Facebook’s Project Libra: Will Libra Sputter Out or Spur Central Banks to Introduce Their Own Unique Cryptocurrency Projects?

Taskinsoy, John

doi:10.2139/ssrn.3423453

Cited by 33 publications

(12 citation statements)

References 44 publications

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“…That is because each blockchain requires its own wallet and has unique interaction mechanisms. By way of example, making transactions to a smart contract deployed on Ethereum [8] will significatively differ from a similar contract deployed on Ripple [21], Corda [22], HyperLedger [23], or the upcoming Libra [24] due to the differences among such blockchains [25]. Therefore, users will have to learn the specifics of each blockchain to interact with different ÐApp's.…”

Section: Motivationmentioning

confidence: 99%

Easing ĐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Teruel

Trujillo

2020

Applied Sciences

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Blockchain decentralized applications (ÐApp’s) are applications which run on blockchains nodes. Thus, to interact directly with this sort of applications, users need to have a blockchain address, wallet, and knowledge about how to make transactions to interact with ÐApp’s. Therefore, the knowledge required to use a ÐApp can easily make users to desist when trying to interact with them. To tackle this issue, we propose a software architecture that will be in the middle of the user and the ÐApp, thus making users initially unaware of the fact that they are interacting with a ÐApp. This is achieved by analyzing the relationship between ÐApps and Apps by using UML modelling. Next, based on the previous analysis, we created a middleware for users to interact with a ÐApp in the same manner they do with a traditional web app, i.e., by using usernames, passwords and user interface elements instead of addresses, private keys or transactions. To put the developed middleware into practice, we developed a ÐApp that makes use of it. This ÐApp registers the time control of workers from companies by using blockchain to store the data in a secure and non-modifiable manner. Finally, we performed an experiment, thus demonstrating that a ÐApp that implements the proposed middleware would improve its usability for users with no experience with blockchain.

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Section: Motivationmentioning

confidence: 99%

Easing ĐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Teruel

Trujillo

2020

Applied Sciences

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“…That is because each Blockchain requires its own wallet and has unique interaction mechanisms. As an example, making transaction to a smart contract deployed on Ethereum [8] will significatively differ from a similar contract deployed on Ripple [21], Corda [22], HyperLedger [23] or the upcoming Libra [24] due to the differences among such Blockchains [25]. Therefore, users will have to learn the specifics of each Blockchain in order to interact with different Ð Apps.…”

Section: Interacting With ðAppsmentioning

confidence: 99%

Easing ÐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Teruel¹,

Trujillo²

2020

Preprint

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Blockchain decentralized applications (ÐApps) are applications which run on Blockchains nodes. Thus, in order to interact directly with this sort of applications, users need to have a blockchain address, wallet and knowledge about how to make transactions in order to interact with ÐApps. Therefore, the knowledge required to use a ÐApp can easily make users to desist when trying to interact with them. In order to tackle this issue, we propose a software architecture that will be located in the middle of the user and the ÐApp, thus making users initially unaware that they are interacting with a ÐApp. This is achieved by analyzing the relationship between ÐApps and Apps by using UML modelling. Next, based in the previous analysis, we created a middleware for users to interact with a ÐApp in the same manner the do with a traditional web app, i.e. by using usernames, passwords and UI elements instead of addresses, private keys or transactions. Finally, in order to put the developed middleware into practice, we developed a ÐApp that makes use of it. This ÐApp registers the time control of workers from companies by using Blockchain to store the data in a secure and non-modifiable manner.

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“…Even a few years after Bitcoin's 12 inception, it was still an arcane topic; for instance, a survey by Bloomberg (2013) 13 revealed that only less than half of those polled knew what Bitcoin was (oddly, 6% thought it was a video game). Although Bitcoin has achieved becoming a household name in less than a decade of its existence (Wallace, 2011), some traditional economists still find it difficult to get a grasp on the Bitcoin phenomenon (Sovbetov, 2018;Taskinsoy, 2018a;2019c). Bitcoin has no intrinsic value, its value is based on belief and trust.…”

