Is Libra just a stablecoin project?
William Zhang has written an article to express his opinions on the controversial cryptocurrency project, Libra, developed by Facebook. He has summarized the following points after scrutinising the recently released Libra whitepaper.Â
a) Libra is indeed a stablecoin project
- According to the white paper, blockchain technology can solve the problem of feasibility and trust for cheaper and faster financial services.Â
- It is believed that blockchain technology can achieve asset identification, global payments at low cost, and decentralization.Â
- Based on the above characteristics of the blockchain, the Libra blockchain will extend to billions of accounts. It is necessary to build a high-throughput, low-latency, high-capacity storage system that requires high security and reliability to secure financial data and funds.Â
- The white paper clarifies that Libra’s goal is to be a stable digital cryptocurrency that will be backed by a real asset reserves (called â€œLibra Reservesâ€) and supported by a network of trading platforms that trade Libra.
b) Libra is a digital asset identification and trading project
- The white paper mentions the creation of the MOVE language for the pursuit of digital asset transactions.Â
- â€œMoveâ€ is a new programming language for implementing custom trading logic and â€œsmart contractsâ€ in the Libra blockchain.Â
- As Libra’s goal is to serve billions of people every day, Move’s design first considers security and reliability. Move is a programming language created from the experience of security contracts related to smart contracts that have occurred so far, making it easier to write code that matches the author’s intent, thereby reducing the risk of unexpected vulnerabilities or security incidents.Â
- Move is designed to prevent digital assets from being copied. It restricts digital assets to â€œresource typesâ€ that have the same attributes as real assets: each resource has only one owner, resources can only be spent once, and new resources are restricted from being created.Â
- Move language also makes it easy to automatically verify that a transaction meets certain attributes. By prioritizing these features, Move helps keep the Libra blockchain secure.
c) Libra is a blockchain alliance project aiming at public blockchain
- The blockchain uses a BFT mechanism based on the LibraBFT consensus protocol to achieve agreement between all certifier nodes on the transactions to be executed and their execution order.Â
- This approach builds trust in the network because the BFT consensus protocol is designed to ensure that the network is functioning properly even if some of the verifier nodes (up to one-third of the network) are corrupted or fail.Â
- This type of consensus protocol also enables a high-traffic, low-latency, and more energy-efficient consensus approach than the â€œproof of workâ€ mechanism used in other blockchains.
- An additional goal of the Libra Association, which manages the Libra blockchain, is to develop and promote an open identity standard. The Association believes that decentralized and portable digital identity is a prerequisite for financial inclusion and competition.
- The goal of the Libra project is to gradually increase the degree of decentralization.Â
- The white paper argues that this decentralization helps to lower the barriers to entry and use of the network, and in the long run it also helps to increase the resilience of the Libra ecosystem.Â
d) The project has just begun and global participation is welcomed
- The project will recruit a managing director for the association and continue to form the executive team of the association.
- The project has just begun and needs to seek help from the community. If you believe that Libra can serve billions of people around the world, you can share your views and join the project.Â
- If you are a researcher or protocol developer, you can preview the Libra test network (released under the Apache 2.0 open source license) and supporting documentation in advance. The test network is still an early prototype in development.
If you can read Chinese and are interested in this topic, please click the following link: https://forum.cyberrepublic.org/t/libra/1258
Looking at Microsoftâ€™s DID system from the perspective of internet reconstruction
Ding Ning has posted an article following the announcement of Elastos joining the World Wide Web Consortium and Decentralised Identity Foundation. In the era of information, this news will soon be drowned out and few people will seriously consider the value and meaning behind the information. Some of the main highlights of the article are as follows:
Data privatization is the trend of historical development
- Facebook user data leakage incident has given the world a good lesson. People find that the original Internet is very insecure and a centralized platform can also be evil. Personal information is important.Â
- Facebook realized the seriousness of the problem and after realizing that data privatization will be the future trend, Zuckerberg also began to bet on the blockchain and launched a data privatization campaign.Â
- On March 12, 2019, Sir Tim Berners-Lee posted an open letter on the eve of the 30th anniversary of the birth of the World Wide Web and he re-examined his views on the Internet.Â
- Although the internet has brought countless conveniences to mankind, today, the person who is called the “father of the World Wide Web” wants to save the Internet and even overthrow the Internet.Â
- Tim Berners-Lee, the father of the Internet, believes in blockchains and using blockchains to clean up existing Internet and protect user data.
