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Will Libra Really Bring the Climax of the Blockchain World?

7/4 QuarkChain Founder and CEO Dr. Zhou Joined Online Discussion about Libra

When Facebook released its Libra whitepaper on June 17, this big news was spreading rapidly amongst different parties, building up the momentum and theories around the topic. For the practitioners of blockchain, it is a piece of good news for the industry which makes blockchain popular among the public. As for the internet giants and financial magnates, Facebook opens a magic door to the new world which draws their special attention.

It’s a long- term “war” for Libra. Five house lawmakers requested clearly Facebook a halt to the development of Libra, claiming that Libra would endanger US dollars. At the same time, the partners of Libra didn’t show their strong wills. Until lawmakers take their time to sort out potential ramifications of Facebook’s intended actions, the future of Libra is yet to be discovered.

On the night of July 4th, Dr. Qi Zhou, founder, and CEO of QuarkChain joined in a roundtable that organized by Bitalk, and shared his opinion about Libra.

Q1: Node Capital and Binance are thinking of becoming nodes of Libra. Will QuarkChain consider to participate in the Libra community? What requirements are needed to become nodes of Libra? What are the advantages and disadvantages?

QuarkChain hopes to cooperate with Libra in the field of public chains’ technology so that we can learn from each other.

Actually, QuarkChain is uniting with our partners and investors to join the network of Libra. As you can see, Libra’s 100 node plan is to gather all the top resources in the world together, including giant enterprises, large funds, leading blockchain companies and so on.

$10 million is just an admission ticket, Facebook also has technical requirements and certain evaluation criteria for the privilege of running a Libra node. For example, the companies should be the top 500 enterprises, the funds should have at least an asset of $ 1 billion. As for QuarkChain, we are a fundamental public blockchain and we have reached an impressive TPS and realized a high level of decentralization. We hope to cooperate with Libra in the field of public blockchains’ technology. Early last year, we proposed a cooperation plan to Facebook and got some feedback from Zuckerberg.

Libra aims to use blockchain-like technology to serve 1 billion people but it is not realized at the moment. On the contrary, QuarkChain has come up with our blockchain technology solution. I believe join in Libra plan could give QuarkChain a chance to cooperate with great business partners and participate in the community governance, which is a good way to learn from them.

Q2: EOS’s nodes selection in 2018 was as competitive as the US Presidential Election. Will Libra’s nodes selection be more competitive? Libra’s partners seem to show a lack of confidence. Why is that? What’s the partners’ concern?

I’m not quite sure that the announced members of the Libra Association will remain with the project permanently.

There are two key issues that they may concern. In the first place, the laws and regulations are unclear. House lawmakers requested clearly Facebook halt development of Libra, Claiming that Libra would endanger US dollars. Secondly, the business model of Libra is threatening its partners like visa, MasterCard and PayPal. They all have developed their technology in the blockchain field. I’m not quite sure that the announced members of the Libra Association will remain with the project permanently. Maybe they just participate to take a look and adopt advanced technology. In other words, they may bail out anytime.

Q3: Facebook isn’t the first traditional giant corporation to launch a digital coin, JPMorgan had done that before. However, Libra brings a more dramatic and explosive influence than any others. Why does Libra have such a huge impact and what is the significance?

Blockchain + Facebook+99 top resources will bring a huge influence.

As far as I know, JPMorgan’s coin aims at 2B and the influence to the public is slight. Libra, however, aims at the public to reduce their financial cost, which is quite ambitious. It has a tremendous impact on the public, especially to the people in the third world countries who have no bank accounts, the “unbanked ”people. Even not everyone uses the US dollar.

What the blockchain lacks most is the popularity and recognition among the public. In this way, the combination of blockchain, Facebook and 99 other top resources will bring a huge influence.

Q4: It seems that people pay much attention to Libra because it’s launched by Facebook. Let’s take a look at Libra itself, what’s the innovation Libra brings in aspects like technology and community governance? Libra is defined as a stable coin, in fact, there are 61 kinds of stable coins now. What are the advantages and challenges of Libra?

The technology innovation of Libra may not be strong enough to support its ambition.

Most of the public blockchains are like a permutation and combination made of the following four factors: consensus mechanism, ledger model, transaction model, and token economy. It’s impossible to serve 1 billion people’s need of blockchain considering TPS, not to mention the growing needs of ledger and transaction in the future business world. QuarkChain has proposed a more comprehensive solution by adding sharding to support the four factors mentioned before.

In addition, Libra claimed that it’s a stable coin, in its official announcement, it’s a low-volatility coin, but it’s not a 100% stable coin. There are many topics we can talk such as the percentage of asset allocation, the fluctuations of price. This could be an advantage while at the same time, it may also bring challenges, such as the interesting relationship, the allocation of the asset.

Q5: Every time when a giant company steps into the blockchain field, it draws global attention. It makes blockchain technology more popular but also brings challenges for the blockchain programs. How will you meet the challenges?

Libra is more like a “no coin” blockchain.

We also agree that it brings great opportunities. On one hand, the anticipation of tradition institutions brings more users and offers us an opportunity to see how they think of the blockchain industry. On the other hand, I believe that Libra is more like a “no coin” blockchain. Different from most others, its digital coin doesn’t involve mining, ICO or governing. The challenges that Libra and BTC bring are not the same in terms of challenging original blockchain. Libra said that five years later, it will evolve into the permissionless blockchain. In this way, it is natural to launch a coin. Before that, the original blockchain programs still have big opportunities.

Thank you for reading this event report, if you have any questions, please contact us through the official social media channels.

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