Facebook has announced the features of its cryptocurrency Libra, which will allow people to purchase goods or transfer money to people with almost zero expenses. According to its whitepaper, people can purchase or cash out Libra online or at a supermarket, and use it by applying third-party wallets or Facebook’s private Calibra wallet that will be developed into WhatsApp, Messenger, and its own app.
Facebook further announced that it is also launching Calibra that manages its crypto and shields users’ secrecy. It has also stated that Calibra will not mix Libra payments with client’s Facebook data so it can’t be utilized for ad targeting.
Facebook won’t completely manage Libra, but alternatively get only an eligible vote in its regulation like other establishing partners of the Libra such as Visa, Uber, and Andreessen Horowitz who’ve funded $10 million into the project’s progress. The agreement will strengthen the open-sourced Libra blockchain and developer policies with its private Move programming language and sign up traffic to allow Libra for payment and even provide clients commissions or remunerations.
The goal is: A stable coin mounted on a reliable and well-built open-source blockchain, supported by a stock of real assets, and supervised by an autonomous community.
The whitepaper further states that
Our hope is to create more access to better, cheaper, and open financial services — no matter who you are, where you live, what you do, or how much you have. We recognize that the road to delivering this will be long, arduous, and won’t be achieved in isolation — it will take coming together and forming a real movement around this pursuit.
Facebook Libra contains three components that will operate together to build its financial system. These are:
- It is built on a secure, scalable, and reliable blockchain.
- It is backed by a reserve of assets designed to give it intrinsic value.
- It is governed by the independent Libra Association tasked with evolving the ecosystem.
Libra is completely supported by a stock of real assets. A container of bank securities and short-term administration securities will be included in the Libra Reserve for every Libra that is produced.
Libra is not a blockchain?
Meanwhile, CTO of CasaHODL, Jamson Lopp has said that Libra is not a blockchain.
According to Lopp, considering that validators decide on modifications to the validator set, it seems like this issues in a similar predicament to what we observe in Proof of Stake methods — long chain attacks. If a satisfactory threshold of Founding Members’ private keys are negotiated, could an attacker reproduce a new record history from genesis? It’s unclear if the consensus protocol permits for rehashing old states or if it’s append-only.
He also stated that it needed 3 commands and ~5 minutes of installation to get attached to the Libra testnet via https://developers.libra.org/ but it doesn’t really operate a node, it just gives an interface for you to obtain applications to Libra nodes. Libra will essentially be an API standard for devs.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
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