Have you heard about Facebook cryptocurrency called “Libra”?
Few days ago, Facebook announced it’ll be having its own cryptocurrency, despite the constant fluctuation in the price of cryptocurrency, they’ve taken bold steps in introducing “Libra” to the world.
They released a document of up to hundred pages, explaining everything about the Libra project. Contained in the document is its founding members—currently composed of 27 organizations plus Facebook.
Other details were given, I’ll be breaking down the important parts of this document in this post.
Fasten your seatbelt, it’s gonna be a long ride!
What is this Facebook Cryptocurrency, Libra?
The term ‘Libra‘ is the Roman unit of weight, it’s equivalent to 327 grams. It a Latin word which means “scales” or “balance”.
The latter may seem to be the reason for choosing the name, given the current instability in the cryptocurrency industry.
Libra is Facebook cryptocurrency, just like Bitcoin and Etheruem.
It’s regulated by Blockchain.
Reason for Creating Libra, Facebook Cryptocurrency
The reason for creating this currency comes from the bane of high transaction charges for sending money—especially abroad.
It’s aimed at enriching the lives by reducing these cost which sometimes, have deterred some from sending money to their loved ones.
It is built on a scalable and secure Blockchain network, to be governed by an independent association—The Libra Association, and a reserve to protect its value in the financial world. The reserve is made up of real assets, also bank deposit and government owned securities will be deposited into the Libra reserve once a Libra is created.
Although they didn’t promise it’ll be free of charge, they’ve describe the charge to be that similar to that of “gas”. With this you can pay for anything online and offline (when it gets adopted) without worrying about charges.
Here is a big news about this Facebook Cryptocurrency, Libra
It’s going to have its official wallet— “Calibra”, that’ll be used for holding the Libra.
Calibra will allow users to pay for product and services, send/receive money or any other form of trading. This wallet will also be integrated into Facebook’s messenger and WhatsApp on the Android and iOS platform so as to ensure easy sending of money, it’ll be easy as sending of messages on those platforms.
Symbol or Logo for Libra, Facebook Cryptocurrency
The currency is represented by the (≋) symbol.
Facebook also announced that owning a Facebook account isn’t a priority for making use of Libra, they’ve also highlighted that a subsidiary body will be in charge of the affairs—Calibra.
They’ve also promised anonymity for users of Libra, this is due to recent events on breach of users’ privacy on the part of Facebook. According to the document, your personal details won’t be shared to Facebook, and won’t be used for targeted ADs, the Calibra organization will see to this.
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Although it’s been seen as a Facebook product, they’ve stated that all founding members will have an equal stake, this means no decision will be taken independently by Facebook as all members (more on this below) will have a 1% vote in taking of decisions.
The Libra Association – Facebook Cryptocurrency First Sets of Shareholders
As at when writing this, 28 organizations from different sectors around the world have combined to form the Libra organization.
Facebook also stated that it’s targeting at least hundred members before the official launch, direct competitors including Google and Twitter are also free to join the project. The organization will have it headquarters in Geneva, Switzerland. The choice of country was chosen based on the country’s support for innovative banking technology and neutral status as an institution.
Members of this facebook cryptocurrency, Libra are required to meet in Geneva twice a year.
The association will be a “not-for-profit” organization, at least in the early stages of Libra.
They aim to create an ecosystem where everyone can make use of money at all times without worrying about security and outrageous charges. They aren’t interested in making money currently, but in the future plans will be made to monetize the platform. We could see a possibility of taking loans, just like the conventional banks do.
Members paid $10 million each so as to join the association. This entitles them a single vote, a validator node (network that handles the Libra Blockchain), and a share of whatever is gained from the reserve. The members have been charged with the responsibility of helping enhancing the currency, recruit other members to serve as validator nodes.
According to Facebook;
An important objective of the Libra Association is to move toward increasing decentralization over time.
The Complete List of 28 members in Libra Association
The following members make up the Libra Association;
Technology and Marketplaces
- Bookings holdings
- Mecado Pago
- Union Square Venture
- Thrive Capital
- Ribbit Capital
- Andreessen Horowitz
- Breakthrough Initiatives
Non-profit and Multilateral Organizations, and Academic Institutions
- Women’s World Banking
- Creative Destruction Lab
- Mercy Corps
- PayU (Naspers’ fintech arm)
- Xapo Holdings LTD
- Bison Trails.
These are the 28 founding members of the Libra Association with a goal to reach 100 members before the official launch.