- Microsoft disbanded the Windows workgroup and turned to the DID system. In order to better protect user privacy and realize data privatization, Microsoft is working hard to realize the decentralized identity recognition system based on blockchain.
- Data privatization is a historical trend and the actions of the world’s top big companies and the father of the Internet have made efforts to meet future changes.Â
- DID will be an important starting point for the transformation of the Internet of information to the Internet of value.
Decentralized ID is a prerequisite for data privatization
- In the traditional world, Google, Facebook, Tencent, and Alibaba each assigns an ID to each user. This ID is the ID card on their platform.Â
- These big platforms may shut down your account, but you can’t do anything, but with DID, they can’t revoke access to all the tools that rely on large platform ID logins.Â
- In addition, all personal photos, documents, audio and video data on these large platforms will belong to the user, the holder of the DID.Â
- In other words, with DID, you don’t have to worry about “no account number”, the content of the bound third-party software account and the original account will still belong to you.
- Microsoft is launching its first decentralized infrastructure through a large technology company directly built on the Bitcoin blockchain, an open source project called ION that covers the underlying mechanisms of how networks communicate with each other.Â
- For example, if you use Facebook to sign in to Airbnb, the agreement is to send the personal information in the social profile to the external software. In this case, ION processes decentralized identifiers that prove that the user is eligible to own the data key. Christopher Allen, co-founder of the World Wide Web Consortium (W3C) decentralized identity (DID) solution working group, believes Microsoft’s move may affect the entire technology industry.
- There are reports that although Facebook has been invited to participate in Microsoft’s DID project and community work, so far, the company has refused status and continues to follow its historic user data approach.
- Faced with this problem (in order to maximize the company’s interests), the “Decentralized Identity Foundation” (DIF) was established last year to promote interoperability of blockchain-based ID systems. Alliance members including Microsoft, IBM, Accenture and other well-known companies are jointly exploring the development of decentralized identity systems.
The realization of data privatization requires the redesign of the Internet architecture
- The wave of data privatization requires the decentralized design of the Internet system. Google, Facebook, Tencent, and Alibaba are all network operation centers.Â
- The privatization of data needs to go to the operation center and requires the reconstruction of the Internet architecture.
- The world needs an “altruistic” Internet ecological thinking. Only “open source, open, self-running” can win the trust of the world.Â
- The Internet is a public network. It is not appropriate for any country or centralized organization to manage. Just as China’s rise in 5G, the United States will inevitably suppress it. What should we do? Only by building an open source, trusted, self-running and decentralized service provider to manage the network. Everyone (China, the United States, the European Union, etc.) is fair.
- In order to better realize the original intention of the Internet – Berners Lee believes that the most valuable place on the Internet is to give people equal access to information.
- In the Elastos carrier network, connection and communication authorization are established based on identity.Â
- In a decentralized network, users also need an ID to identify themselves. Including Elastos Carrier communication, you also need to authorize and add friends based on ID.Â
- This ID is not issued by any organization and is generated by the blockchain. It’s like a bitcoin wallet, anyone can create it for free and it works. Individuals can create friends based on this ID and because of IDs, like Bitcoin wallets, can be verified by certificates and signatures, and are very secure and anti-counterfeiting.Â
- We call the ID based on the blockchain DID (Decentralized ID). DID can be not only a person, but also a website, a DApp, or an Internet of Things device.
- Everything has an identity, and everything can be interconnected. A new trusted Internet was built based on DID and Elastos Carrier. We do not have to worry about DDos attacks here, man-in-the-middle attacks, identity fraud and data leakage. This is the basis of the value of the Internet.
