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The real risk of Facebook’s Libra coin is crooked developers – TechCrunch



Everyone’s worried about Mark Zuckerberg controlling the next currency, but I’m more concerned about a crypto Cambridge Analytica.

Today Facebook announced Libra, its forthcoming stablecoin designed to let you shop and send money overseas with almost zero transaction fees. Immediately, critics started harping about the dangers of centralizing control of tomorrow’s money in the hands of a company with a poor track record of privacy and security.

Facebook anticipated this, though, and created a subsidiary called Calibra to run its crypto dealings and keep all transaction data separate from your social data. Facebook shares control of Libra with 27 other Libra Association founding members, and as many as 100 total when the token launches in the first half of 2020. Each member gets just one vote on the Libra council, so Facebook can’t hijack the token’s governance even though it invented it.

With privacy fears and centralized control issues at least somewhat addressed, there’s always the issue of security. Facebook naturally has a huge target on its back for hackers. Not just because Libra could hold so much value to steal, but because plenty of trolls would get off on screwing up Facebook’s currency. That’s why Facebook open-sourced the Libra Blockchain and is offering a prototype in a pre-launch testnet. This developer beta plus a bug bounty program run in partnership with HackerOne is meant to surface all the flaws and vulnerabilities before Libra goes live with real money connected.

Yet that leaves one giant vector for abuse of Libra: the developer platform.

“Essential to the spirit of Libra . . . the Libra Blockchain will be open to everyone: any consumer, developer, or business can use the Libra network, build products on top of it, and add value through their services. Open access ensures low barriers to entry and innovation and encourages healthy competition that benefits consumers,” Facebook explained in its white paper and Libra launch documents. It’s even building a whole coding language called Move for making Libra apps.

Apparently Facebook has already forgotten how allowing anyone to build on the Facebook app platform and its low barriers to “innovation” are exactly what opened the door for Cambridge Analytica to hijack 87 million people’s personal data and use it for political ad targeting.

But in this case, it won’t be users’ interests and birthdays that get grabbed. It could be hundreds or thousands of dollars’ worth of Libra currency that’s stolen. A shady developer could build a wallet that just cleans out a user’s account or funnels their coins to the wrong recipient, mines their purchase history for marketing data or uses them to launder money. Digital risks become a lot less abstract when real-world assets are at stake.

In the wake of the Cambridge Analytica scandal, Facebook raced to lock down its app platform, restrict APIs, more heavily vet new developers and audit ones that look shady. So you’d imagine the Libra Association would be planning to thoroughly scrutinize any developer trying to build a Libra wallet, exchange or other related app, right? “There are no plans for the Libra Association to take a role in actively vetting [developers],” Calibra’s head of product Kevin Weil surprisingly told me. “The minute that you start limiting it is the minute you start walking back to the system you have today with a closed ecosystem and a smaller number of competitors, and you start to see fees rise.”

That translates to “the minute we start responsibly verifying Libra app developers, things start to get expensive, complicated or agitating to cryptocurrency purists. That might hurt growth and adoption.” You know what will hurt growth of Libra a lot worse? A sob story about some migrant family or a small business getting all their Libra stolen. And that blame is going to land squarely on Facebook, not some amorphous Libra Association.

Image via Getty Images / alashi

Inevitably, some unsavvy users won’t understand the difference between Facebook’s own wallet app Calibra and any other app built for the currency. “Libra is Facebook’s cryptocurrency. They wouldn’t let me get robbed,” some will surely say. And on Calibra they’d be right. It’s a custodial wallet that will refund you if your Libra are stolen and it offers 24/7 customer support via chat to help you regain access to your account.

Yet the Libra Blockchain itself is irreversible. Outside of custodial wallets like Calibra, there’s no getting your stolen or mis-sent money back. There’s likely no customer support. And there are plenty of crooked crypto developers happy to prey on the inexperienced. Indeed, $1.7 billion in cryptocurrency was stolen last year alone, according to CypherTrace via CNBC. “As with anything, there’s fraud and there are scams in the existing financial ecosystem today . . .  that’s going to be true of Libra too. There’s nothing special or magical that prevents that,” says Weil, who concluded “I think those pros massively outweigh the cons.”

Until now, the blockchain world was mostly inhabited by technologists, except for when skyrocketing values convinced average citizens to invest in Bitcoin just before prices crashed. Now Facebook wants to bring its family of apps’ 2.7 billion users into the world of cryptocurrency. That’s deeply worrisome.

