Cryptocurrencies are unique in that their users – all of them, in a collective bunch – control how much digital currency is issued, how quickly transactions are verified, and operate independently of central banks. With most popular cryptocurrencies, people can verify transactions using the blockchain ledger, such as with Bitcoin.
Libra is a digital currency – particularly a permissioned blockchain digital currency – for which the idea has been floated by social media giant Facebook. Unlike cryptocurrencies, Libra transactions will ultimately be verified and kept up with by Facebook itself, making the potential new release of a digital currency a pioneer in its space. If Libra grew big enough, in theory, it could become as powerful as a country thanks to its ability to effectively print out money in its digital treasury as it pleases.
As such, there’s plenty of good reason to be worried about Libra, especially when you consider how many privacy issues that Facebook has had in recent years.
Facebook hasn’t been able to get Libra off the ground yet, though several competitors have come to market to beat Libra to the marketplace, effectively drumming up a first-mover’s advantage in the process. Metal Pay’s MTL Coin is the most recently-created competitor to Facebook’s Libra, which should come into use in the next few months.
Metal Pay, a digital currency platform, is headed by Marshall Hayner, who is a cryptocurrency industry veteran who has helped create digital coins and cryptocurrencies among the likes of Stellar and Dogecoin. Although Metal Pay isn’t new, what is new is the idea that Metal Pay and its MTL Coin will be the single most important direct competitor to Libra whenever Facebook decides to release it for use.
Libra is unique in that it is designed for the average Joe – not any tech-savvy people, which are usually the people who are into cryptocurrencies. Libra’s value will be backed by hard assets, something that most digital currencies aren’t backed by, effectively making their value useless.
The central difference between Libra coin and Metal Pay is that Metal Pay is operating on a blockchain that is not centralized right now, which can also be called a digitally distributed public transaction ledger system. Anybody who verifies transactions on the Metal Pay network will get Metal Coin, the base coin behind the Metal Pay protocol. Libra is different in that not many nodes or validators can actually verify transactions.
Dil Bole Oberoi
