Facebook recently released the white paper explaining everything one need to know about the much awaited cryptocurrency Libra and Libra cryptocurrency price. You can use it to make transactions including exchange of goods and services and that too without paying almost zero middleman taxes .
This currency can be used over third party apps and as well as on Facebook’s own app Calibra. It is like you are using a whole new kind of currency over various platforms as well as you can cash it out in your desired currency.
The public launch of Libra is scheduled in 2020 but an interface interaction video has been posted already.
Libra is not independently controlled by Facebook but there is an association of various big companies as Visa, Andreessen Horowitz and Uber, each of which made an investment of $10 million towards the operation of the project that way Facebook owns one vote in any decision making related to the company’s working.
The formation of the company under an association has made its usage over various platforms effortless.
HOW DOES LIBRA WORK
By far we just looked over the basics of Facebook’s upcoming stablecoin Libra , but we went through the white paper published by Facebook few days back and while reading all the documents we found some interesting point which needs further elaboration.
The Libra Association And Governance
The Libra Association is a group of various multilateral organisations as its founding members expanding the project on a spectrum of different platforms including Technology, Marketplace, Telecommunication, Venture Capitals and so on. Every member company invested $10 million to become a validator node and earned a vote in the project expansion and decisions regarding ii, s growth.
The association is governed by the Libra Association Council, comprised of one representative per validator node. They mutually make decisions on governance of the network. The most important feature of association is decentralisation of authority. As presented in the white paper the main objective of further decentralisation is transparency.
The Libra reserves is also maintained by the Libra Association thus growing the Libra economy it means the Association is solely responsible to create(mint) and destroy(burn) Libra.
These minted coins can only be purchased from the Association and only by the authorised resellers in exchange of assets. These all activities are controlled and governed by a Reserve Management Policy that can be amended by the association members through validating a majority.
The most adversing quality of the Association is that all the fundraisers are the active participants of program”s workflow.
Technology behind the scene
Libra in it’s basic nature is very similar to other cryptocurrencies , Libra payment is designed over Libra Blockchain which is a cryptic database acting as a public ledger thus making the transactions way more faster than any previous cryptocurrency technology.
The Libra blockchain is managed by nodes, which are servers that help to operate the blockchain. Libra transactions are irreversible which means if some threat is identified over more than one third of the controlling nodes it will halt the action itself.
There is a small amount of transaction fee which is being paid against “Gas” , this fee will be negligible for an individual consumer but it is enough to let someone power spam or creating Denial of Service attacks.
“We’ve purposely tried not to innovate massively on the blockchain itself because we want it to be scalable and secure,” says Marcus of piggybacking on the best elements of existing cryptocurrencies.
For now Libra Blockchain is “permissioned” which means only a selective set of entities are admitted. But Facebook’s research shows that it couldn't find a permissionless system to handle such large number of transaction without compromising with speed or security.
The exact functioning of the Libra bLockchain is still kept secretive as agreed by all the members and so far libra cryptocurrency price and currency exchange factor are not in public domain. Also the process of investing into it, is similar as how to invest in bitcoin.
Global Impact and concerns
The Libra association is trying to convince and encourage more merchants and developers to shift to their cryptocurrency and for that Facebook itself is launching a payment portal application Calibra in order to make it’s usage more efficient.
Using this payment platform will let the merchants receive some part of the transaction back as an economic profit to their venture.
Customers also receive offers in the form of Libra Tokens thus making a competitive environment for other wallets to polarise the base of customers by providing more and more offers and discounts.
The most concerning social issue about the Libra project is the identity security of it’s users but The Association has confirmed that the data on Facebook will not be related with the data which will be updated on Calibra eradicating any sort of threats regarding invasion of privacy of the users thus making this whole system of global E-commerce frictionless.
The roots of the project commands for equality too with the introduction of a global coin as we know in today’s world money doesn't work the same way for everyone. We can arguably call this as another effort of Facebook to make the world feel smaller and more socially connected eliminating any sort of isolation.
Pinch of Controversy
Everyone is already aware of how Mark Zuckerberg came up with the idea of Facebook , we are not going to discuss about business ethics here but here is a little story about how the same guys named Cameron Winklevoss and Tylor Winklevoss famously called Winklevoss Twins who are originally credited for the idea of Facebook launched their cryptocurrency known as Gemini (the twin zodiac) in 2003 almost 15 years before the idea of Libra came live.
Cryptocurrency investment is surely a trending scheme for engaging your savings into it but frankly speaking this whole thing of cryptocurrency and stablecoin is much more complex than it seems . The complete shift of economy over a pseudo currency can have a wide variety of affects that can only be witnessed once applied .
Inclusion of Facebook in the association reflects very high stakes of transfer of authority over a single company which if will happen , be obviously Facebook.But is it not the calculated risk we talk abo
ut when we process any technological advancement .
Certainly It will be wise to leave the conclusion over reader’s understanding of the subject rather than laying biased opinions.