Facebook founder and CEO Mark Zuckerberg arrives to testify during a Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee joint hearing about Facebook on Capitol Hill in Washington, DC, April 10, 2018. (Photo: SAUL LOEB/AFP/Getty Images)

Regulators are already bristling, but perhaps for the wrong reasons. Democrat Senator Sherrod Brown tweeted that “We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight.” And French Finance Minister Bruno Le Maire told Europe 1 radio that Libra can’t be allowed to “become a sovereign currency.”

Most harshly, Rep. Maxine Waters issued a statement saying, “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

Yet Facebook has just one vote in controlling the currency, and the Libra Association preempted these criticisms, writing, “We welcome public inquiry and accountability. We are committed to a dialogue with regulators and policymakers. We share policymakers’ interest in the ongoing stability of national currencies.”

That’s why as lawmakers confer about how to regulate Libra, I hope they remember what triggered the last round of Facebook execs having to appear before Congress and Parliament. A totally open, unvetted Libra developer platform in the name of “innovation” over safety is a ticking time bomb. Governments should insist the Libra Association thoroughly audit developers and maintain the power to ban bad actors. In this strange new crypto world, the public can’t be expected to perfectly protect itself from Cambridge Analytica 2.$.

Get up to speed on Facebook’s Libra with this handy guide:

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DoorDash is ending its delivery partnership with Walmart – TechCrunch



DoorDash is ending its partnership with Walmart after more than four years of delivering the retail giant’s products to customers. The news was first reported by Business Insider. Sources familiar with the matter told Insider that DoorDash decided to end its partnership with Walmart because it was no longer mutually beneficial and because the delivery company wanted to focus on “its long-term customer relationships.”

A spokesperson for Walmart told Insider that the two companies “have agreed to part ways.”

DoorDash is said to have sent Walmart a 30-day notice and a letter earlier this month to end their partnership. The termination will go into effect in September.

“We’d like to thank Walmart for their partnership and are looking forward to continuing to build and provide support for merchants in the years ahead with our leading Marketplace and Platform offerings,” a spokesperson from DoorDash told TechCrunch in an email.

The termination will end a partnership that began in April 2018 as a pilot to deliver Walmart groceries to customers in the Atlanta metro area. Since then, the partnership expanded to states across the country.

Although Walmart has partnered with third-party delivery services like DoorDash, the retail giant has also been focused on building out its own delivery efforts. For instance, Insider reported on Thursday that Walmart is acquiring Delivery Drivers, which is the company behind Walmart’s Spark platform that sees gig workers deliver orders to customers. A Walmart spokesperson told Insider that the Spark platform has grown to become the company’s largest delivery service provider and that it accounts for 75% of Walmart deliveries.

DoorDash, on the other hand, has been building out its DoorDash Drive platform, its business-to-business service that provides drivers to merchants through their own website or app.

While DoorDash’s partnership with Walmart is coming to a close, the company has geared up to collaborate with another notable brand, Facebook parent Meta. DoorDash confirmed earlier this week that DoorDash Drive is now in the early stages of testing a service that will allow DoorDash drivers to pick up and drop off Facebook Marketplace items to customers. DoorDash and Meta are currently offering the test service in several cities in the United States.

It’s worth noting that DoorDash has also been testing a package return feature since March that allows customers to return items to the post office, UPS or FedEx.

Walmart did not respond to TechCrunch’s request for comment.

Update 08/19/2022 11:50 AM ET: The story was updated to include a statement from DoorDash.

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Snap, HBO Max partner to launch AR experiences for ‘House of the Dragon’ premiere – TechCrunch



To celebrate the premiere of HBO’s highly anticipated “Game of Thrones” prequel, “House of the Dragon,” HBO Max is partnering with Snap to give users access to in-app AR experiences. For the show’s premiere on August 21, Snap and HBO Max are releasing a new selfie and worldview Lens, along with Landmarker Lenses, that let you immerse yourself into the show’s fantasy world.

The selfie Lens transforms you into a fire-breathing dragon. In the worldview mode, the Lens leverages sky segmentation technology to unleash flying, fire-breathing dragons above you so you can pretend to be part of the Game of Thrones world. Snap says the Lens will go live in regions around the world, including Australia, Europe, India, the Middle East and Northern Africa, North America and more. The Lens can be accessed via the Lens Carousel in the app.

As for the Landmarker Lenses, Snap and HBO Max have coordinated with Lens creators from around the world to build custom AR experiences in their local markets. The Landmarker Lenses will offer users another way to engage with the show, as they will reveal AR renderings of the show’s dragons over local landmarks all over the globe.

