So the prompt is to answer one zone, but since I have many issues with Libra I am going to answer the first and then some. Firstly, users expect Libra to solve the ‘double-spending’ problem in a decentralized fashion allowing for quick and easy transactions. Well they lied. Libra isn’t even a blockchain. Validator nodes are roles that are bought and the verification of transactions is thus at most distributed among a small subset of privileged players. The Libra Association under ‘exceptional circumstances and supermajority of the association’ can essentially do whatever they want. Moreover, according to "a technical look at Libra’, it is unclear whether this merkle tree of ledger states is append-only or not, thus leaving the possibility of long-range attacks if a certain number of private keys of the Libra Association are compromised (which is not that many). Since there is no real blockchain, there isn’t PoW, and the consensus algorithm used is PBFT, which can only handle up to 33% bad nodes. One point of social unrest and political power, is the ability of Libra to replace native currencies especially those of Africa since Libra is based on Western European and American financial practices as it is backed by U.S. and Western European companies and low-volatile currencies. If a country’s sovereignty is tied to the control of their money, then the spread of Libra to Africa may pose a threat of digital colonialism.
In terms of access, one reason people gravitate to blockchains is anonymity. However, it is unclear as to whether other wallets besides Calibra, which requires a government ID and is subject to KYC/AML regulations, will be available, thus privacy already seems to be compromised. Moreover, people must ask more fundamental questions like: How many people have facebook accounts and not bank accounts and why do people not have bank accounts? When you ask these questions, you find that 2/3 do not have the money to open an account and 1/3 do not find the need. A quarter of respondents in the same World Bank data stated ‘high fees’ and another 20% mentioned distance impediments. Libra doesn’t solve any of these. Firstly, Libra doesn’t give you money, you have to buy Libra in order to use, which points to the fact that you need to make the initial transfer from cash or some other currency to Libra which requires access to financial institutions like exchanges. Lastly, Libra has stated to provide ‘low fees under normal operations at sufficient capacity’, which essentially translates to “we will charge you accordingly and nothing is guaranteed.” Even worse, another tax may spring up in the form of a rent-based mechanism since the authenticator of an account is the hash of the serialized representation leading to computational efficiency issues as the data of the account grows. So many unanswered questions.
Overall, disappointed with Libra and pretty concerned. People who deposit money in Libra don’t gain interest and instead receive a bunch of unknown transactions and that is if they even get this far considering Facebook is banned in 4 of the 7 countries that host 1/2 of the unbanked adults and crypto is banned in the other 3. Moreover, no companies constituting the association is of local origin to these places of interest (Bangladesh, India, Pakistan, China, Indonesia, etc.). With the Libra Investment token and the association ‘paying out incentives in Libra coin to founding members’ or paying themselves, I am convinced that this fake blockchain with a merkle tree of ledgers that aren’t even hashed (?) and a lack of aggregated signatures to protect validator nodes from DoS attacks, all point to a destructive road ahead. I also believe that Mustafa al Bassan had a good point in regards to secure layer one scalability being a solved problem in quite a few research spaces and Ethereum 2.0 is currently in their implementation stage of such technology. If Libra is hoping to eventually transition to a PoS system, then stating 5 years for the transition allows for research to develop is a blatant lie because Libra clearly didn’t do their research.
Summary: I’m upset ┌( ಠ_ಠ)┘