Facebook’s Calibra Team Introduces A Novel Distributed Audit Protocol

Facebook’s Calibra Team Introduces A Novel Distributed Audit Protocol

Facebook’s Calibra team introduces a new protocol for distributed auditing of assets that could have saved Mt. Gox.

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In a recent presentation at the 3rd ZKProof Workshop, the Calibra research team presented Distributed Auditing Proofs of Liabilities, or DAPOL, protocol designed to make improvements to the existing distributed audit procedures.

The team led by Konstantinos Chalkias, contends that their protocol builds upon and improves existing methods by introducing additional optimization and enhanced privacy. It allows entities to undergo a distributed audit of their liabilities and it works in any situation where an entity does not have a motivation to overstate its liabilities. The latter is the reason why DAPOL cannot be used to audit assets. 

For example, a crypto exchange could use it to let the community audit its liabilities. It could also be used for “negative” voting cases, such as transparent reporting of negative online reviews or reporting of offensive content in social networks. 

Mt. Gox — Enron

According to the team, their method has considerable advantages over both traditional auditing techniques and existing decentralized methods. When an entity gets audited by a third-party, it will typically focus on the few big accounts and may overlook many smaller ones. 

One of the DAPOL’s main advantages over existing distributed methods is enhanced privacy:

“Notably, it does not expose the number of individuals who are included in the aggregate totals or the number of people who verify their inclusion in those totals.”

Had Mt. Gox users had access to a similar tool, perhaps, its downfall could have been avoided. It is possible this new protocol could have even saved the company, provided that there was really no corruption on the part of the management

In his post, Chalkias alludes to the Enron case, where the auditor, Arthur Andersen, colluded with the company it was auditing to cover up its misgivings. He contends that the combination of a third-party and decentralized audit could have prevented the ensuing collapse of both Enron and Arthur Andersen.

Everyone becomes an auditor

One of the DAPOL’s key features according to the Chalkias’ LinkedIn post is that it allows everyone:

“To participate in the proof verification and at the same time it provides an extra automated validation tool that didn’t exist previously.”

The Calibra Research team provided an example to Cointelegraph of how this could work in practice:

“Using this technology, the proving entity — for example, a bank or an exchange — would publish its total liabilities as an aggregated signed encrypted value. This encrypted value is computed by adding the balances of every individual. Each individual whose balance is included in the total will receive a unique “ticket” to verify their inclusion. Using this “ticket,” individuals privately learn if their balance is included in the reported number. If it is not included, they can provide cryptographic evidence for dispute resolution.”

The Calibra Research team is not sure if and how DAPOL would be implemented within the Libra project, but they do believe that it will have a profound impact on numerous domains:

“We believe there are numerous domains where DAPOL could be useful, including blockchain wallets, finance, e-voting, economic data, and even public health.”

The team expects to make their code open source soon. They are currently soliciting feedback from the cryptographic and zero-knowledge-proof communities. The code is open to additional collaborators who can help move the project forward.

Recently, one of the project’s research teams published a paper that proposes a new method for testing Byzantine fault tolerance. Although pressured by the U.S. government, Libra has been forced to retreat, pivot, and compromise on its original vision, the research conducted by its well-financed teams may still end up benefiting the larger crypto community.


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Facebook’s Calibra team introduces a new protocol for distributed auditing of assets that could have saved Mt. Gox.

Australian Financial Regulator Could Oversee Facebook’s Calibra Wallet

Australian Financial Regulator Could Oversee Facebook’s Calibra Wallet

The Australian Prudential Regulation Authority proposed a fintech regulatory framework that would have it oversee Libra’s corresponding Calibra wallet

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The Australian Prudential Regulation Authority (APRA) is seeking to oversee stablecoin projects like Facebook’s controversial stablecoin Libra.

In an official proposal to the Senate published on Jan. 20, APRA submitted a possible regulatory framework dedicated to fintech and regulatory technology (regtech) covering topics ranging from digital wallets to data protection. 

The proposed framework, “is intended not only to be fit for purpose for the current financial system but also be able to accommodate future developments and technological advances, such as proposals for global stablecoin eco-systems that have been the subject of significant attention in recent months.”

Overall, APRA admits that digital wallets are an increasingly important part of the financial system thanks to the growing popularity of mobile applications and online purchases. Still, the regulator sees two distinct types of digital wallets:

“Some, but not all, digital wallets hold stored value on behalf of customers and are pre-paid facilities. Others (such as Apple Pay) hold customers’ credit/debit card details and only facilitate payments from that nominated account.”

