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The Libra Ecosystem (5): Strategic moves

In part 1 and part 2 of this blog we saw that the members of the Libra Association all keep a copy of the database of Libra accounts and execute Libra transactions world-wide. The Association manages a Reserve of stable and liquid assets to support the value of the Libra. Part 3 explained the central […]

The Libra ecosystem (4): Business model

In the first three parts of this blog I discussed how the Libra appear to its users, how the Association governs the Libra, and what the role of Facebook and its subsidiary Calibra is.  In this part I will present a business model for the Libra ecosystem, which summarizes what we know so far about […]

The Libra Ecosystem (3): Facebook and Ca...

In part 1 and part 2 of this blog we saw that the members of the Libra Association all keep a copy of the global database of Libra accounts and transactions and execute all Libra transactions on this database. They manage a Reserve of stable and liquid assets to support the value of a libra. […]

The Libra Ecosystem (2): The Libra Assoc...

In part 1 of this blog we saw that the Libra Association is a collection of organizations that all maintain a copy of the Libra database. This database contains the Libra accounts of all Libra users world-wide, and a trace of all Libra transactions. If a user sends libras to another user, all Association members […]

The Libra Ecosystem (1): What users shou...

The announcement of the Libra by Mark Zuckerberg in June this year has triggered an avalanche of comments.  All comments have focused on particular aspects of the Libra, such as its financial, technical or regulatory aspects. But we need a view of the proposed Libra ecosystem as a whole. According to Zuckerberg, “Libra’s mission is […]

Value Creation, Value Extraction, and Ec...

The online economy contains a paradox that we do not yet know how to resolve. Simply put, the paradox is this: Startups create value for their stakeholders, but if they are successful, they become monopolists who extract value from their customers. Take Uber as an example. Initially, it created value for drivers because it offered […]

What is Your Ecosystem? The Ecosystem Ar...

Product innovation usually causes a change in your ecosystem. When music became downloadable, this disrupted the market for CDs and DVDs and created a new ecosystem for downloadable music dominated by iTunes and Amazon. The current move from combustion engines to electric vehicles reconfigures the ecosystem of car manufacturers, as new suppliers become relevant for […]

Lessons Learned from the Rise and Fall o...

15 min read   The rise and fall of Bitcoin tells a story of greed, hope, disappointment, and fear. Bitcoin supporters aimed for a decentralized world in which payment is as simple as sending an email. They forgot that even the bitcoin network interfaces with the real world. The history of Bitcoin illustrates that to […]

Deconstructing bitcoin

7 min read Do you need a blockchain? There are several checklists to help you decide whether or not you need a blockchain. The most recent one is the Blockchain Technology Overview published by the NIST in October 2018. Others are discussed in a recent blog by Chris Hammerschmidt. All of these checklists ask whether […]