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Colin Devroe

Photographer. Podcaster. Blogger. Reverse Engineer.

Libra (the new cryptocurrency) must-reads

So Facebook, among others, announced a new cryptocurrency and blockchain called Libra. You’ve likely already seen the headlines. But perhaps you’re wondering what it means, what makes Libra any different than, say, Bitcoin, or perhaps you have other questions.

I did too. So I’ve rounded up a few links that helped me gain some perspective on this announcement. As with all things crypto, it is fascinating to see all of this play out.

Libra White Paper:

We believe that collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure that a sustainable, secure and trusted framework underpins this new system. And this approach can deliver a giant leap forward toward a lower-cost, more accessible, more connected global financial system.

This white paper lays out the problem, the proposed solution, and even a roadmap for the future of the currency/payments system. It reads well-enough and it a good place to start.

Wired’s article on this announcement:

The Libra Association will consist at first of up to 100 founding members including Facebook, each of which will invest at least $10 million to fund the association’s operations, and receive interest earned off the reserve. (Libra’s NGO members are exempted from the investment requirement.) Each member will be empowered to operate a node on the blockchain, and have a voice in determining changes to its code and managing the reserve.

As reporters are good at, the Wired piece distills the main points of the effort as well as provides context around the crypto-market in general. Adds some flavor to the entire thing.

Ben Thompson’s excellent take:

The best way to understand Libra, then, is as a sort of distributed ledger that is a compromise between a fully public blockchain and an internal database […] This means that the overall system is much more efficient than Bitcoin, while the necessary level of trust is spread out to multiple entities, not one single company…

At this point, I’d call Libra a pseudo-distributed blockchain backed cryptocoin. Rather than network nodes being managed by anyone they are managed by “qualified” entities. And so is the underlying software.

This is yet-another-option in the crypto-market. Something sort of like other coins but different enough that it deserves to exist. Hardliner crypto peeps may take offense to any amount of oversight on something like a cryptocoin but it is bound to occur. This won’t be the last cryptocoin/payments system you see created that has institutional backing and oversight. In fact, it isn’t the first. See JPM Coin from JP Morgan.

Again, I’m fascinated by this space and I will continue to watch as the markets, coins, payment systems, blockchains, and companies spearheading this new territory evolve.

What I saw this week #56 – February 15, 2019

See more in this series.

My crypto and indie web goals for 2019

Steven Johnson, in Beyond the Bitcoin Bubble:

The true believers behind blockchain platforms like Ethereum argue that a network of distributed trust is one of those advances in software architecture that will prove, in the long run, to have historic significance.

I’m very late to the game in reading Johnson’s piece in the NYT. I’ve had it stored in Pocket for far too long. I’m glad I took the time this morning while drinking my coffee to read it. It is very good. It includes many things I think about most; the open web, how tech giants are so important in what the future will look like, and what we can do to mitigate the downsides of them owning the future.

Since 2011, I’ve been asked about Bitcoin and blockchain from time-to-time. My advice to people (including myself) is to recommend people do their own research.

I’ve been buying BTC lately. Partly because the price is rather low at the moment but also partly because I have a completely different goal in 2019. I’m not prospecting. If my wallet’s value appreciates, excellent. If it doesn’t, I don’t care. My goal in 2019 is to use crypto currency (likely Bitcoin or Ether?) to pay for some every day mundane things. My goal is to transact the equivalent of around $10,000 USD in some form of crypto during the course of the year. That could be accepting crypto or spending crypto. It is my hope that by not being a hodlr, and also not trying to get rich, that I will help the crypto financial ecosystem in some small way.

Going back to Johnson’s piece. He writes a lot about the open web and the open protocols that are in place and how on top of those certain companies own things like our identity. He doesn’t quite go so far as to mention the Building Blocks of the indie web but I wish he had. But I think we’re starting to see decentralization on many fronts happen. I think 2018 was a big year for this and I think the shift is only going go accelerate.

I’m not going to make any predictions specifically for 2019 since I believe it will take longer than that. However, with blogging being easier than ever, with Mastodon and indie web protocols, and Solid and many other projects happening – I think we’ll start to see the power of Facebook and Google splinter. Even if it only splinters a little it will be a good thing for the open web.

My indie web goal is to bring my personal site a little more inline with indie web principles. As you long time readers will know, supporting the indie web exhausted me. I gave up. It was too hard. But, the beginning of such things is hard and I should buck up and figure it out. If I do and somehow help make it easier for the next person the web will be a better place.

I recommend reading Johnson’s entire piece.

Understanding Ethereum Smart Contracts

Gjermund Bjaanes:

This post explains how smart contracts work on the Ethereum Blockchain.

Related to my last. This is a good overview of Smart Contracts. Fascinating stuff.

Please don’t try to explain Bitcoin at parties (unless you know what you’re talking about)

Unless you’re drinking your flat whites under a rock, you’re likely seeing a lot of news about Bitcoin, it’s current exchange rate against the US Dollar, blockchain and it’s various applications, etc. You might even be getting sick of hearing about it (or, perhaps you’re sitting there earning hundreds or thousands of dollars per day from it). Either way, I must make one request of you, dear reader…

Please do not spread misinformation about blockchain and cryptocurrency. If someone asks you about these things and you don’t know, say so. They won’t think less of you. Explain to them that you too are interested in these things but that you still need to do more research before you’re willing to explain it to them. They’ll even respect you for being honest. Don’t make it up based on a few headlines or tweets you’ve read. If you are going to try to explain these things to people, especially youth, please dive in and get a deep understanding of some of these more complex technologies before you begin explaining them.

I think I’ve caught myself a few times, in recent conversation, going just a little bit further than my own knowledge and regretting it. I feel I have a fair understanding but I’m nowhere near qualified to teach on the subject. Which is why I’m bringing it up here on my blog. Fortunately, most of the conversations I’ve had about these things are with people that are also devouring every bit of information they can about it – and so I don’t think I pointed them in an incorrect direction. But I think we (the nerds among us) can easily misinform others if we begin to describe blockchain and crypto at parties.

So don’t try. Unless you know what you’re talking about.