Blog

Positive Developments for Cryptocurrencies and Blockchain Continue

Facebook to Launch Its New Cryptocurrency in 2020

After months of public speculations about Facebook’s plans to get into the Blockchain space, Facebook officially announced that it is launching a cryptocurrency in 2020 called Libra.  Although Facebook is building Libra, eventually it plans to cede the project to a larger community. The company has formed the nonprofit Libra Association with 27 other partners to oversee Libra and its development. The partnership includes venture capital firms, nonprofit organizations, crypto firms, and massive corporate financial, telecommunications, and technology service providers, including Coinbase, Mastercard, Visa, eBay, PayPal, Stripe, Spotify, Uber, Lyft, and Vodafone.

Unlike other cryptocurrencies, the value of the Libra currency will be backed by a basket of major currencies similar to the IMF’s SDR currency. Facebook is also developing a wallet for Libra called “Calibra” and plans to integrate sending and receiving Libra tokens into its WhatsApp and Messenger apps where it can be used by its over 2 billion global users.

Facebook’s Libra currency will be in competition to Bitcoin, which is currently the dominant cryptocurrency. Facebook’s recent announcement may have helped the Bitcoin price recently reach $13,000 for the first time in over a year.

Google Targeting Enterprise Use Cases

While Facebook is focusing on consumers, Google on the other hand may be targeting enterprises to use Blockchain with its recent partnership with Chainlink. Chainlink helps applications integrate a smart contract layer that connects to other blockchains, off chain  channels such as Lightning network or other third-party APIs such as the Visa payment network.  Google's partnership with Chainlink will allow Ethereum app builders using Google software to be able to integrate data from sources outside the blockchain.

DocuSign Integrating Smart Contracts

DocuSign, which provides digital signing of documents as a service, is working with Clause, who are competitors of Chainlink. Both companies provide means of integrating smart contracts with applications such as DocuSign. DocuSign’s increasing efforts of integrating “smart contracts” into its suite of digital signing applications indicates a growing adoption of “smart contracts” by larger companies with sizable user bases.

Cadence Uses Blockchain to Provide Commercial Loans

A company called Cadence, backed by Coinbase Ventures, recently unveiled its securitization platform that allows individual accredited investors to participate in the providing of commercial loans to small to medium-sized enterprises that would otherwise only be available to institutional investors. Cadence also uses smart contracts based on Ethereum which is another example that indicates “smart contracts” are starting to emerge as one of the leading applications of Blockchain besides cryptocurrencies.

Overall, there has been some good news for Blockchain and cryptocurrencies over the past two weeks with the launch of Facebook’s Libra token and major enterprise adoption and integration of “smart contracts” into mainstream applications.

Nelson Ijih

Chief Executive Officer