Facebook has announced the long-awaited blockchain project called Libra. Information about its development was kept secret for a long time, but still some data fell into the news. Now with the official announcement you can find out what turned out to be true.
Websites of the blockchain project Libra and its official crypto wallet Calibra can already be accessed through web. Information about the association managing the project, the “White paper”, and technical documentation are available too, as well as the developer section. Today we will tell you what it is, why and by whom it was created, if it is possible to invest in it and where to buy.
Why was the cryptocurrency Libra created?
One of the reasons for creating it is to pay for purchases and transfer funds to the Facebook platform. Massive payment system will also work through the corporation social services. Facebook, Messenger, Instagram, WhatsApp, and other company networks are included.
A similar system works in China on the WeChat social network. The only difference is that payments made with ordinary money. Cryptocurrency payments may be convenient for those who cannot use bank services.
There are about 1.7 billion such people living in poor and developing countries according to the Facebook data. Cryptocurrency Libra can replace national money in these countries. Because the exchange rate of national money is too unstable. The company’s latest report said that 2.7 billion people use at least one of the company’s social services. For example, WhatsApp is used in 180 countries. In days to come, they will gain access to financial transfers based on the new Libra cryptocurrency.
It is assumed that the Libra rate will be stable. This means that it will be tied to several other currencies and securities. Thus, the risk of collapse will minimize. It also minimizes volatility. That is exactly what a regular rate of Bitcoin and other cryptocurrencies suffer from. Facebook will own a certain amount of reserve funds. Thus, Libra government plans to hold a constant course of cryptocurrency. Management also plans to pay salaries in coins.
Can you trust the new Libra cryptocurrency?
There is no single answer. On the one hand, Facebook received a lot of negative ratings due to leakage of user data. This affected their reputation and brought huge financial losses to market capitalization. Because of this, Wall Street companies such as Goldman Sachs and JP Morgan refused to become Libra Association members. Representative of the European Parliament Mark Ferber called Libra a potential “shadow bank”. Similarly Libra was met by officials in several countries.
But on the other hand, the blockchain technology itself, on which the coin will be built, suggests that cryptocurrency management will not be concentrated in one hand. And access to the network nodes will be for all investors. And they will all be responsible for transactions between users.
The “White Paper” declares gradual transfer of the reins the community.
While the network will be managed by a non-profit organization Libra Association. Now it consists of almost three dozen members. They are from the areas of blockchain, payments, investments, telecommunications, transport, travel and even music. All of them accept Libra tokens for their services. The associations want to raise the number of members to 100. No member can own more than 1% of the vote. Despite the fact that the company promises not to use this for advertising targeting, it is obvious that this is very seductive information – knowing who is interested in which group of products.
When will the Libra appear and how to use it?
Libra market entry data may depend on the regulation of cryptocurrencies in different countries. But the official launch is planned for early 2020. By then, the Facebook team will have to create a Calibra crypto wallet. It will integrate many of the corporation’s services. Take into account a huge audience, there is a big and important task to process a huge number of transactions. While maintaining speed and safety.
The developers claim that the throughput of the Libra blockchain will be up to a thousand transactions per second. Subject to technical requirements: Internet connection speed of at least 40 Mbit per second and the use of SSDs with a capacity of 16 gigabytes. Some experts believe that Libra can replace the dollar and the euro. But this is only if the wallet will be convenient to use besides the above conditions.
A section for developers is also available. The Libra blockchain is developed in the native language Move. According to the project team, this was necessary for the programmability of the network, the possibility of its gradual change and the addition of new functions. Ben Maurer, head of the language development team, claims that code security has become the “key principle” of the Move design. An “early version” of the Move code has published, and at the testing stage. They want to attract the community to finish it. For this, a large-scale bounty program will be organized to search for and fix bugs. It will work until the full launch of the network in 2020.
When and where you can buy a Libra?
In February of this year, The New York Times announced that Facebook was in talks with several trading platforms. Libra tokens can go on sale on cryptocurrency exchanges at the beginning of next year.