In the paper, APRA states that it would oversee digital currency wallets that are widely used for payments and value storage, such as Libra’s corresponding Calibra wallet, while excluding wallets that are mostly used to pass payments through, such as Apple Pay. 

For wallets that actually hold the user’s value, APRA has started developing a new principles-based prudential standard to simplify the regulatory requirements for new types of fintech businesses.

Data-driven regulatory approach

The regulator also claims that its data collection efforts provide opportunities for regtech to support the industry. 

APRA is collaborating with multiple other government agencies to develop a data governance approach. To facilitate this effort, it has set up a standing committee with the Reserve Bank of Australia, Australian Bureau of Statistics, Australian Securities and Investments Commission and Treasury to coordinate data collection activities across different agencies.

APRA’s collected data will be processed through an “end-to-end platform that allows improved analytical ability.” The regulator also set up an Innovation Lab dedicated to developing its data science capabilities using artificial intelligence, machine-learning, network analysis and natural language processing. 

Regulators are slow to soften on Libra 

Lawmakers have responded harshly to the Libra stablecoin’s debut and subsequent efforts to gain approval in different jurisdictions worldwide. As Cointelegraph reported at the end of December, Switzerland’s President Ueli Maurer said that — in its current form — Libra has failed and will not be approved, because central banks will not accept an asset backed by a basket of currencies. 

Still, the parties involved in the Libra are still actively pursuing its development despite regulatory malcontent. Recently, the Libra Association — the governing body of the stablecoin — announced that it has formed a new committee to guide the network’s technical development.


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The Australian Prudential Regulation Authority proposed a fintech regulatory framework that would have it oversee Libra’s corresponding Calibra wallet

David Marcus Says Calibra Is Considering Audits to Prove Data Protections

David Marcus Says Calibra Is Considering Audits to Prove Data Protections

David Marcus said that Facebook and Calibra have built strong protections from one another in regard to personal data sharing, and is seeking an auditor to prove it

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Calibra cryptocurrency wallet CEO David Marcus spoke at the New York Times Dealbook Conference in New York City where he discussed the worldwide regulatory scrutiny the stablecoin project continues to face, among other topics.

Calibra is considering an auditor for personal data practices 

On Nov. 6, the co-creator of Facebook’s Libra coin had a sit-down interview with Andrew Ross Sorkin of the New York Times and CNBC. 

In response to an audience member’s question about personal data privacy and protection, Marcus said that Facebook and its Calibra wallet would not intermingle personal data from the social platform and financial data from the cryptocurrency wallet. He said: 

“We have built very strong firewalls between Calibra and Facebook in such a way that if you’re on the Facebook side, no one can have access to that data.” 

Marcus added that Calibra was investigating whether the separations between itself and Facebook could be audited “so that we can actually ensure that there’s third parties monitoring that.”

Regulators worldwide have expressed concern over how safe customer data would be when using Facebook’s proposed Libra stablecoin, for which Calibra would serve as a wallet. Data protection watchdogs in the United Kingdom and Switzerland, as well as United States representatives, have all sought information from Facebook in this regard.

Understanding Libra is “not trivial”

Marcus initiated the talk by saying that he expected the global regulatory scrutiny “almost as it actually happened.”

Marcus explained that he knew there would be a strong pushback by regulators, as understanding Libra’s design is “not trivial.” He said that it requires a significant investment of time to understand the separation of the Libra Association, the Calibra wallet and Facebook.

Marcus stated that Libra is designed to operate as a payment system to enable people to access modern financial services and digital money across the globe, “not as a thing to take over the world and to control all.”

Bitcoin is not a currency

Marcus also stated during the interview that Bitcoin (BTC) is like digital gold, and that he does not think of BTC as a currency. He said:

“I don’t think of Bitcoin as it’s actually not a great medium of exchange because of its volatility.” […] I see it as digital gold.”

Marcus added that people can hold on to BTC as an investment just as with actual gold, but that Bitcoin’s volatility makes it impossible to be used as a means of payment by those who cannot afford a 10 or 20 percent drop in a day.  

The main reason that Bitcoin has not been regulated out of existence, according to Marcus, is because regulators do not perceive Bitcoin to be a medium of exchange, and therefore a threat to their monopoly on monetary policy.