Section: Introductionmentioning

confidence: 99%

“…Less than a year later (December 27, 2010), Bitcoin had achieved a historic milestone when bitcoin price hit $0.29 BTCUSD, and spurred the introduction of many cryptocurrencies. The sale of a good involving bitcoins occurred at the end of 2009, where a bitcoin user swapped 10,000 BTC for an order of two pizzas from Papa Jones in the U.S. 14 (Kristoufek, 2015;Phillips & Gorse, 2017;Taskinsoy, 2018aTaskinsoy, , 2019c. The image of digital coins has been blemished by their extreme volatility (see Table 1 and 2), nevertheless investors globally have kept pouring billions into this asset class making the price of bitcoin peak at intraday high of $20,089 in December 2017, but few months later 80% of bitcoin value vanished.…”

Section: Introductionmentioning

confidence: 99%

“…the Libra Association as the central authority). Another confusion is that Libra coin runs on blockchain without block, this is far different from Bitcoin blockchain where every new transaction through mining starts with a block, and then the ledger consisting of timestamped transactions in chronological order is distributed to all miners (nodes) who check and verify before added to the end of each coin in its block (see LA, 2019;Nakamoto, 2008;Berentsen & Schär, 2018;DeVries, 2016;Dai, 1998;Merkle, 1987;Tamassia, 2003;Taskinsoy, 2018aTaskinsoy, , 2019cWood, 2016).…”

Section: Introductionmentioning

confidence: 99%

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This Time is Different: Facebook s Libra Can Improve Both Financial Inclusion and Global Financial Stability as a Viable Alternative Currency to the U.S. Dollar

Taskinsoy¹

2019

jafas

Self Cite

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The aim of this study is to determine the relationship between the propagation of high-magnitude crises since the late 1990s and emergence of cryptocurrencies in the aftermath of the global financial crisis of 2008. Design and Methodology: The study was based on a literature review of the interaction between financial crises and evolution of money in the digital age. A high-level technical overview of Libra and blockchain is provided. The broad analysis of Libra coin looks at various models and categories of implementation approaches. The study discusses the components of blockchain technology and provides illustrative visuals when possible. We also compare consensus models used in the Libra and Bitcoin blockchain networks. The analysis also touches on the use of blockchain technology in applications such as smart contracts. Findings: The study shows that cryptocurrencies are not only a natural but an inevitable transformation in the evolution of money. As with any new technology, Facebook's Libra is going to cause a great deal of disruption in the existing ecosystem of cryptocurrencies that has taken a decade to form. On the other hand, Libra's financial inclusion and global stability as a public good promises to revolutionize the cryptocurrency world. Practical Implications: If Facebook's Libra doesn't sputter out, it will spur central banks to introduce their own cryptocurrency projects. Libra's vast scale will make access to intermediation by banks easier, faster, and cheaper. Unlike Bitcoin, Libra will be backed by a basket of stable currencies as well as low-risk government bonds and central bank reserve assets. Originality/Value: This study presents a clear picture of both advantages and potential risks of Libra which is considered to be a new invention eventhough Bitcoin has been around more than a decade. The study warns regulators and law makers along with central banks who are running headlong into backlash to Libra can harm consumers more than protect them. Punishing Facebook with a troubled past for violation of privacy and exploitation of users' data could adversely affect innovation and discourage developments of cryptocurrencies.

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Facebook’s Project Libra: Will Libra Sputter Out or Spur Central Banks to Introduce Their Own Unique Cryptocurrency Projects?

Cited by 33 publications

References 44 publications

Easing ĐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Easing ĐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Easing ÐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

This Time is Different: Facebook s Libra Can Improve Both Financial Inclusion and Global Financial Stability as a Viable Alternative Currency to the U.S. Dollar

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Facebook’s Project Libra: Will Libra Sputter Out or Spur Central Banks to Introduce Their Own Unique Cryptocurrency Projects?

Cited by 33 publications

References 44 publications

Easing ĐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Easing ĐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

Easing &ETH;App Interaction for Non-Blockchain Users from a Conceptual Modelling Approach

This Time is Different: Facebook s Libra Can Improve Both Financial Inclusion and Global Financial Stability as a Viable Alternative Currency to the U.S. Dollar

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Easing ÐApp Interaction for Non-Blockchain Users from a Conceptual Modelling Approach