I wrote a post on Libra's recent development. I think the market is not ready for a coin like Libra. People don't understand its benefits. Regardless, Libra is a coin with potential.
Market is Not Ready for Libra
https://bitflate.org/post/2019/10/25/market-is-not-ready-for-libra.html
Topic: Building Stablecoin: Bitflate vs. Libra (Read 190 times)
Due to the latest news, you may not even have a competitor, because Zuckerberg said that they may withdrawal from Libra completely. Speaking about your stable coin, it looks great but I do not see a point in adding more stables to the market.
I have a different take. I think Libra is too early for its market. Semi-centralized money has a market. People don't understand it yet. Especially, it is tainted by Facebook reputation. However, I think Bitflate probably appears at the right time.
Fiat <==> Bitcoin
Centralized <==> Decentralized
Centralized <=> Pegged/Centralized Stablecoin (Tether, USDC) <=> Semi-centralized Stablecoin (Libra) <=> Decentralized Stablecoin (Bitflate) <=> Decentralized
When people are used to crypto with less price volatility, I think they'd understand Libra.
Due to the latest news, you may not even have a competitor, because Zuckerberg said that they may withdrawal from Libra completely. Speaking about your stable coin, it looks great but I do not see a point in adding more stables to the market.
First of all, I am concerned about the stability of a decentralized coin, what kind of method will you use to keep it stable? I guess it will not be like any other stablecoins, which makes it more useless. I appreciate your work, but instead of losing money, the majority risk losing their identity. So the importance of decentralization is not much, money is more important factor.
Bitflate is an experimental coin. There may be no market for it. I have similar concern about its price stability. It inflates at 7% and rely on the market for price. But I speculate that the market will give it a somewhat stable price.
With system design, there are always tradeoffs. We have two polars: Centralized and Decentralized. There will be markets for different cryptocurrencies. When we swing in either direction, we have to make tradeoffs. This is why I think there is a market for Bitflate. It's filling a gap. I suggest to think of Bitflate as a choice. We know supply inflates at 7%. We may have Bitflate saving account that pays 3-4% interest. Its price won't fluctuate as much as Bitcoin. We can keep most of our saving in Bitcoin and use Bitflate for small transactions. The choice is ours.
I like the project, nicely done!
And the comparaison is interesting
And the comparaison is interesting
Price
Bitflate is a decentralized blockchain. It will inflate 7% per year. The reward and schedule is fixed. We won’t be able to change the coin supply. Its price can be volatile. Although inflation will cause price drop, I predict price would become stable as demand increases. Bitflate price will not be completely stable, but somewhat stable.
First of all, I am concerned about the stability of a decentralized coin, what kind of method will you use to keep it stable? I guess it will not be like any other stablecoins, which makes it more useless. I appreciate your work, but instead of losing money, the majority risk losing their identity. So the importance of decentralization is not much, money is more important factor. Bitflate is a decentralized blockchain. It will inflate 7% per year. The reward and schedule is fixed. We won’t be able to change the coin supply. Its price can be volatile. Although inflation will cause price drop, I predict price would become stable as demand increases. Bitflate price will not be completely stable, but somewhat stable.
It is a bit confusing to think about stablecoins. There are many proposed solutions. There are always constraints in every design. I think it's useful to visualize them on a spectrum. On one side, we have fiat (e.g. USD). On another side, we have Bitcoin. We're trying to bridge the gap between them. The closer we are to fiat, the more centralized we get. The close we are to Bitcoin, the more decentralized we get.
Fiat <==> Bitcoin
Centralized <==> Decentralized
I would put Tether and existing stablecoins close to Fiat and Centralized. Libra is a little more decentralized relative to Tether because it's operated by the Libra Association. I'm working on Bitflate which I think is closer to Decentralized side.
In each design, we have tradeoffs. There is no design that will satisfy all constraints. For example, we can't get both very stable 1-1 and decentralized. I think Bitflate design can get us to somewhat stable and decentralized. Here's how I would place cryptocurrencies on the spectrum.