Additional reporting by Aaron Wood


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David Marcus said that Facebook and Calibra have built strong protections from one another in regard to personal data sharing, and is seeking an auditor to prove it

Facebook’s Calibra Exec: Libra Is More Like Email Than PayPal

Facebook’s Calibra Exec: Libra Is More Like Email Than PayPal

Libra is an interoperable protocol like email, not a payment service like PayPal, Calibra’s VP of product says

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Facebook’s crypto project Libra will be more similar to email tech than payment services such as PayPal, vice president of product at Calibra said.

Speaking at the Web Summit in Lisbon on Nov. 5, Kevin Weil, vice president of product at Facebook’s Calibra digital wallet unit, emphasized that interoperability — the basic principle of email — will the key concept of Libra.

“A journey of years and decades”

Noting that any global developer or entrepreneur can build wallets for Libra, Weil encouraged the global community to collaborate on the interoperable protocols. He said:

“You and me don’t have to collaborate on which email provider we are going to use before we send each other an email. We don’t have to choose which browser we are going to use tailored to which individual website you’re going to go to. These things are protocols, and as long as you build to the protocol everything’s interoperable. Libra is the same way.”

Considering the approximate timing for the Libra’s launch, Weil said that “this will be a journey of years and decades.” As reported by CNBC, Weil expressed confidence that the social media giant’s cryptocurrency will not go viral like a social network. Weil also stressed that users’ financial data on Calibra will stay separate from their social data on Facebook.

Non-members could still use Libra platform

Weil’s statement follows a recent claim of Calibra CEO David Marcus that companies outside the formal Libra Association are able to offer services on the platform. 

In an interview in mid-October, Marcus said that former association members such as Visa and Mastercard will still be able to issue cards for Libra.

Best Time to Launch Libra Was Three Years Ago

At the same event, Weil also suggested that the best time to launch Libra was three years ago, before the major crypto bull run of 2017. The Calibra exec reportedly added that now is the second-best time to do so. Weil also reportedly revealed that he was not an early believer of the major cryptocurrency Bitcoin (BTC) but became a fan in 2015 and 2016.


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Libra is an interoperable protocol like email, not a payment service like PayPal, Calibra’s VP of product says

Bitcoin Is Totally Different Than Libra: Calibra Head David Marcus

Bitcoin Is Totally Different Than Libra: Calibra Head David Marcus

The head of Facebook’s Calibra, David Marcus, says he is a big fan of Bitcoin, but it is totally different than Libra

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⁠David Marcus, the head of Facebook’s forthcoming cryptocurrency wallet Calibra, said that he is a fan of Bitcoin (BTC), but it is totally different than the proposed Libra stablecoin.

Bitcoin is digital gold, Marcus Says

In a Squawk Box interview on Oct. 16, Marcus stated that he has been looking at Bitcoin since 2012 and considers it to be akin to digital gold.

When asked by Squawk Box co-host Joe Kernen if he owns any Bitcoin or other cryptocurrencies, Marcus did not answer directly but noted that he was an early fan of the major cryptocurrency. He said, “I’m a big fan of Bitcoin what I see as digital gold and totally different Libra.“

Bitcoin v.s. non-volatile and scalable cryptocurrency

While treating Bitcoin as digital gold, Marcus stressed that the Libra project is seeking to create a non-volatile and scalable cryptocurrency rather than provide services for a high-volatile asset such as Bitcoin. He explained:

“If there was a stable, low-volatility, scalable version of Bitcoin that we could use today, my life would be so much simpler. We could just focus on embedding that in the Calibra wallet.”

Stability of fiat currencies backing Libra

In the interview, the CNBC host, who is known for his Bitcoin maximalism, asked about Libra’s backing which will supposedly consists of a basket of major fiat currencies such as the United States dollar, euro, Japanese yen, British pound and Singapore dollar. 

Specifically, Kernen stated that Libra’s planned peg to fiat currencies may not be a good idea, as such currencies are vulnerable to devaluation. 

Marcus’ statements follow those of U.S. Representative Warren Davidson, who said that Facebook using Calibra would be a “way better idea” than creating a new asset.


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The head of Facebook’s Calibra, David Marcus, says he is a big fan of Bitcoin, but it is totally different than Libra

Calibra Head: Libra ‘Absolutely Not’ in Jeopardy Without PayPal, Visa

Calibra Head: Libra ‘Absolutely Not’ in Jeopardy Without PayPal, Visa

Libra is “absolutely not” in jeopardy after seven firms including PayPal and Visa have dropped out of the project, says the head of Calibra

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Head of Facebook’s Calibra claimed that the recent withdrawal of the seven firms from the Libra Association has no impact on the project.

