People may wonder why Facebook has chosen to build their Libra blockchain network from scratch, rather than building on an existing giant like Ethereum, EOS, or even – as was rumored – Stellar. The answer is simple and sophisticated at the same time, depending on how deep into it you want to look.
Facebook Wanted Better Scaling and More Control Than Ethereum Offers
On the surface, it’s simple enough: Facebook wants more control than using an existing decentralized network like Ethereum would allow, necessarily wanting to have the ability to reverse transactions in accordance with financial regulations.
This is an important distinction for the product that Facebook’s working on, as opposed to cryptocurrencies. Even Ripple (XRP) doesn’t offer this type of control to its network participants, but Facebook was recently told that it’s “critical” they find some way to handle undesirable transactions.
That’s the first reason.
The next reason is that Ethereum may not have the scale that Facebook, even as a brand new crypto project, will require.
Ethereum’s scaling has become such a problem that Vitalik Buterin recently floated the idea of utilizing Bitcoin Cash’s ample space.
Therefore, Facebook needs something that can reliably handle more transactions per second. It’s that simple. You can’t offer something to 2 billion people and then only process a handful of payments at a time. You need to be able to handle potentially millions of transactions per second at that scale.
If Facebook had chosen another platform to build Libra on,