Libra would even allow the unbelievers to shop online.
Chances are that if you are a trader and sell goods via Facebook, you have heard about Libra. Libra is currently one of the most popular topics around the world, where everyone, from politicians to the general public, discusses his incredible potential.
If everything goes according to plan and Facebook manages to get Libra off the ground, companies and traders have an incredibly powerful tool at their disposal to increase sales and increase their profits.
Let's meet Libra.
For the uninitiated, let's take a look at Libra and investigate what it is exactly and how it can help entrepreneurs to captivate their Facebook stores. Libra becomes a digital currency that is supported by financial assets and US Treasury securities, meaning that it is not volatile like other digital currencies.
This is a crucial aspect for traders, as no one wants to accept two Scales for their goods and services, but only a few minutes later discovers that the customer has paid too little due to the volatility. Unlike Bitcoin, Ethereum and other digital currencies, Libra will be stable in its price and not undergo major fluctuations.
Secondly, Libra lets everyone become their own bank, even if they don't have a bank account. Imagine a world in which you as a company can accept digital payments from 2.41 billion Facebook users. Libra enables people to become their own banks and make their own financial choices. This newly found financial freedom allows people, including unpaid banks, to access a world of lightning-fast payments that cost a fraction of what traditional payments do.
There are a few concerns about Libra.
As with any new technology, there are some concerns about privacy and compliance. Yes, Facebook was involved in a huge data scandal with Cambridge Analytica, but that's history. Facebook's blockchain leader, David Marcus, has testified that Libra will respect privacy legislation and has detailed the way in which data is processed.
Blockchain technology, the technology that drives Bitcoin and one day Libra is a pseudonym, meaning that the identity of a user is never exposed to the public. That said, external developers who create portfolio services on the Libra blockchain will be forced to implement your client (KYC) and anti-money laundering procedures (AML) to comply with the law.
You go through the same process when registering for a bank account or when opening an account with a financial adviser. It is a common practice. Libra does not have access to this data and the external wallet providers will securely encrypt the data.
Are today's AML tools sufficient to prevent shops from becoming a hub for money laundering?
The question is for everyone, will these KYC and AML procedures be sufficient to protect my reputation? The short answer is yes. It is exactly the same process that banks are currently using, so Libra is just as secure and free from illegally obtained money as accepting a Visa or MasterCard transaction. Libra will, in any case, be safer and help companies ensure that all transactions are legitimate. A range of business solutions is available that Libra can use to implement advanced KYC and AML procedures.
I recently had the pleasure of working as a consultant for Oracle Financial Services. I was a contributing author of their e-book, which will be published at the end of the year on money laundering. I was impressed by what the company does in this space.
Oracle Open Graph Technology is an example of one powerful solution for digital currency flows, such as Libra, that cannot be protected against machine learning using traditional AML technology. Modern tools such as graphic technology that Oracle has innovated from its lab may be the answer. There is a huge demand for banks of all sizes to analyze financial data more effectively than AML-based technology allows.
I sat down with Jason Somrak, CAMS, Chief Financial Crime Consultant at Oracle, and he said: "Graph analysis is the most important technology that allows effective monitoring of digital currencies. It allows researchers to not only visualize networks, but crypto - Graphs can easily be expanded with datasets such as those built by MIT to identify illegal transactions and the ultimate beneficiaries of portfolios, then deep learning can be applied to these super graphs to find all similar illegal patterns and identify segments of how groups of users behave in the currency. "
Allowing scales to track relationships between pseudonymous accounts and detect anomalies with questions and algorithms, so that companies are able to take a proactive and preventative approach to money laundering, is crucial. By keeping the Libra ecosystem free from corrupted money and accounts that automatically break the law, companies will ensure that they have a way forward in dealing with bad actors or are confronted with government inquiries.
Here is an Oracle presentation with graphic technology in the Bitcoin blockchain that gives a visual representation of how financial crime is combated with technology.
Can Facebook really bring unpaid to online stores?
Facebook is used by more than 2.41 billion people around the world, including people from some of the poorest countries in the world and people who don't have access to a bank account. Facebook gives them the chance to join the digital world and gain access to an abundance of new digital goods and services, all made possible by Libra.
Libra will initially contact the bankers and help them create accounts so that they can enjoy the world of online shopping. This will be a game-changer in the sense that Libra is actively helping to bring 1.7 billion people without a bank to the Facebook market. This is an incredible amount of potential new customers that e-commerce companies can serve immediately.
Alternatives are available.
Facebook stores are already incredibly popular and have served billions of customers since their launch. But there are still a few sellers and consumers who have problems with Facebook and Libra about problems with data from the past. For those who are still scared, there are a number of alternative solutions available.
Decentralized marketplaces work in the same way as the Facebook stores, except that no entity has any power over your store. For more information, I sat down at the CMO of such a startup called Particl who said: “We allow companies and traders to create their own decentralized stores and share these stores with customers. Particl does not generate revenue from suppliers and does not store data on any store - transactions are masked using advanced coding technologies that make transaction data untraceable and uncoupled on the blockchain. "
The Particl Marketplace offers its users 100 percent privacy thanks to the distribution network. Moreover, the Particl network is incredibly cheap to use. The rates are miniature, allowing sellers to save a fortune on listing costs and sales commission. For the time being, Particl only allows sellers to accept its original token, PART, but the privacy benefits are worth it.
Finally, when it comes to blockchain technology, Zero-Knowledge Proofs (ZKP) makes it possible to validate transactions without revealing the identity of the users involved in the transaction. Just like anonymous systems, ZKP validates blockchain transactions without revealing the details. I contacted the CEO and founder of QEDIT, Jonathan Rouach, for comments and he said: “ZKP is crucial for the digital infrastructure that is being built for the next 50 years. QEDIT plays a central role in making ZKP scalable, standardized and accessible for the infrastructure we rely on for everything digital, from identity management to distributed digital assets, supply chain and more. "
People are increasingly worried about sharing their data with software companies, but they want to use the software for free. As a result, users choose to share data. Nowadays, however, with all technological advances, there are new boundaries where data is openly shared in an encrypted manner so that everyone can enjoy the benefits of big data.
Conclusion.
Libra and Facebook are a huge opportunity for entrepreneurs to expand their global reach and customer base. Although it may cost around $ 50,000 to set up your business wallet with Libra, but the potential and power that it offers sellers is unparalleled. If Libra could handle AML, KYC, and privacy in a meaningful way, we could see the Libra network flourish as the banks embrace this new technology.