The first Lenses will launch for the premiere in Los Angeles at Venice Beach Grand Canals, in Rio De Janeiro at the Princess Isabel Statue, in London at the Tower Bridge, in Chennai at the Sankagiri Fort, in Mumbai at the CST Station and in Prague at the Charles Bridge. The Lenses will be unlockable via the Lens Carousel when users are near a Landmarker location.

Snap and HBO Max Lens for House of the Dragon

Image Credits: Snap

There will be around 20 new Landmarker Lenses released throughout the season from creators in more than 10 countries. Snap says as new dragons are introduced over the course of the season, Landmarker experiences featuring those dragons will be made available. The Lenses will focus on three key show moments: the series premiere, pivotal mid-season episodes and the season finale.

The launch comes as Snap says more than 250 million users engage with augmented reality every day on average on the app and that Snapchat sees over 6 billion AR Lens plays every day on average. The company also says more than 250,000 Lens Creators have built 2.5 million Lenses through its AR creation tool, Lens Studio. In addition, Snap says over 300 developers have reached more than a billion views on their Lenses that and Lenses built by its community have been viewed more than 5 trillion times.

“House of the Dragon” is set 200 years before the events of “Game of Thrones. The series will focus on the beginning of the end of House Targaryen, as the infamous Dance of Dragons will take center stage as family members of House Targaryen fight for the Iron Throne.

HBO is going all in with AR experiences for “House of the Dragon,” as the series has its own companion AR app called DracARys. The app rolled out globally on July 25 across iOS and Android devices and lets fans raise their own virtual dragon.

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How W4 plans to monetize the Godot game engine using Red Hat’s open-source playbook – TechCrunch



A new company from the creators of the Godot game engine is setting out to grab a piece of the $200 billion global video game market — and to do so, it’s taking a cue from commercial open source software giant Red Hat.

Godot, for the uninitiated, is a cross-platform game engine first released under an open source license back in 2014, though its initial development pre-dates that by several years. Today, Godot claims some 1,500 contributors, and is considered one of the world’s top open source projects by various metrics. Godot has been used in high-profile games such as the Sonic Colors: Ultimate remaster, published by Sega last year as the first major mainstream game powered By Godot. But Tesla, too, has apparently used Godot to power some of the more graphically-intensive animations in its mobile app.

Among Godot’s founding creators is Juan Linietsky, who has served as head of development for the Godot project for the past 13 years, and who will now serve as CEO of W4 Games, a new venture that’s setting out to take Godot to the next level.

W4 quietly exited stealth last week, but today the Ireland-headquartered company has divulged more details about its goals to grow Godot and make it accessible for a wider array of commercial use-cases. On top of that, the company told TechCrunch that it has raised $8.5 million in seed funding to make its mission a reality, with backers including OSS Capital; Lux Capital; Sisu Game Ventures; and — somewhat notably — Bob Young, the cofounder and former CEO of Red Hat, an enterprise-focused open-source company that IBM went on to acquire for $34 billion in 2019.

But first… what is a game engine, exactly?

Game plan

Godot editor demo

In simple terms, a game engine serves up the basic building blocks required for developers to create games, and may include anything from renderers for 2D or 3D graphics, to scripting and memory management. It’s basically a software framework that developers can use and reuse without having to redesign the wheel with each new game they create.

“This allows developers to utilize pre-made functionality that is common to most games when creating their own, and only create the parts that make the game unique,” Linietsky explained to TechCrunch.

While many companies, particularly larger game studios, develop their own engines in-house, as games and the associated development processes have become more complex, third-party general purpose game engines have grown in popularity. This includes long-established incumbents such as Unity, developed by tech powerhouse Unity Software, which is currently in the process of merging with IronSource.

One reason why a studio might use a third-party game engine is to cut down on in-house development costs, but a trade-off here is that it then has to work with a gargantuan code-base which it has limited control over. And that is why Godot has gained some fans through the years — as an open-source project, it gives developers an oven-baked game engine that they can tweak and fine-tune to their own needs, with improvements pushed back to the development community for everyone to benefit from.

“The result is reduced development costs and more freedom to innovate,” Linietsky said. “Godot brings to the game industry the same benefits that enterprise software has been enjoying from it [open source software] for decades.”

The open source factor

Red Hat Inc. signage is displayed outside the New York Stock Exchange (NYSE)

Anyone who has even remotely paid attention to the technology sphere over the past decade or so will have noticed that open source is now big business. The likes of Elastic and Cockroach Labs have built billion-dollar businesses off the back of open source projects, while Aiven recently hit double-unicorn status for a business that helps enterprises make the most of open source technologies in cloud environments.