They’ll work together to finalize the Association’s charter. In the meantime, Facebook will maintain its leadership position throughout 2019. Calibra, a subsidiary of Facebook, currently headed by David Marcus—Facebook’s VP on Blockchain, will ensure that users data wouldn’t be shared with Facebook.
Once Libra is launched, all members will have equal rights and privileges in operation of the Association, even though teams from Facebook led to formation of the Libra Association.
These members have met certain requirements and future members will need to meet them. Here are they:
Requirements to Join Facebook’s Cryptocurrency, Libra Association
- They’re are ensure that they’ve got a dedicated internet connection, 100 megabits per second or half portion of server space
- More than a billion dollar worth of assets
- Blockchain firms like Xapo, Coinbase etc. would have been into business for more than a year, have an enterprise-grade security and more than a hundred million dollar worth of asset
- Non-profit and Multilateral Organizations, and Academic Institutions are required to have at least $50 million in terms of budget, must be in Charity Navigator’s top 100 and must reach out to a lot of multinationals.
Benefits of Facebook’s Cryptocurrency, Libra?
Facebook has hammered on the need for a decentralized and portable currency, this will lead to a better financial inclusion and competition. There’s need for merchants and developers around the world to work seamlessly with digital currency, the Association has this as one of its primary objectives.
Sending money will be as easy as sending a message using your favorite instant messaging app.
Privacy has been promised in the Association’s White paper which was released days back, this has been an ongoing issue in recent times and the Association is tasked with maintaining anonymity of transactions, at least you don’t need a Facebook account to own and use Libra—you financial details are safe (according to them).
Its 28 member (to increase in the future) association will ensure a highly decentralized currency which will be readily available to anyone one with internet connection—according to Facebook CEO, Mark Zuckerberg.
Also, to ensure stability—which is one of Libra features, the currency value will be similar to rate of currencies like the Dollar, Pound, and Euro. With this you can exchange your Dollar for Libra without losing much value, send to friends and pay for products without incurring much charge.
Security will also be top notch as you’d be protected by reliable cryptography, especially for those who would be using it on the social platforms like Messenger and WhatsApp.
Facebook Cryptocurrency, Libra: Launch Date
With all the goodies promised by Facebook, one may be itching to lay their hands on this new digital currency.
Well, it’s gonna be a long wait as the Libra project is still in its developmental phase, developers are working on making the Libra and its wallet—a remarkable one.
Although Facebook didn’t give a specific date, they’ve hinted that the launch will happen in the first half of 2020. Until then, Facebook will continue to lead the Libra Association.
Developers are also encouraged to join the project. They are expected to make use of the Association’s programming language called “Move Programming Language”.
The language was created to make writing of Blockchain easier, meanwhile the Rust Programming language will be used to implement the core APIs of Libra. The Move language is still going through development, so it’s not been released to developers yet. Once it’s released (on or before the launch in 2020), developers will be able to create apps that be able to work with Libra platform. But for now, they’ll be able to create script and prototypes using Move IR, which should be available to them.
What Experts Say About this Facebook Cryptocurrency, Libra
Many experts have hinted at the possibility of incongruous developers using the platform for fraud, this is due to the fact that the Libra Blockchain is open source, with an Apache 2.0 license.
There has been no response from Facebook on this even though they’ve stated they’re open to public enquiry from policy makers and regulators.
Later this year, the Association will be partnering with HackerOne, they’ll pay experts in cybersecurity for identifying bugs, breaches and flaws that may be present. This is why the Association has chosen to use Rust in the development of Libra’s core. Since Move will be open source, it wouldn’t be recommended for implementing the important parts of Libra Blockchain.
Public Reactions on Libra
Many person have hinted at Facebook’s shady practices in terms of privacy and are still not convinced on the idea, believing it’s the same good old Facebook that ‘says and never does’. Someone the other hand, are very excited about the initiative and are ready to jump on it once it gets launched.
Experts believe that the Libra wouldn’t be decentralized as has been promised by the Libra Association, they believe that true decentralization in almost impossible even though Facebook has promised it. Many are still skeptical, never liking the ideologies behind cryptocurrency and with Libra’s promised stability, scalability and wide acceptance, they’ve chosen to remain unchanged.
You’ve gone through just a brief from the Libra Association’s White Paper, you can read everything >>>>>> https://libra.org/en-US/white-paper/.
This is what you need to set your mind on;
Facebook and its founding members of the Libra project has promised stability, scalability and a more decentralized currency. Privacy and top notch security has also been promised and we wait to see if all these get implemented when it’s launched in the first half of 2020.
What do think of Libra?
Do you think that this Facebook Cryptocurrency, Libra will work in Nigeria?
Kindly share your opinion with us here in the comment box below!