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Of cryptovia, blockchains and facebooks new preservation libra
A ghost is about in the financial world, and this time it is not the communism that puts the money-establishment in anxiety and terror. The ghost today is called "Crypto" and it threatens the established power structures in the global financial industry. Approvals with the Communist Manifest are borrowing on the salvation promises, which we are horched by the examinaries of the new digital requirements: overflow of the traditionally intransparent, corruption-eventful and completely uberuced business model of the banks, more democracy in companies and in the state, fairness in global trade, enforcement Social justice, to a prosperity turbo booster for the poorest of the world.
Of course, it is not political idealism with the aim of creating a fairer society that drives the current hype around Bitcoin and other cryptovations. Rather, it is the same exclamation, which in exactly the year in which Marx and Engels announced the coming of communism, from San Francisco: "gold! gold! Gold from the American River!"
Call of fast money
It is the reputation of the rapid money, which has also lost nothing of his effect in 170 years after the California gold rush. Who can already ignore that here many millions can be pushed? Only that today you do not have to travel thousands of kilometers to the new gold today "stuff", but only needs to go to the internet.
"Stuff", So it is actually called to seek new bitcoins with the computing power of his own computer (which consumes a total of electricity and load the global CO2 balance — this a little adequate and blus side aspect of Bitcoin).
And already after the fulminant Krypto crash of 2018, which was just the unsuspecting, which were driven to the completely unregulated and often anything but transparent bitcoin borse, 80% of their use lose a new hype. In fact, anyone who wants to create his own digital currency. Meanwhile, there are more than 2000 of it, with names like Ripple, Stellar, Golem, Funfair, Hallowencoin or Snakeeeyes sound like Ecstasy varieties 20 years ago.
Here memories of the noble munz manual law in the Middle Ages are awake, with which every noble, who was said to practice this, his own munizontal. What comes to this: Krypto currencies are ideal for criminal machinations: money laundering, slideshow by hackers, misappropriation, arms trade in the Darknet, etc. — For all this, cryptovals are ideal. They are the monetary equivalent of the Darknet. One of many examples is the Kryptoborse Quadrigacx, whose land contested the deposits of his customers in the scope of several hundred million dollars for his private purposes.
Elimination of the intermediaries
Holding "Blockchain", The technology that is behind Bitcoin actually the potential for a technological paradigm shift. It was able to eradicate a major group of central agents in the global economy, the so-called intermediaries. Today, institutions such as banks, bores, notaries, book-making companies and numerous state institutions (eg.B. Central banks, taxabilities and regulators) a rough part of our economic life.
They stand for a central condition of the smooth running of any economic action: trust. Banks guarantee money enhanced, one "Banknote" is a value store that (usually) is reliable. A notary guarantees the legal reliability of a contractual agreement, central banks that the paper tickets in my hand own a value. State authorities ensure that the rules are adhered to in international banking business. They are all "Agents of trust". The blockchain technology allows for new opportunities for confidence in business and trade. Probably the most prominent example is the new and decentralized way to define the central unit of economic exchange: the money. With blockchains, payments can be made without requiring confidence-creating central bank or state preservation.
The functioning of blockchains is as easy as driving a business journal, only with much more and decentralized and global administration: Blockchains are electronically stored journals ("Blocks"), which — therefore the name — chain-shaped and for everyone visibly stored on many computers at the same time. The ownership of the money corresponds to the possession of a secret digital substrate, which ensures access to the credit in a separate digital wallet. This is then used when the money should be transferred differently in order to pay anyone. Such a transaction is then entered in the blockchain.
While we have to trust in the usual payment transaction of a bank or any other mediating instance that guarantees the security of the transaction, this is the task of the Community of all involved in a blockchain. A payment will be approved by the majority of the participants upon presentation of the correct key. Corrections on the system are only possible if the majority of those involved agrees. Due to the high number of participants this is hardly possible after a short while. Specifically, nobody can spend a bitcoin twice. The occurrence of the blocks into the blockchain take decentralized nodes, which their owners are paid out (this is the case with the bitcoin blockchain; there are other models): they receive new truth for their activity. That’s the mentioned "Stuff" New Bitcoins.
Blockchain technology has been able to post economic transactions and organizations on a whole new basis. Money, as we know it today, could even disappear completely. The lawyer who buys a bread at the backer pays with a direct transaction, for example with his mobile phone, which is then booked immediately in the blockchain. For its part, he preserves his own work services from his customers directly to his digital account. Money as an intermediary of various economic objects and their buy and sell it no longer needs.
Libra — neither open nor public, not censor-resistant, unacceptable, neutral or limitless
So it is no wonder that this technology has now reached Facebook: with "Libra" the company wants to create its own cryptography and replace paper money and even credit cards in many applications. The goal of Facebooks is to create an efficient payment system that can use the owner immediately and directly via apps on their mobile telephones. This includes the transfer of money to friends or family members, the payment of handlers for services or goods and the replacement of cash in the regions that have no access to banks.
The sticking point is: Libra is not a real blockchain preservation, has neither blocks nor chains. Instead of working like a conventional distributed ledger, as explained above, Libra uses a single data structure that uses all transactions and over time (centrally!) recorded. These are validated over a network of 27 companies, including well-known names such as Visa, Mastercard, PayPal, eBay, Uber and Vodafone. This libra lacks the funf-central properties of blockchains: it is neither open nor public, is not censor-resistant, unacceptable, neutral or limitless.
That’s exactly what critics calls on the plan. Finifully Facebook has changed a name for fragmental privacy practices. For example, the Banking Committee of the US Senate has already been procured with the tarpaulins for Libra and held an appellation to acquire its potential impact and regulatory concerns. And Randal Quarifs, Chief of the Supreme Oversers of the International Financial World says that a broader use of new types of cryptovals such as Libra for the mass pay traffic requires an accurate examination by the resistant. So you are not completely critical without reason.
But although Libra is created by one of the most fragheart companies, it could be a milestone in order to make crypt at a broad-accepted technology.
The contribution of Lars Jaeger first appeared on his website Larsjaeger.ch. Jaeger is a Swiss-German entrepreneur, scientist, writer, financial theorists and alternative investment managers. He studied physics and philosophy at the University of Bonn in Germany and the Ecole Polytechnique. He acquired his doctorate in theoretical physics in studies at the Max Planck Institute for Physics Complex Systems in Dresden, where he also undertook Post-Doc studies. Lastly, the book appeared from him "The second quantum revolution: from the hospital in microcosm to new super technologies".