Fiat <==> Bitcoin
Centralized <=> Pegged/Centralized Stablecoin (Tether, USDC) <=> Semi-centralized Stablecoin (Libra) <=> Decentralized Stablecoin (Bitflate) <=> Decentralized
Fiat <==> Bitcoin
Centralized <==> Decentralized
I would put Tether and existing stablecoins close to Fiat and Centralized. Libra is a little more decentralized relative to Tether because it's operated by the Libra Association. I'm working on Bitflate which I think is closer to Decentralized side.
In each design, we have tradeoffs. There is no design that will satisfy all constraints. For example, we can't get both very stable 1-1 and decentralized. I think Bitflate design can get us to somewhat stable and decentralized. Here's how I would place cryptocurrencies on the spectrum.
Fiat <==> Bitcoin
Centralized <=> Pegged/Centralized Stablecoin (Tether, USDC) <=> Semi-centralized Stablecoin (Libra) <=> Decentralized Stablecoin (Bitflate) <=> Decentralized
I have the different opinion than you, the stable coin doesn't need various technical improvement just like a decentralization or even energy use. That doesn't make sense. The real purpose of libra to be an alternative asset to the fiat currency. that's why the main thing should be to create a comparison between the transparency and what mechanism that will be used by both to keep its stable value.
Look at some stable coin and they don't even need a blockchain to be operated. Tether used ethereum and tron blockchain and that's enough to make it runs smoothly.
What is really needed by stable coin is the regulator approval and transparency.
Look at some stable coin and they don't even need a blockchain to be operated. Tether used ethereum and tron blockchain and that's enough to make it runs smoothly.
What is really needed by stable coin is the regulator approval and transparency.
I'm doing a dive into differences of stablecoins. I wrote an article comparing the design of Bitflate and Libra. Different designs yield tradeoffs.
Original post: https://bitflate.org/post/2019/10/22/building-stablecoin-bitflate-vs-libra.html
Bitflate is a cryptocurrency with a constant inflation of 7%. It’s designed to be a digital native and decentralized stablecoin. Price stabilization is done through inflation.
Libra is a cryptocurrency backed by Facebook. It is managed and operated by the Libra Association, a membership organization of companies and organizations.
In this article, I compare Bitflate and Libra. I also rate the advantages of each cryptocurrency. These ratings are my personal opinion.
Permission
Bitflate is a permissionless blockchain. It is a fork of Bitcoin. Bitflate uses Proof of Work. Coins are generated through mining. Anyone can download the client and verify their transactions. The software is open source and can be compatible with other open source software.
Libra is a permissioned blockchain. Participants need to ratify Libra Association charter and pay membership fees. Users probably will need to go through an intermediary agency to interact with Libra.
I think decentralization is a major innovation of cryptocurrency. People are in control of the currency and can independently verify the system themselves. For Permission, I rate:
Bitflate wins.
Price
Bitflate is a decentralized blockchain. It will inflate 7% per year. The reward and schedule is fixed. We won’t be able to change the coin supply. Its price can be volatile. Although inflation will cause price drop, I predict price would become stable as demand increases. Bitflate price will not be completely stable, but somewhat stable.
Libra is backed by financial assets to avoid volatility. The Libra Association will be able to control its price relative to other assets and currencies. For Price, I rate:
Libra wins.
Energy Use
Bitflate makes use of Proof of Work. So it will consume energy through mining.
Libra is governed by the Libra Association. So it will not need mining and consume energy.
For Energy Use, I rate:
Libra wins.
Decentralization
Bitflate is decentralized. Blocks are produced every 2.5 minutes. Rewards are known ahead of time.
The Libra Association is a consortium of companies and organizations. It is a central authority of Libra. But it is somewhat decentralized as members can vote through its charter. So Libra is somewhat decentralized. I call this model semi-decentralized.
For Decentralization, I rate:
Bitflate wins.
Regulatory Risks
Bitflate is decentralized and digital native. It is governed by consensus similar to Bitcoin. There is no central authority. It can work across border. It is accessible to users anywhere.
