Facebook is coming up with its new digital currency, called Libra. Morgan Beller started working on this cryptocurrency in 2017, who was the only person that would work on this project for some time. When Facebook’s VC moved from the messenger department into the cryptocurrency, within a few days it was announced that Facebook is working on its own blockchain cryptocurrency.
Facebook’s main aim to launch this crypto is to help those adults all over the world who don’t have a bank account and don’t have access to some financial services that are available to other people in the industry. The wallet that will hold this cryptocurrency is called Calibra, which will allow people to transfer money with their smartphones. It’s as easy as sending messages between people.
Facebook is also planning to provide some extra services to a small business as sometimes they don’t have enough budget to run successfully. The Libra currency at this moment is governed by Libra association that is situated in Switzerland.
Launching in 2020, here are some things you need to know:
Their main focus is to revolutionize the economy of the world so that everyone in this world can have better financial lives. Libra aims to become a global currency that will empower billions of people throughout the whole world.
Libra is believed to become the global currency, which will allow people to use the money to send, receive, spend invest and secure the money. It is supposed to create a more extensive financial system globally.
What’s The Role Of Libra:
It’s supposed to evolve and scale the network and its reserves. Libra will be able to create global financial incorporation. Libra will join forces with policymakers and communities in order to fulfil the mission of Libra.
Why should You Choose Libra?
Out of 7 billion people in the world, over 1.7 billion people don’t have a bank service. IF you calculate that, it’s over 30% of the total population of the world. The people who do have a bank, they do not use it that much as the access cost to send money is pretty high. If you are looking to send money internationally, it costs more than 7% of the money you are sending. This is supposed to be resolved by Facebook’s Libra as they are aiming for it.
People are still using cash, more than you can imagine. More than 80% of the world is run by cash only, the issue is that its easy to get stolen and hard to move long distances. A lot of businesses lose around 40 billion dollars per year because of money theft. Rest of the 15% is consists of digital money or transactions.
On average the transaction costs are higher for poor areas compared to others. It is reported that over people pay over $4 extra per month in poor places just to get access to cash. If digital currencies are made available to these locations, not only it’ll save them a lot of money it can also open up a lot of job opportunities.
It doesn’t matter the place you are in or what job you do, if you have access to all these services, life becomes easier thus growth happens. This is what Libra is focused on, to make more money for everyone. It not only decreases extreme poverty percentage over 20, but it will also improve the earnings of a lot of people significantly. They have estimated that it should be above 20%.
How Libra Supports Everyone?
What they believe is that if you are sending money, you shouldn’t be charged so much that next time you hesitate doing the same. It should be easy enough for everyone to send money to each other from and to any corner of the world without spending too much on the cost.
- All you need is an internet connection and a smartphone to access Libra cryptocurrency.
- It will be stable as they have a reserve built just for cases when there are emergencies.
- It will be available throughout the world, hence a global currency.
- Libra is made to be delivered fast, no matter in which corner you are in.
- Since it’s built on blockchain, it’s pretty secure.
- Libra will be built in a way to be used on a daily basis.
Libra in Brief
Every time a Libra is will be created, a small portion of currency and profit is retained in the libra reserve. This ensures stability and value for the currency.
This is maintained by a network of validator nodes and the founding members of Libra association control the progress and profit of Libra.
Libra association is situated in Switzerland, in Geneva and is basically a non-profit membership organisation.
The libra blockchain is built on the Move programming language, which is a bytecode language that can be executed and used for money transactions.
As all of us already know, a blockchain built currency is pretty secure in general. Blockchain association itself never involves when it comes to transactions, hence kept really secure for anyone even trying to peep in. Consumer protection is always their first priority. Same applies for Libra association as well, they have been working closely with policymakers just to make everything safe and secure for the customers.
In order to achieve strong security and scalability, LibraBFT is built on a protocol, called HotStuff, that brings in years of advancement in BFT also known as Byzantine Fault Tolerance.