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Will Facebook’s Libra Help Bring Cryptocurrency To The Masses?

Will Facebook’s Libra Help Bring Cryptocurrency To The Masses?

When Facebook announced plans for a stablecoin called Libra, the reaction from the cryptocurrency world ranged somewhere between skeptical and cautiously optimistic.

But, regardless of any specific merits of Facebook’s version of a digital coin, the social-media giant’s move could help speed the adoption of cryptocurrency to a larger audience, says Kirill Bensonoff (www.kirillbensonoff.com), a serial entrepreneur and an expert in blockchain.

The biggest issue now is that most people are not familiar with crypto; they think it’s difficult to use, and they may not trust it,” Bensonoff says. “Facebook will put a digital wallet on many phones and computers, and sending payments with crypto will become commonplace.”

Facebook’s Libra is proposed as a stablecoin, which is a form of cryptocurrency. Using Libra, people would be able to buy things or send money to others while paying, at most, minor fees. Unlike other cryptocurrencies such as Bitcoin, the value of stablecoins is tied to an asset such as gold, the U.S. dollar, the Euro or other currencies.

Facebook won’t have complete control of Libra. It’s just part of a bigger group of partners that’s creating the stablecoin.

What might all this mean for the future of cryptocurrencies – and for the average person who still knows little about them? Bensonoff says a few things worth knowing about Libra in particular and stablecoins in general include:

-Bringing stability to cryptocurrency. As the name implies, the idea of stablecoins is to bring more stability – and more peace of mind for wary investors – to the world of cryptocurrency. “I don’t think Facebook will bring stability immediately,” Bensonoff says. “I believe it’s going to take a lot more in terms of mass adoption, but Libra could be a step in the right direction.”

-The SEC’s view. Regulators at the Securities and Exchange Commission have been eyeing stablecoins with the possibility that some of them could be classified as securities. “That could put stablecoins in the same category as stocks, subject to the registration, disclosures, and accreditation of investors that demands,” Bensonoff says.

-Will Libra replace PayPal? Maybe not, considering that PayPay is one of the founding members of Libra, Bensonoff says. “I think they will have some influence on the direction,” he says. “However, crypto in general is a threat to all existing payment processors, including PayPal. I believe PayPal is smart and will adopt and accept crypto payments, and they will figure out a way to monetize it. The downside for them is they won’t be able to charge nearly as much as they do now.”

“I believe Libra is going to have a positive impact in terms of awareness, adoption and interest in cryptocurrency from both businesses and consumers,” Bensonoff says. “But at the same time, with that could come more regulatory scrutiny.”

About Kirill Bensonoff

Kirill Bensonoff (www.kirillbensonoff.com) has over 20 years experience in entrepreneurship, technology and innovation as a founder, advisor and investor in over 30 companies. He’s the CEO of OpenLTV, which gives investors across the world access to passive income, collateralized by real estate, powered by blockchain. In the information technology and cloud services space, Kirill founded U.S. Web Hosting while still in college, was co-founder of ComputerSupport.com in 2006, and launched Unigma in 2015. All three companies had a successful exit.

As an innovator in the blockchain and DLT space, Kirill launched the crypto startup Caviar in 2017 and has worked to build the blockchain community in Boston by hosting the Boston Blockchain, Fintech and Innovation Meetup. He is also the producer and host of The Exchange with KB podcast and leads the Blockchain + AI Rising Angel.co syndicate. Kirill earned a B.S. degree from Connecticut State University, is a graduate of the EO Entrepreneurial Masters at MIT, and holds a number of technical certifications. He has been published or quoted in Inc., Hacker Noon, The Street, Forbes, Huffington Post, Bitcoin Magazine and Cointelegraph and many others.

4 Challenges Blockchain Must Overcome To Achieve Mass Appeal

When most people think about blockchain, they likely associate it with Bitcoin or other types of cryptocurrency.

But the blockchain technology introduced a decade ago to serve as a secure database for transactions in the cryptocurrency world has plenty of uses beyond that – and potential for even more. Around the world, blockchain can be or already has been used in such areas as energy, tourism and financial services.

Yet, plenty of people still have little knowledge of this technological breakthrough that could transform how they do business and live their lives. That raises a couple of questions: Is blockchain ready for the masses? And are the masses ready for blockchain?

“Despite renewed investor interest, blockchain technology still needs to evolve to overcome some challenges before adoption reaches people who are not early adopters or who are not very tech savvy,” says Kirill Bensonoff (www.kirillbensonoff.com), a serial entrepreneur and an expert in blockchain.

Those challenges include:

Interaction with other systems. Blockchain’s growth depends on the technology’s ability to scale and interact with other systems and networks, Bensonoff says. “Right now, blockchain as a service is limited in performance because of slowed transaction processing times and the inability to have various blockchain platforms interact with each other,” he says. Just one way this challenge is being addressed is by developers creating consensus mechanisms, Bensonoff says. Consensus mechanisms refer to how participants in a blockchain network agree that the transactions recorded in the digital ledger are valid. “This mechanism creates a trust and validity in the transaction between participants who aren’t familiar with each other,” he says.

Cost and usability.  The cost of creating and implementing blockchain networks remains a significant barrier, Bensonoff says. One possible solution could be the introduction of cloud-based blockchain technology from tech giants such as IBM, Microsoft and others. “These companies have made cost reduction and scaling the crux of their business offerings,” he says. For blockchain to evolve, the average user experience also needs improvement, Bensonoff says. “The good news is that developers and blockchain companies are catching on, and working to create a more welcoming look and feel for consumers,” he says.

Regulation. If there’s a grey area in the blockchain world, regulation is it, although some states, such as Wyoming, and countries such as Malta, Estonia and Switzerland, are attempting to change that. “In the meantime, this regulatory limbo is affecting adoption, with many waiting for some finality in legislation before they implement their own blockchain solution,” Bensonoff says. As some states pass blockchain bills, hopes are high that others will follow suit, he says.

Privacy. Blockchain’s transparency is one of its strengths – and a weakness. Bensonoff points out that blockchain acts as a public ledger, which is necessary for the technology to provide trust and to verify transactions. But that can make use of blockchain troublesome for some industries, such as healthcare, which needs to protect the privacy of much of its data. Some solutions on the horizon, Bensonoff says, include making use of new developments like stealth addresses, ring-confidential transactions and state channels.

“Blockchain is definitely going to become more useful and more popular,” Kirill says. “But it must overcome these hurdles to get where it needs to be.”

About Kirill Bensonoff

Kirill Bensonoff (www.kirillbensonoff.com) has over 20 years experience in entrepreneurship, technology and innovation as an advisor and investor in over 20 companies. In the information technology and cloud services space, Kirill founded US Web Hosting while still in college, was co-founder of ComputerSupport.com in 2006, and launched Unigma in 2015. As an innovator in the distributed ledger technology (DLT) space, Kirill launched the crypto startup Caviar in 2017 and has worked to build the blockchain community in Boston by hosting the Boston Crypto Meetup. He also is the founder of the Boston Blockchain Angels, producer and host of The Exchange with KB podcast and leads the Blockchain + AI Rising Angel.co syndicate. Kirill earned a B.S. degree from Connecticut State University, is a graduate of the EO Entrepreneurial Masters at MIT, and holds a number of technical certifications. He has been published or quoted in such national business, blockchain and technology media as Inc., Hacker Noon, Huffington Post, Bitcoin Magazine and CoinTelegraph.