Christian Catalini, co -creator of the Libra project now disappeared from Meta, led X to explain how Stripe’s tempo block chain fails one of the basic principles of the cryptographic movement: decentralization.
In fact, Catalini believes that if Stripe’s tempo is commercially successful, it would mean that the first cryptographic idealists will have to adopt a future where the original spirit of decentralization is lost. Catalini used the example of the failure of pound to demonstrate its point.
The failure of pound, what really killed him
Catalini said that in the technology and financial industry, being too early for the market is almost the same as being wrong. In its publication, Catalini wrote:
“Looking back in Libra, the Stablecoin project that I helped to design within the finish line, I can confirm that we were not only early; we were also comically, spectacularly wrong.”
In addition to the unfortunate moment, several other factors contributed to the final failure of Libra. This included the “arrogance of Silicon Valley, the belief that the elegant code can simply want centuries of financial regulation,” Catalini wrote.
In addition, Facebook’s aggressive Libra marketing not only caught more attention, but also provided ammunition to its opponents.
According to Catalini, there is a prevalent erroneous idea that Libra failed because he could not comply with regulatory guidelines. However, the opposite is true, Catalini wrote, adding:
“The reality is that we were about to become the most buttoned and friendly cryptographic project with the regulators on the planet.”
Problems with corporate blockchains such as Tempo
Catalini wrote:
“The problem with corporate chains such as tempo is not a matter of code, it is a matter of incentives. We already know the script.”
This is how corporate block chains usually work: a technology company creates a block chain and promises equity. But after capturing a substantial part of the market, the temptation to tilt the playing field in its favor becomes almost irresistible.
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And “Crypto’s purpose is to break this cycle of broken promises,” Catalini wrote, added:
“It is the same fundamental economic truth that we identify in the MIT almost a decade ago: the only thing that really separates the cryptography of the systems it intends to replace is that it has no permission.”
Libra engineers decided to sacrifice the aspect without permission from the network. Similarly, the network also had to discard its non -custodial wallet plan because regulators would not approve it. Regulators needed to know who to call or when things go wrong, he explained.
“A world where users really control their own money is messy, without borders and does not fit that inherited plan. For them, killing himself was not an choice, it was an obvious need based on the tools they understood.”
How Tempo’s success is linked to the future of the crypto
According to Catalini, if the corporate block chains such as the Testo and the Circle arc are successful, it would indicate that “the cryptographic experiment was not a revolution, but a failed coup d’etat.” This is because, although Backend technology will be different, the market structure will remain “disturbingly familiar,” he wrote.
In fact, Catalini described it as a change of kings, while the throne remains the same: Fintech giants will replace existing card networks and financial institutions. In addition, it meant that markets in the West and the East are probable are controlled by at least two competitors.
Catalini believes that if the disappearance of Libra could be attributed to bad weather, then the success of Tempo is almost inevitable, given the change in the regulatory position. And in that case, “the original dreamers of the cryptographic world may finally have to accept a more pragmatic and centralized reality.”
However, he warned:
“But if the ghost of Libra is a warning about a fundamental truth, that any system with a single architect is based on a fatal defect, then the strip is not writing a new story. It is simply organizing an entertaining and very expensive sequel.”
