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Facebook Announces it First Cryptocurrency “LIBRA”
We have been receiving rumors and reports from Facebook launching its very own cryptocurrency for quite some time now with reports from the business hiring professionals, and more. Now, Facebook CEO Mark Zuckerberg announced the fresh currency the business was working on, well, Facebook. In his long, and explanatory post about the currency, called Libra, Mark outlines quite a lot about how the currency would work, what the company aims to do with it, and of course, he takes quite some time reassuring people that it’ll be private, and their data won’t be shared with Facebook, but let’s break it down step by step.
So, Facebook has partnered with 27 organizations around the globe to begin a non-profit organization called the Libra Association, with the task to “build a straightforward worldwide economic infrastructure that empowers billions of individuals around the globe.” According to Mark’s post, the currency will be introduced in 2020 and driven by the blockchain. The goal of Libra, Facebook, and the Libra Association is to create mobile banking accessible to billions of individuals who do not have a bank account but have mobile phones.
Zuckerberg says that around the globe there are a billion individuals who do not have a bank account but use mobile phones.
With Libra, says Zuckerberg, the Association hopes to create it simple for individuals to send and receive cash, and to that end, it has also announced a subsidiary called’ Calibra’ which will create facilities to enable customers to spend, send and save the Libra currency. This will be accessible in WhatsApp and Messenger as a digital wallet, and later next year as a standalone app.In his article, Zuckerberg points out that information shared with Calibra will be distinct from that shared with Facebook, and says “This is an significant component of our vision for a privacy-focused social platform — where you can communicate in every way you want freely, from messaging to secure payment.”Facebook currently generate 99% of it revenue from advertising.
What is Libra on Facebook? “Libra is a straightforward worldwide currency and economic infrastructure, empowering billions of individuals,” according to the white paper.
What is Facebook Libra ?
“Libra is a simple global currency and financial infrastructure that empowers billions of people,” according to the White Paper.
Libra has five vital components / features:
- 1. Built on a safe blockchain that is scalable and reliable.
- 2. It’s a stablecoin supported by an asset reserve.
- 3. The Libra Association is autonomous.
- 4. Uses the consensus mechanism of LibraBFT.
- 5. Smart contract coding takes place via the programming language “Move.”
Before the launch, which takes place in the first half of 2020 or before, Facebook aims to have 100 members in its Libra Association. The association is the ultimate decision-making authority, but Facebook will continue to play a management position through 2019. However, the whitepaper says that all members of the Association will have the same commitments, privileges and economic obligations as any other founding member once the network is launched. All colleagues will have the same authority of governance. Facebook has created a digital wallet called “Calibra” to communicate with Libra. Users will be able to use Calibra to send Libra through their smartphones. Facebook allows you to select from a list of partner payment suppliers such as MasterCard, Visa, PayPal, and Stripe to send money to your Calibra wallet. People will also be able to convert US dollars into Libra by going to local or online monetary exchanges for their Calibra digital wallet.
The Libra Blockchain
In the traditional context, the Libra blockchain is not really a blockchain. To meet the following criteria, the Facebook team decided to code their chain from scratch which are these:
- 1. Must be able to scale up to billions of accounts. This needs high transaction throughput, low latency, and an effective storage system with high capacity.
- 2. To guarantee the security of funds and economic information, it must be extremely safe.
- 3. Should be flexible in order to power the governance of the Libra ecosystem as well as future financial services innovation.
Facebook hire Banking expert to run “LIBRA”
Facebook is looking to employ a seasoned executive to operate its “Libra” digital coin project that has the expertise of the complicated state and central banking system. According to David Marcus, Facebook’s messaging product vice president and a main figure behind the digital currency project ‘ Libra,’ someone with government and central banking experience would be a good option to supervise the currency.
“We need someone who knows how economies tend to work, who understands how to function in an setting of a very complicated sort of decentralized governance,” Marcus said Friday to The Information.Facebook has announced next year that it will launch its own digital coin called’ Libra’ to detect a multi-billion dollar chance to enhance the cross-border payment system. “We need someone who has the gravitas to be able to perform the message on behalf of all the participants— the 100 members and more of the association when this thing comes live— rather than each and every one of us having piecemeal discussions left and right with all the distinct governments and regulators that will be subject to this whole network,” Marcus explained.
The fresh digital wallet for the’ Libra ‘ currency will be accessible as a stand-alone app in 2020 in Facebook Messenger, WhatsApp.
Facebook has linked up with 27 organizations around the globe to generate the new currency by starting the non-profit Libra Association.
Marcus denied reports that the Facebook invitation to join the Libra Association was rejected by banks.
“We had talks with the banks. We’re still talking to banks. And my expectation is that you will have banks that will be members of this by the moment this thing starts next year, “Marcus was cited as stating. Mark Zuckerberg, CEO of Facebook,”Apart from our attempts, many other businesses will create their own facilities using Libra — from payment firms such as Mastercard, PayPal, PayU, Stripe and Visa to famous services such as Booking, eBay, Farfetch, Lyft, Spotify and Ubera.
“To assist drive innovation on the Libra network, a number of major venture companies are also joining. We hope that by the moment the network launches next year, we will have over 100 co-founding members of the Libra Association, “Zuckerberg said.
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