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Facebook plans cryptocurrency debut

techcrunch.com

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Re: Facebook plans cryptocurrency debut

#21

Post by kolinko »

wz1000 wrote: post #17
A2017U1 wrote: post #13

Earlier quoted context omitted.

Have you transferred money across borders to an individual lately? As much as I want to criticize this FB is probably in an excellent position to navigate the kyc minefields.

My question was "what does blockchain bring to the table compared to a regular database?". How does using a blockchain/cryptocurrency make it easier to sidestep regulations compared to a regular old database?

Sidestep regulations - if you build a system that doesn't allow you to do certain things (e.g. change balances at will), then the government cannot force you to do them.

But again - it's not about regulations. It's about interoperability. Centralised money transfer stuff is not new (PayPal? Banks?), the problem with it was always integration with other systems.

Also, if it's a centralised database, it's hard to build real startups on top of it. Look at what happened to startups building on top of Twitter APIs when Twitter decided to change them. If you build some parts on top of a public blockchain, it gives guarantees related to accessibility of those parts in the future.

Re: Facebook plans cryptocurrency debut

#22

Post by wz1000 »

kolinko wrote: post #18

A few points: - some pegged currencies are still decentralised (e.g. MakerDAO) - they rely solely on smart contracts - even with a centralised peg, you have to trust an organisation to keep the collateral, but the contract can state that anyone can move the funds around, so the managing organisation cannot just remove funds at will Also, compared to a centralised database, you have an interoperability aspect - if it'…

> Also, compared to a centralised database, you have an interoperability aspect - if it's just an organisation keeping everyone's balances, it's hard to make those balances interact with the rest of the blockchain ecosystem (e.g. how do you participate in an ICO, if the crypto balances are stored in one system, and token balances are stored in another? implement APIs for every single one of them?)

I'm pretty sure its much easier to make a single request to a single well defined server, as opposed to connecting with a swarm of peers, downloading the entire blockchain, verifying it, and computing your balance by traversing the entire history.

Its not like there is some universal "blockchain API" that computers come from the factory ready to understand. Specialised code has to be written to deal with every new cryptocurrency.

Re: Facebook plans cryptocurrency debut

#23

Post by mbrock »

Facebook's blockchain will most likely be a consortium of corporate validators. In this case you could say that the blockchain is "just" a normal distributed append-only hash-linked ledger with public verifiable records, but nowadays the more concise term for that is "blockchain."

Re: Facebook plans cryptocurrency debut

#24

Post by netrikare »

wz1000 wrote: post #6

Can anyone explain what the point of a pegged cryptocurrency is? Since you are dependent on the issuing entity to honour the stated peg, why not just have your balance be an entry in a regular database maintained by that entity? What exactly does the blockchain gain you here? One thing it does _not_ get you is censorship resistance. If the central authority wants to take away coins from a wallet, all it needs to do i…

This will probably be great for people who trade a lot of cryptocurrencies. In some countries crypto-crypto trading is free from taxation. When cyclic crypto bubble bursts and multi-year downtrend starts, you have to sell those cryptocurrencies for USD and pray exchange does not go bankrupt/hacked/exit scam or withdraw and pay taxes. Right now there are some forms of stable coins issued by private companies with no guarantee of buying back issued tokens. Very unstable market. FBCoin may change this. I believe first customers will be cryptcurrency exchanges.

Re: Facebook plans cryptocurrency debut

#25

Post by chvid »

The most logical thing for Facebook would be to create something similar to the Chinese payment systems Alipay and WeChat Pay, bound directly to your Facebook account and maybe even issuing credit to some accounts. Completely different from a pseudonymous cash-like cryptocurrency like Bitcoin or Tether.

Re: Facebook plans cryptocurrency debut

#26

Post by A2017U1 »

wz1000 wrote: post #17
A2017U1 wrote: post #13

Earlier quoted context omitted.

Have you transferred money across borders to an individual lately? As much as I want to criticize this FB is probably in an excellent position to navigate the kyc minefields.

My question was "what does blockchain bring to the table compared to a regular database?". How does using a blockchain/cryptocurrency make it easier to sidestep regulations compared to a regular old database?

fair call, considering it's all permissioned, to pathetically argue the point I don't really care much for:

I guess you could claim some sort of providence of money movements using a git like system but realistically I think it's likely the marketing department had far more to do with the decision than the engineering dept.

You only have to look at wechat's dominance thoughout Asia to realise whatapp could get absolutely blown away by the all-in-one messenger/payment system if it took off in the West.

Re: Facebook plans cryptocurrency debut

#27

Post by CaptainZapp »

A2017U1 wrote: post #13
wz1000 wrote: post #6

Can anyone explain what the point of a pegged cryptocurrency is? Since you are dependent on the issuing entity to honour the stated peg, why not just have your balance be an entry in a regular database maintained by that entity? What exactly does the blockchain gain you here? One thing it does _not_ get you is censorship resistance. If the central authority wants to take away coins from a wallet, all it needs to do i…

Have you transferred money across borders to an individual lately? As much as I want to criticize this FB is probably in an excellent position to navigate the kyc minefields.

Have you transferred money across borders to an individual lately?

Actually yes.

From Switzerland to my brother in Belgium. It was transferred on the same business day at no expense to him or me. Look up SEPA[1] for details.

Just because the American banking system is the complete shits this does not necessarily apply to the rest of the world.

[1] https://en.wikipedia.org/wiki/Single_Euro_Payments_Area

Re: Facebook plans cryptocurrency debut

#28

Post by headsoup »

Kiro wrote: post #20
annadane wrote: post #2

Okay, so like, I'll defend them on this in principle. That said, can you address, like, you know, the myriad scandals you have BEFORE doing something ELSE? It's a bad look.

What scandals have they not addressed?

Probably depends on what you define as 'addressed'...

Re: Facebook plans cryptocurrency debut

#29

Post by wz1000 »

mbrock wrote: post #23

Facebook's blockchain will most likely be a consortium of corporate validators. In this case you could say that the blockchain is "just" a normal distributed append-only hash-linked ledger with public verifiable records, but nowadays the more concise term for that is "blockchain."

Every git repository counts as a blockchain by that definition.
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