While Facebook’s upcoming cryptocurrency Libra struggles to keep partners on board and regulators happy, an alternative called OpenLibra is here to address some of Libra’s potential shortcomings.
Announced at Ethereum Foundation’s Devcon 5 conference in Osaka, Japan, OpenLibra is described as an “open platform for financial inclusion,” with a telling tagline: “Not run by Facebook.”
OpenLibra aims to be compatible with Libra in a technical sense, meaning someone building an app on the Libra platform should be able to easily deploy it to OpenLibra as well. OpenLibra’s token’s value will be pegged to the value of the Libra token.
But while Libra will be a permissioned blockchain (meaning, roughly, that only permitted parties will be able to run a Libra node), OpenLibra will be permissionless from the start. There’s an important difference in governance, too. Libra will initially be run by a foundation comprised of up to a 100 corporations and non-profits. It’s not entirely clear how OpenLibra will be governed, but the 26-strong “core team” of the project includes people related to cryptocurrency projects such as Ethereum and Cosmos.