Dropouts will still be able to work with Libra

In an interview with Yahoo Finance on Oct. 15, Calibra’s David Marcus argued that Facebook’s cryptocurrency project is “absolutely not” in jeopardy after PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago and Booking quit the Libra Association.

Marcus emphasized that companies outside the formal association will still be able to offer services on the platform:

“One thing that is not well understood is that you don’t need to be a member of the Libra Association to build services and products. So if Visa and Mastercard want to issue cards for Libra wallet at a later stage, they can still do it without being members of the association.”

The Calibra executive further expressed his respect to the seven companies’ decision to leave the project and thanked the firms for having the courage to “look at potentially disrupting themselves.” 

Marcus said that he understands that the firms have a responsibility to their shareholders, which “were under a lot of pressure.”

The withdrawal has nothing to do with regulatory concerns

According to Marcus, the departure of the seven firms has nothing to do with regulatory matters as Libra project is “fleshing out all of the regulatory requirements and oversight required for this to operate.” 

However, the executive admitted that the process around Libra will continue to be difficult and will become even harder before it gets easier, while the association members should have the passion, energy and fortitude to press forward.

The news comes after Libra was formally founded in Geneva, Switzerland, on Oct. 14, with the 21 remaining initial members, including Uber, Lyft, Coinbase, Spotify and Vodafone.

As reported, Libra hopes to attract 100 members before its public launch slated for the first half of 2020. 

Meanwhile, U.S. Rep. Warren Davidson said recently that Facebook adding Bitcoin (BTC) to Calibra would be a “way better idea” than creating a new currency.


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Libra is “absolutely not” in jeopardy after seven firms including PayPal and Visa have dropped out of the project, says the head of Calibra

Libra Does Not Threaten Sovereignty of Nations, Says Calibra CEO

Libra Does Not Threaten Sovereignty of Nations, Says Calibra CEO

Calibra CEO dispels notion that Libra is a threat to the global financial system

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CEO of Calibra, Facebook’s digital wallet for its proposed Libra stablecoin, has attempted to debunk the notion of Libra’s threat to the global financial system.

Not new money but a better payment network

Amid the ongoing meeting between Libra founders and 26 global central banks in Basel, Calibra CEO David Marcus has stepped up to protect the position of the Libra Association on Twitter on Sept. 16.

In a Twitter thread titled “About monetary sovereignty of Nations vs. Libra,” Marcus wrote:

“Recently there’s been a lot of talk about how Libra could threaten the sovereignty of Nations when it comes to money. I wanted to take the opportunity to debunk that notion.”

Calibra CEO urged that Libra cryptocurrency project does not intend to form a new currency but rather build a “better payment network and system running on top of existing currencies” to deliver meaningful value to users over the globe. He emphasized that there is no new money creation, which will “strictly remain the province of sovereign Nations.”

Libra wants strong regulatory oversight

Stating that Libra will be backed 1:1 by a basket of strong currencies, Marcus stressed that the Libra Association is willing to have a strong regulatory oversight to prevent the company from deviating from its full 1:1 backing commitment.

The executive concluded that Libra will continue to engage with central banks, regulators and policymakers to ensure that they address their concerns through Libra’s design and operations.

BIS chief says regulators should “coordinate” on cross-border cryptos 

Marcus’ statement comes amid a meeting that is supposed to be the first major encounter between Libra’s founders and global policymakers. 

On Sept. 16, the Bank for International Settlements (BIS) hosted a meeting with senior officials from global public authorities to discuss regulatory issues of stablecoin projects backed by financial institutions and tech firms, the BIS officially stated in a press release shared with Cointelegraph today.

The conference included presentations by the Libra Association as well as global investment bank JP Morgan and blockchain-powered digital cash system firm Fnality International.

Agustín Carstens, general manager of the BIS, pointed out the importance of global regulatory coordination to understand the details of the project. Carstens said:

„A key part of assessing new initiatives is to understand the details […] When such initiatives cross national borders, it’s important for regulators to coordinate and come to a common understanding.“

Meanwhile, the German government spoke out against projects like Libra on Sept. 13, claiming that it will not authorize the development of stablecoins, following France’s footsteps.