But Red Hat, arguably, remains one of the biggest success stories from the open source world, selling enterprises premium support and services for some of the world’s biggest community-driven projects, from Linux to Kubernetes.

“Companies like Red Hat have proven that with the right commercial offerings on top, the appeal of using open source in enterprise environments is enormous,” Linietsky said. “W4 intends to do this very same thing for the game industry.”

It’s an interesting parallel, for sure, and one that seems pretty obvious when presented with such a comparison. Linux’s open source credentials were what led it to become the leading operating system for web servers, while Android’s mobile market share dominance can substantively be attributed to its Linux kernel base. Elsewhere, other open source projects such as Kubernetes are powering enterprise adoption of microservices and container technologies.

In truth, Godot is nowhere near having the kind of impact in gaming that Linux has had in the enterprise, but it’s still early days — and this is exactly where W4 could make a difference.

“We expect Godot to take the same route in the game industry as other open source software has taken in the enterprise, which is to slowly become the de facto standard,” Linietsky continued. “It is very difficult for companies that create proprietary software to compete with the massive talent pool that popular open source projects have, and unappealing for software users to concede the freedom to use software as they please to a third-party entity.”

On top of that, having one of Red Hat’s original founders on board as an investor can only be construed as a major coup for a startup that is just eight months old.

“Bob is an incredible human being who helped create a whole new type of business where nobody expected it was possible,” Linietsky continued. “He identified the opportunity for Godot and W4 as very similar to Linux and Red Hat two decades ago, and has been very kind to share his wisdom with us, as well as becoming an investor in our company.”

Support and services

Concept illustration depicting technical support

Concept illustration depicting technical support

W4’s core target market will be broad — it’s gunning for independent developers and small studios, as well as medium and large gaming companies. The problem that it’s looking to solve, ultimately, is that while Godot is popular with hobbyists and indie developers, companies are hesitant to use the engine on commercial projects due to its inherent limitations — currently, there is no easy way to garner technical support, discuss the product’s development roadmap, or access any other kind of value-added service.

But perhaps more importantly, while Godot is touted as a cross-platform game engine spanning the web, mobile, and desktop, it has hitherto lacked direct support for games consoles. The reason for this is that as an open source project served under a permissive MIT license, Godot can’t provide support for consoles because it wouldn’t be allowed to publish the code required to interact with the proprietary hardware — game studios that develop for consoles have to sign strict non-disclosure agreements. Plus, console makers will only work with registered legal entities, which Godot is not.

Put simply, Godot can’t be a community-driven open source project and support consoles at the same time. But there are ways around this, which is why W4 hopes to make money by offering a porting service to help developers convert their existing games into a console-compatible format. 

“W4 will offer console ports to developers under very accessible terms,” Linietsky said. “Independent developers won’t need to pay upfront to publish, while for larger companies there will be commercial packages that include support.”

Elsewhere, W4 is developing a range of products and services which it’s currently keeping under wraps, with Linietsky noting that they will most likely be announced at Game Developers Conference (GDC) in San Francisco next March.

“The aim of W4 is to help developers overcome any problem developers may stumble upon while trying to use Godot commercially,” Linietsky added.

It’s worth noting that there are a handful of commercial companies out there already, such as Lone Wolf Technology and Pineapple Works, that help developers get the most out of Godot — including console porting. But Linietsky was keen to highlight one core difference between W4 and these incumbents: it’s expertise.

“The main distinctive feature of W4 is that it has been created by the Godot project leadership, which are the individuals with the most understanding and insight about Godot and its community,” he said.


Of Godot’s 1,500 or so contributors, 10 are more-or-less permanent hires, paid via community donations. Similarly, W4’s current team of 12 largely consists of long-standing Godot contributors, spread across eight different countries in the Americas and Europe. This is much like how other companies built on an open source foundation started out, including Red Hat and’s parent Automattic, which was one of the most well-known “distributed” company out there, long before the remote-work revolution came along in 2020.

Indeed, distributed work is one of the core defining characteristics of open source software development. By way of example, Linietsky is based in Spain, while cofounder and COO Rémi Verschelde works from Denmark. The other two founders, CTO Fabio Alessandrelli and CMO Nicola Farronato, operate from different locations in Italy.

But every legal entity needs to choose somewhere as its corporate home. And similar to many tech companies, W4 elected Dublin, Ireland as its official HQ — though this presence is really just on paper, only.

“We are based in Ireland because two of the cofounders have previously established there, have relatives, and are very familiar with the Irish ecosystem,” Linietsky said.

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