Facebook’s New Libra Cryptocurrency Will Probably Fail.

While Less known crypto coin XinFin XDC already aims to achieve more on the adoption front.

Facebook made a big splash by unveiling its long-awaited move into cryptocurrency with a novel product called Libra, funded by prominent market players like Visa, PayPal, eBay, Uber and Spotify, indicating that Libra could eventually be accepted as a payment on their platforms as well.

Each founding member put $ 10 million into this reserve. This reserve will also be supplemented by Libra traders. In order to encourage the adoption of the currency by their partners or clients, the founding members will receive bonuses in Libra, which will come from a private placement. “On the user side, to create new Libra coins, there must be an equivalent purchase of Libra in fiat currencies and the transfer of that currency to the reserve. Thus, the reserve will grow as demand for Libra from users increases, “as mentioned in the white paper.

Logically, to allow everyone to use the Libra, the Libra blockchain was created. The organization isn’t camouflaging about it. Looking at the current crypto market, there is a high probability that Libra is going to fail as a cryptocurrency or stable coin. let’s discuss few important points where Facebook fails miserably while a less known crypto player like XinFin (XDC) already address those points.

Partnership for adoption:

Facebook-Libra already has founder members like Visa, PayPal, eBay, Uber and Spotify which leads to more payment centric coins for only e-commerce transaction. while Looking at XinFin already have a partner like USDC stable coin (Circle- Regulated USD paged crypto coin), R3 (R3 has over 250+ Institution partners spread across the world.) RAMCO (ERP Company with Trusted by 1000+ customers across 35 countries)

Looking at the above points it’s very clear that Libra is more focusing towards only payment space while XinFin is focusing towards enterprise adoption of blockchain with the enterprise customer.

Stable coin and market capitalisation for a famous stable coin.

As per whitepaper, Libra will be backed by a reserve of real-world assets, including bank deposits and short-term government securities. This should make it more stable than other cryptocurrencies. While you look at the current crypto market, stable coin already created like Tether-USDT, trueUSD(the World’s First Legally Backed Stablecoin), USDC (backed by Regulated entity called Circle and Coinbase). Looking at this scenario stable coins like Libra can be just another stable coin.

A most famous stable coin like Tether-USDT doesn’t have market capitalisation than 3.5 billion while Facebook already added 150 billion valuations by the just announcement of Libra coin in the last 6months of time.

If we look at smaller player’s like XinFin, they already partnered with Circle runs regulated crypto coin called USDC. So this coin can serve all possible features of Stable coin while they don’t even have market cap more than 3Million. (data source: Coinmarketcap.com )

The Libra blockchain still under development

A brand new programming language has been developed to implement this blockchain. It has to go fast, support hundreds of millions of users (1,000 transactions per second), and be secure. So, Move turns out to be the dedicated language. “Move is designed to prevent the cloning of assets. It uses “asset types” that require digital assets to follow the same properties as physical assets: they have a sole proprietorship, can only be spent once, and the creation of new assets is limited. “

The association wanted the flexible Libra blockchain to easily integrate future innovations “in financial services”. We can, therefore, assume that the mere circulation of the Libra will not be their only purpose and that its development is still under wraps.

While if you look at the XinFin blockchain Network, it is already live and supporting Solidity Language which is already famous in blockchain technology space. please check the live network at https://XinFin.Network as per the website and other sources they claim to support more than 2000 transactions per second which is more than the claim by the Libra blockchain.

Central authorized nodes vs Decentralized Nodes

However, the Libra could open the door for consumers to examine the cryptocurrency market.

Facebook will have a nice wallet that everyone can buy. Its ease of use however it’s a permanent recording of all transactions which is ideally set up for regulatory compliance in the long run is a matter of concern. Also, we would like to bring forth the fact that XinFin is based on blockchain that uses Merkle Trees or Hash trees (Manage under Decentralized Nodes) whereas Libra is a single tree or data structure, where transactions can only occur with the central authorized nodes and with a permanent record being generated at all times.

USA Government Objections

However, the path taken by Facebook does not fail to raise concerns and even meets with some mistrust on the part of the government. In the United States, the Senate Committee on Banking, Housing and Urban Affairs is intending to hold a hearing on July 16th 2019 about Facebook’s new cryptocurrency, Libra.

The hearing, titled “Review of Facebook’s Proposed Considerations for Digital Money and Privacy”, followed by calls of the members of Congress for a closer look at the project and its potential risks.

We would like to emphasise our readers that Facebook has too much power and a terrible record of protecting our personal information. We have to hold them accountable and not give them a chance to access further user data. Facebook has the second highest user base from the USA.

Indian Government Aspects:

In early 2018 India’s central bank, the Reserve Bank of India (RBI) announced a ban on the sale or purchase of cryptocurrency for entities regulated by RBI.

As per Libra White paper, they are focusing on emerging markets like India but as per the report, Facebook Has Not Applied for RBI Approval to Operate Libra in India. As per the Indian Regulation, Cryptocurrency is Illegal in India. Facebook has the Highest user base from India but looking at the current Indian legal framework looks like it is difficult to use Libra in India.

Russian Government already declared illegal to Libra: Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov has said that Libra will not be legalized in Russia.

While XinFin not operating in India and none of the government representatives raised any question against the Public Platform.

More information about XinFin available at XinFin.org and XDC (XinFin Digital Contract) already listed with 20+ exchanges and list available at website XinFin.io.

Crypto Cambridge Analytica?

After Cambridge Analytica scandal Facebook, millions of Facebook account has been closed down and even CEO Mark Zuckerberg, Sandberg apologize.

Looking at such dark history with Facebook we can’t avoid the possibility of a next crypto Cambridge Analytic with Libra Coin.

Looking at all the above points, my vote goes to less known Crypto XinFin XDC and not to Facebook Libra. Please share your Views and Comments.

Also, Have a look at my previous article where the leading blockchains are compared with each other.

https://medium.com/@vinn9686/blockchain-for-enterprises-comparing-cosmos-eos-ethereum-litecoin-tron-and-xinfin-c11bc6726333