The Libra Association is the central authority of Libra. It is founded and headquartered in Switzerland. I think its backers understand regulatory risks. They are sorting through these mundane issues. Governments in Europe and the United States already applied regulatory pressure on the Libra Association.
For Regulatory Risks, I rate:
Bitflate wins.
Mainnet (as of October 2019)
Bitflate is live on mainnet. Miners have been producing blocks and processing transactions. The network expects to reach 50k blocks and 2.5 million coin supply. You can buy Bitflate on exchange.
Libra is facing regulatory pressure. On October 15, 2019, 21 initial members signed the Libra Association charter. But this is only the first step. Libra mainnet launch is not going to happen in the near future.
For Mainnet, I rate:
Bitflate wins.
Conclusion
I think Bitflate and Libra are two categories of stablecoins. Each comes with their own advantages and disadvantages. However, they can both be beneficial to users. I hope both will succeed. I am optimistic and look forward to being able to use these currencies in the future.
Original post: https://bitflate.org/post/2019/10/22/building-stablecoin-bitflate-vs-libra.html
Bitflate is a cryptocurrency with a constant inflation of 7%. It’s designed to be a digital native and decentralized stablecoin. Price stabilization is done through inflation.
Libra is a cryptocurrency backed by Facebook. It is managed and operated by the Libra Association, a membership organization of companies and organizations.
In this article, I compare Bitflate and Libra. I also rate the advantages of each cryptocurrency. These ratings are my personal opinion.
Permission
Bitflate is a permissionless blockchain. It is a fork of Bitcoin. Bitflate uses Proof of Work. Coins are generated through mining. Anyone can download the client and verify their transactions. The software is open source and can be compatible with other open source software.
Libra is a permissioned blockchain. Participants need to ratify Libra Association charter and pay membership fees. Users probably will need to go through an intermediary agency to interact with Libra.
I think decentralization is a major innovation of cryptocurrency. People are in control of the currency and can independently verify the system themselves. For Permission, I rate:
Bitflate wins.
Price
Bitflate is a decentralized blockchain. It will inflate 7% per year. The reward and schedule is fixed. We won’t be able to change the coin supply. Its price can be volatile. Although inflation will cause price drop, I predict price would become stable as demand increases. Bitflate price will not be completely stable, but somewhat stable.
Libra is backed by financial assets to avoid volatility. The Libra Association will be able to control its price relative to other assets and currencies. For Price, I rate:
Libra wins.
Energy Use
Bitflate makes use of Proof of Work. So it will consume energy through mining.
Libra is governed by the Libra Association. So it will not need mining and consume energy.
For Energy Use, I rate:
Libra wins.
Decentralization
Bitflate is decentralized. Blocks are produced every 2.5 minutes. Rewards are known ahead of time.
The Libra Association is a consortium of companies and organizations. It is a central authority of Libra. But it is somewhat decentralized as members can vote through its charter. So Libra is somewhat decentralized. I call this model semi-decentralized.
For Decentralization, I rate:
Bitflate wins.
Regulatory Risks
Bitflate is decentralized and digital native. It is governed by consensus similar to Bitcoin. There is no central authority. It can work across border. It is accessible to users anywhere.
The Libra Association is the central authority of Libra. It is founded and headquartered in Switzerland. I think its backers understand regulatory risks. They are sorting through these mundane issues. Governments in Europe and the United States already applied regulatory pressure on the Libra Association.
For Regulatory Risks, I rate:
Bitflate wins.
Mainnet (as of October 2019)
Bitflate is live on mainnet. Miners have been producing blocks and processing transactions. The network expects to reach 50k blocks and 2.5 million coin supply. You can buy Bitflate on exchange.
Libra is facing regulatory pressure. On October 15, 2019, 21 initial members signed the Libra Association charter. But this is only the first step. Libra mainnet launch is not going to happen in the near future.
For Mainnet, I rate:
Bitflate wins.
Conclusion
I think Bitflate and Libra are two categories of stablecoins. Each comes with their own advantages and disadvantages. However, they can both be beneficial to users. I hope both will succeed. I am optimistic and look forward to being able to use these currencies in the future.
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