- Elastos was invited to join the Decentralized Identity Foundation (DIF) to explore decentralized ID development with companies such as Microsoft and IBM.Â
- Elastos also joined the W3C organization (WorldWide Web Consortium, World Wide Web Consortium: http://www.w3.org) and will actively explore the application of blockchain technology in the Web.Â
- These two things are a connected whole, and the goal is to create a new, safe, credible and decentralized Internet.
If you can read Chinese and are interested in these topics, please click the following links: https://forum.cyberrepublic.org/t/did/1269
Thoughts on Elastos FAQ (Part 7 to Part 9)
Ding Ning continued to create several topics surrounding some frequently asked questions about Elastos project. We have summarised the gist of the discussion as follows:
a) How did the 16.5 million ELA tokens arise?
- In August 2017, a white paper for the private sale mentioned that 16.5 million ELA tokens would be airdropped to BTC holders.Â
- In December 2017, the second edition of the white paper was also developed. Both editions of the white papers clearly indicated that all unclaimed ELA tokens ultimately would be injected into the Elastos capital, which would be used for investment in Elastos ecosystem development.Â
- In February 2018, only a few hundred thousand ELAs were airdropped to Huobi’s BTC holders. About 16 million tokens were injected into the Elastos capital according to the provisions of the White Paper.
- After the Elastos anniversary event held at the end of August 2018, 16.5 million ELA tokens was transferred from the more centralized Elastos capital to the more community-oriented Cyber Republic.Â
- At this time, the community was promoted by a force of rights protection and threw out The White Paper on the Elastos project.Â
- In this white paper, there is a key condemnation of the Elastos project, namely – the spirit of the white paper and unilaterally changed 16 million ELA airdrops to investment in ecosystem development.Â
- However, according to the provisions of the two editions of the white paper, the 16 million tokens used for ecosystem development does not violate the spirit of the white paper. It is more like a result of powerful forces exaggerating the matter.
b) Does Elastos have problems in community maintenance?
- There are still many problems. The right attitude to face conflict is not to avoid it, but to analyze it, understand it, and solve it.Â
- Elastos project has a problem of poor community maintenance, problems of management and communication, and problems of insufficient coordination of interests.
- These problems are objective, but as the project develops, many problems also show a trend of transformation.Â
- With DPoS having begun June 17, 2019, many people who think rationally will return to Elastos community.
- Community partners interested in the next generation of the Internet are growing.
- The technical team is working hard to achieve the vision in the white paper; CR (Cyber â€‹â€‹Republic) is learning through experience and democratic self-government.
c) How to solve the problem of 16.5 million ELA tokens?
- This is a legacy of history, because some people worry that these ELA tokens will be used badly.
- These tokens are a double-edged sword for the Elastos project. The key is how to handle them and use them to serve the community.Â
- These tokens must not be used as a tool to do evil. But, just as money will do evil in the hands of the bad guys, the solution is not to burn the money!
- What should be done with these tokens? The Elastos Foundation transferred these tokens for CR management, and the amount of money used each year cannot exceed one tenth the supply.
- Many community partners have already put forward their own ideas. Express your own opinions here: https://forum.cyberrepublic.org/t/topic/925/7.
- These tokens are an unknown factor in the secondary market. But there should be a way to resolve doubts in people’s minds. Here are two posts where community thoughts can be shared.Â
- Ideas about the Elastos Ecological Fund https://forum.cyberrepublic.org/t/assumption-of-elastos-eco-fund-scheme/850
- Elastos also needs to build top-level designs on technical and economic models https://forum.cyberrepublic.org/t/topic/883
- It is believed that under the autonomous administration of the CR, these tokens will be well supervised, arranged, and used. This is also a very attractive place for the Elastos project – a democratic and autonomous internal governance mechanism.
d) The origin of Cyber Republic?