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Calibra CEO dispels notion that Libra is a threat to the global financial system

Calibra CEO Delivers Opening Statements on Libra Ahead of Senate Hearing

Calibra CEO Delivers Opening Statements on Libra Ahead of Senate Hearing

David Marcus, CEO of Calibra, delivered opening statements to the Senate today regarding Facebook’s planned Libra stablecoin

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The United States Senate Banking Committee has released the opening statements of David Marcus, head of Facebook’s crypto wallet Calibra. Marcus made his comments to lawmakers today, July 15, ahead of a hearing on the Libra cryptocurrency project tomorrow in the Senate.

In his testimony, Marcus raised the issue of Facebook’s upcoming stablecoin Libra and its associated digital wallet Calibra, which have previously drawn criticism from both community members, lawmakers and leading industry players. Specifically, Marcus delivered comments on the structure and management of Libra and Calibra and their implications for commerce and consumers.

Marcus said that no sole organization should be responsible for the Libra Blockchain and the Libra Reserve; instead, there should be a cooperative approach. Thus, Facebook is ostensibly working on the creation of the Libra Association, which is an independent membership-based organization. Once Libra is launched, Facebook’s role in governing the association will ostensibly be equal to that of other members. 

According to Marcus, Facebook will not launch Libra until the company satisfies all matters related to the stablecoin’s regulation and receives appropriate approvals. Marcus continued:

“State financial regulators will regulate Calibra as a money transmitter, and the Federal Trade Commission and the Consumer Financial Protection Bureau will monitor for consumer protection and data privacy and security issues. Calibra has filed for state money transmitter licenses in the U.S. and it is also registered with FinCEN as a money services business.”

Marcus further stated that Libra is a payment tool, and not an investment, which means that users will not be able to buy or hold it like a stock to subsequently gain interest on it. Per Marcus, Libra also differs from other currency-backed stablecoins as it will not have its value fixed to any single asset, specifying:

“Libra will be fully backed on a one-to-one basis through the Libra Reserve, which will hold a basket of currencies in safe assets such as cash bank deposits and highly liquid, short-term government securities. These currencies will include the U.S. dollar, the British pound, the euro, and the Japanese yen.”

Yesterday, a drafted bill entitled “Keep Big Tech out of Finance” surfaced online, allegedly originating from within the U.S. House of Representatives Financial Services Committee. The bill read, “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.”


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David Marcus, CEO of Calibra, delivered opening statements to the Senate today regarding Facebook’s planned Libra stablecoin

Report: Facebook’s Calibra Digital Wallet Will Not Be Available in Its Largest Markets

Report: Facebook’s Calibra Digital Wallet Will Not Be Available in Its Largest Markets

Facebook’s Calibra digital wallet will not be available in some of the social network’s largest markets, including India, according to a report

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Facebook’s Calibra digital wallet will not be available in some of the social network’s largest markets, including India, according to a TechCrunch report on June 19.

A spokesperson told the website:

“The libra blockchain will be global, but it will be up to custo dial wallet providers to determine where they will and will not operate. Calibra won’t be available in U.S.-sanctioned countries or countries that ban cryptocurrencies.”

Estimates by Statista suggest there were 260 million Facebook users in India as of April this year — far ahead of the tech giant’s second-largest market, the United States.

Earlier this month, Indian lawmakers proposed tough new regulations that could see citizens face a 10-year jail term if they deal in cryptocurrencies.

Facebook intends to make Calibra available through a specially created app and via its WhatsApp and Messenger platforms. At present, India is the only market where a separate payments service — WhatsApp Pay — is available.

Announcing its Libra cryptocurrency and Calibra wallet, Facebook made clear that it wanted to reach unbanked consumers and give them access to financial services. However, this development could mean that India, home to the second-largest unbanked population in the world, misses out when Libra launches in the first half of next year.

Facebook’s global stablecoin will be backed by a reserve of assets to help protect it against the volatility often seen with other cryptocurrencies. MastercardPayPal and Visa are among the founding members of the governing Libra Association.

The project is facing resistance from other countries. Rep. Maxine Waters, who chairs the House of Representatives’ Financial Services Committee in the U.S., has urged Facebook to halt development “until Congress and regulators have the opportunity to examine [it.]”

Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov has also said that Libra will not be legalized in the country.


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Facebook’s Calibra digital wallet will not be available in some of the social network’s largest markets, including India, according to a report