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Libra Starts the End of Public Chains

In my previous article (So Many Public Chains, So Few Dapps), I pointed it out that too many public chains was one of the reasons that there were so few Dapps. App developers really do not want to develop their apps for so many blockchains. The over supply of blockchains is actually hindering the adoption of blockchain technology. The Libra blockchain provides an opportunity to solve this problem. Libra is composed of three parts, Libra stablecoin, Libra blockchain, and Libra Association. Currently, most attentions have been focused on Libra stablecoin. But, in my opinion, Libra stablecoin is just a Troy horse. The real threat hidden in Libra is Libra blockchain. According Libra whitepaper, Libra provides a simple financial market infrastructure. But Libra blockchain does not only...

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Is Libra a Paper Tiger?

Of course, Libra is not a paper tiger. Otherwise it won’t cause the immediate concern of global financial regulatory bodies and central banks, as well as the hearings by United States congress. But, this project indeed has inherent risks which make it very vulnerable. There is a good chance that it may get seriously delayed or may be forced to shut down if it cannot deal with these risks appropriately. If, unfortunately, it is forced to stop, then its short period of existence is then really a paper tiger.Soon after the Libra project news was released on June 18th, I wrote an analysis report (A Business Analysis of the Libra Project) analyzing many aspects of this project. I pointed it out that one of the risks of this project is its scope. Since this project is trying to achieve ...

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How to Mint Stablecoins Based on Bitcoin?

The Libra project raised market’s attention to stablecoin to an unprecedented level. It not only forces global financial regulatory bodies and central banks to take necessary measures, but also stimulates market’s enthusiasm in developing more stablecoins. Since Libra’s project scope is too large, it assumes a lot of risks. There is a big uncertainty in its future. But, Libra’s design and its experience can certainly be learned by other stablecoin projects. Better designed and more feasible stablecoins can be brought to the market.A couple days after the Libra news was released, I wrote a report analyzing this project (A Business Analysis of the Libra Project) . In the last part of this report, I proposed a new mechanism of developing a stablecoin that can be a competing product ...

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Libra, the Pandora Box for Central Banks

The Libra project is going to provide a financial market infrastructure(FMI) and issue a stablecoin on this FMI. This new FMI and its stablecoin will run in parallel with existing FMI. In view of the global presence and influence of the Libra Association members, this project inevitably causes serious concerns from financial regulators worldwide. This project then pushes central banks to make policies with regard to Libra as well as other similar stablecoins and speed up their own currency digitalization process. This paper explores possible measures central banks may take.1,It all started with BitcoinThe birth of Bitcoin in early 2009 can be said to be the big bang origin of the digital asset world. Bitcoin not only directly creates a digital virtual asset, but also produces a...

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How to Build a Stablecoin To Compete with Libra?

In my Libra project analysis report (A Business Analysis of the Libra Project), I pointed out that there is still a very good opportunity to develop a new stablecoin that competes with Libra. The Libra project is definitely not the end of the stablecoin project, but a milestone in this process. More stablecoin projects will appear to provide more stablecoin products for the market. In terms of the mechanism for generating stablecoins, other stablecoin products can be substantially different from Libra. In terms of application scenarios of stablecoin, a more suitable application scenario can also be adopted. In view of the fact that stablecoin is still at a very early stage and all the risks of the Libra project, other stablecoin products still have a very high probability of success. ...

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Commercial Bank, Victim of the Blockchain Era

In the blockchain era, the basic components of the banking industry infrastructure are going through fundamental changes. Commercial banks operating on fiat currencies and clearing networks will inevitably undergo fundamental changes consequently. Only by clearly understanding this development trend can commercial banks adopt appropriate strategies and become winners in the new market structure brought about by this paradigm shift.Blockchain and cryptoassets are fundamentally changing the current banking infrastructure as well as all market organizations and business processes on top of it. Commercial banks, the basic components of the financial market, bear the brunt of this market paradigm change. In the internet age, commercial banks have already been impacted because of the fre...

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A Business Analysis of the Libra Project

This report analyzes the Libra project from different business perspectives. The goal of this report is to help our clients better understand the Libra project and the opportunities it brings so as to make the right business decisions.The Advantages and Opportunities of Libra1. Achieve a fair coin minting mechanismThe coin minting mechanism of Bitcoin is a very fair one. Any individual or institution can obtain newly minted bitcoins by providing bookkeeping services. In the current financial society, however, the right to issue money is exclusively owned by governments. Governments obtain a large amount of wealth accumulated in the society through the money they issue. Ordinary individuals and organizations are deprived of the privilege of participating in this process. L...

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To Join Or Not To Join Libra

Most reviews on Libra has underestimated the power of its organization, the Libra Association. This association, in my opinion, is the best feature of this initiative. It is more important than the other components of this project, and more important than 2.7 billion Facebook users.The underlying technology    In terms of underlying technology, the Libra project is going to blockchain technology to support the circulation the Libra stablecoin. This technology infrastructure is in essence not that different from other blockchain implementations. Its consensus mechanism adopts Hotstuff which was released by VMWare a few months before. The only innovative part in this project is the Move language. But a new programming language appears every several years. Before t...

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Libra一定会邀请微信支付和支付宝加入协会

迄今为止所有对 Facebook 稳定币项目的分析,都低估了「Libra 协会」在这个项目中的作用和价值。我认为这个协会是这个项目中的最大的亮点。这个项目在这个底层技术、货币生成机制和潜在用户基础方面的亮点都远远不如这个组织的组织机制。Libra 的组织机制和其成员对这个稳定币项目的推进作用要远远大于 Facebook 在全球的 27 亿用户。技术底层在技术方面,支持这个稳定币运行的区块链技术底层的基本机制其他区块链的机制没有质的区别。而且其共识机制采用了几个月之前 VMWare 发布的 Hotstuff。此方面的一个创新是引入了一个新的语言 Move。但新的编程语言在硅谷每几年就出现一个。此前是 Google 的 Go。很有可能几年之后出现一个新的语言叫 Fly。所以在这个项目的技术方面,我完全同意网传的马化腾的观点,也就是此方面的技术已经非常成熟。Libra 在技术方面并不比其它项目更具优势。货币机制Libra 稳定币的价格会对标一揽子法币。在这方面,它不同于现在大部分的对标单一法币的稳定币。对标一览子法币会增强稳定币的稳定性,减少受单一法币波动性的影响。这样的对标方式类似于 IMF 的 SDR。所以这种方式本身也不是很大的创新。在稳定币发行所依赖的抵押品方面,它所接受的是法币和短期国家债券。这个模式也是金融市场中普遍采用的抵押品管理机制。在稳定币政策方面。Libra 的白皮书明确说明它依赖于所对标法币的央行政策。在稳定币的发行量方面,发行数量完全由市场的需求来做决定。所以在货币生成机制方面,Libra 稳定币基本上也是常规的稳定币的生成机制。潜在用户在潜在用户方面,Facebook 的确有遍布全球的 27 亿的注册用户。这个方面的优势确实比较明显。但是,具体到加密数字资产领域,这个领域中的爱好者使用的社交网络是 Twi...

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