- Cyber â€‹â€‹Republic in Chinese means “Network Republic”, a name that is a domain name that Rong Chen registered more than ten years ago.Â
- Elastos community is to be developed into something that everyone can participate in.Â Everyone share resources, builds together, runs business models on it, just like a virtual world.Â
- The name Cyber â€‹â€‹Republic is very cool because it basically reflects the vision that the Elastos community has to achieve â€“ a virtual, co-governing world based on electronic network systems.Â
- Everyone in CR has a contribution, can get rewards, can run their own business model, and do all kinds of services, just like the real “world.”
- Cyber â€‹â€‹Republic began with the guidance of the Elastos Foundation. The Elastos Interim Council only is here to help build the CR. After the first actual CR Council elected, it will begin its formal operation. After its establishment, CR will be fully independent for EF.
e) What is the relationship with the Elastos Foundation after the establishment of Cyber Republic?
- CR and the Elastos Foundation are two separate institutions. CR is an independent entity, and the use of funds accounts is also separate.Â
- The mission of the Foundation is to make the product of Elastos (new Internet infrastructure). CR’s job is to organize the community.
- For example, the Elastos community has partners all over the world. There must be a democratic mechanism to determine the direction of the Elastos.
- Important issues are in need of CR to decide on. CR’s decision relies on members, and members are elected by community members, so CR must build a network republic that also comes to the democratic self-government of the Elastos community.
- Elastos Foundation also uses funds for the development of Elastos (new Internet infrastructure) products.Â
- After a few years, the Foundation will withdraw from the stage due to its mission. CR will not disappear.
- In addition to the start-up funds, it also has the hematopoietic function of the addition of Elastos tokens and the DPOS reward mechanism.Â
- In the past few years, relatively large funds were needed to build the Elastos infrastructure. The upcoming CR is similar to a light government, which maintains the normal operation of the entire CR fund and community.Â
- It eventually develops into an ecological project in CR, including the business services rendered by community members.
f) Who can control Cyber Republic?
- There is no individual that can control CR, and the fate of CR is reflected in the overall will of its community members.Â
- Members of the Cyber â€‹â€‹Republic are democratically elected and are expected to begin the formal process of electoral elections early next year.Â
- Prior to this, the CR Interim Council will help establish CR, designed the structure, organization, and system of the entire organization. It also is there to install the code to develop the decentralized trust mechanism (Cyber â€‹â€‹Republic Consensus, which is the consensus algorithm mechanism of CRC).
- Through this consensus algorithm mechanism, all ELA-sponsored people can vote for CR “Members” by ELA voting.Â
- Each ELA holder can also choose a representative that he or she trusts. These elected representatives have the right to review, vote, and propose solutions.
- In the future, the Elastos wallet will have the ability to elect or impeach CR Council members in addition to DPoS supernodes voting. Everything is built on the blockchain, and executed in a smart contract manner, without changing the subjective will of the individual.
- Members of the Elastos community hold ELA, similar to a shareholder, and everyone’s interests are thus tied to each other.Â
- If a person is elected into Council, he will receive benefits and will also lead the way toward healthy development. Of course, in the process of voting, the required holding of ELA is a sign of wealth, and some people complain of inequality.Â
- This needs to be explained: Is there absolute equality between ancient and modern China and foreign countries? Which system can achieve absolute equality for all?Â
- The use of ELA votes to participate in democracy is a common practice in modern capitalistic societies, and it is also a relatively scientific choice under existing conditions.
- There are many different voices in the community. This is a normal phenomenon. Democracy in modern society requires communication and mutual supervision with different perspectives.Â
- The CR organization community implements democratic autonomy, and in the long-term,it will inevitably form three major influential forces similar to American political lifeâ€”political parties, elected governments, and interest groups.Â
- Elastos CR is similar to the â€œelected governmentâ€. People or alliances with a large number of ELAs become â€œinterest groupsâ€, and nodes with great influence in the community will form â€œpoliticsâ€.Â
- These forces influence each other and restrict each other and jointly promote the development of democratic autonomy.
If you can read Chinese and are interested in these topics, please click the following links: