/biz/ - Business & Finance

[Anonymous No.14217638]

Libra+Move is unironically great for Ethereum.
There's no way Libra validation nodes are going to ignore an American court order, or even worse, OFAC sanctions.
This limits corporate adoption to American companies only. Nobody else wants even more American control over their foreign company.

Imagine a Russian company buying oil from an Iranian company with the help of Libra smart contracts. Then an European company in turn buying something from the Russian company, whose products are in turn used by an American company.
The inevitable OFAC order happens and both the Russian and Iranian companies are banned, their on-chain assets confiscated. This in turns hurts the European company, which in turn hurts the American company.
OFAC even tried to ban bitcoin addresses:
https://home.treasury.gov/news/press-releases/sm556
there's zero chance they are going to consider Libra immune.

For this reason, corporations do really want decentralization, even if they phrase it differently - "reducing jurisdictional risk" or similar. It's already a chore to vet your partners, but relying on a fully controlled platform requires you to vet your partner's partners, their partners etc. to adequately consider risks, which quickly becomes impossible.
Due to this, Even American companies are unlikely to adopt Libra into their business processes.

Why is it good for ethereum? Because almost every current "ethereum killer" has a similar architecture to Libra, either DPoS or BFT. Libra put them directly in the spotlight: is EOS, Dfinity, Algorand, etc, more resistant to government interference or hostile behavior by validators? Of course not, they are worse in every aspect, especially those with "on chain governance". No DPoS or PoA network has any advantages over Libra; if you are fine DPoS' or PoA's tradeoffs you're going to love Libra. They lost any reason to exist, BTFO by Libra on scalability, adoption and decentralization, BTFO by ethereum on immutability and decentralization.