And a long-awaited whitepaper of Facebook’s crypto is out on June 18, 2019, as scheduled. As per the whitepaper released, the cryptocurrency of Facebook will be called as ‘Libra’ and the coin will roll out in the first half of 2020.
Facebook Launches Libra Coin Whitepaper
According to the whitepaper, Libra coin will be built on Libra Blockchain and will be backed by stable digital currency. The coin will be launched in the first half of 2020. However, in the newsroom page of Facebook, the social giant talks about the plan for 2020 and states about Calibra which is a new subsidiary of Facebook. The statement reads that with Calibra’s financial service, users can participate in Libra network and as such, the very first product that will be launched by Calibra would be a digital wallet for Libra coin.
Today we’re sharing plans for Calibra, a newly formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app — and we expect to launch in 2020.
Mission Behind Libra Coin
Coming back to Libra whitepaper, the mission is to ‘enable a simple global currency and financial infrastructure that empowers billions of people’. With that being said, Facebook’s aim is to offer a financial solution to all 1.7 billion adults who are unbanked even if nearly 1 billion people have access to mobile phones and the internet.
The intro part of Facebook’s Libra whitepaper discussed Govt’s stance on crypto and explains how few existing projects are bypassing regulations. It says that Facebook believes in collaborations with entities including regulators to succeed in this sector, it reads that;
We believe that collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure that a sustainable, secure and trusted framework underpins this new system. And this approach can deliver a giant leap forward toward a lower-cost, more accessible, more connected global financial system.
Today, Facebook is coming together with 27 organizations around the world to start the non-profit Libra Association and…
Specification of Libra Coin
Concerning the stance of Libra as digital currency, the document kept on adding about a reliable digital currency and infrastructure that perhaps the world needs to witness ‘the internet of money’.
Securing your financial assets on your mobile device should be simple and intuitive. Moving money around globally should be as easy and cost-effective as — and even more safe and secure than — sending a text message or sharing a photo, no matter where you live, what you do, or how much you earn.
Further, the document defined Libra in three different aspects that made it an inclusive financial system and meantime empower billions of people.
- 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 cryptocurrency will work on its native blockchain called ‘Libra Blockchain’ which is an open source. On top of all, the blockchain has been built while considering security, scalability, efficiency in storage and throughput, and future adaptability.
Why Libra is a Stable Coin?
As stated Libra will be backed by a reserve of real assets and according to whitepaper report, it is because – Libra need to be accepted in many places and features easier access everywhere.
A basket of bank deposits and short-term government securities will be held in the Libra Reserve for every Libra that is created, building trust in its intrinsic value. The Libra Reserve will be administered with the objective of preserving the value of Libra over time.
As stated, the currency is designed to be a stable digital currency and will also be supported by a competitive network of exchanges to buy/sell the Libra coin with their fiat currency – of course, the exchange rate will be the center of attention by exchanges.
Libra is designed to be a stable digital cryptocurrency that will be fully backed by a reserve of real assets — the Libra Reserve — and supported by a competitive network of exchanges buying and selling Libra.
The Libra Association
More on this – it has also created an independent, not-for-profit membership organization called ‘The Libra Association’. The Association is headquartered in Geneva, Switzerland that will undertake the key task for providing a framework for the governance for the network and reserve and also help social impact grant-making in support of financial inclusion. It has also revealed its ‘founding members’ and notably, names of few members are those who were earlier reported as the investor to Libra project.
Following are the Founding members of Libra Associations wherein Facebook hopes to have approximately at least 100 members by the first half of 2020 when Libra coin is scheduled to actually launch in the market.
Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc.
Telecommunications: Iliad, Vodafone Group
Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
“Move”, The New Programming Language & Libra Blockchain
The Libra whitepaper further talks about a new programming language called ‘Move’, the launching intends o implement custom transaction logic and smart contracts on top of Libra Blockchain. On top of all, this blockchain of Libra is a single data structure which will record the history of transactions and states over time – however, in case of existing and previous blockchain, it views blockchain as a collection of blocks of transactions.
Because of Libra’s goal to one day serve billions of people, Move is designed with safety and security as the highest priorities, Whitepaper reads adding; To facilitate agreement among all validator nodes on the transactions to be executed and the order in which they are executed, the Libra Blockchain adopted the BFT approach by using the LibraBFT consensus protocol.
Concerning the single data stricter, Facebook explains that;
The Libra Blockchain is pseudonymous and allows users to hold one or more addresses that are not linked to their real-world identity.
So readers, what do you think about Facebook’s Libra Coin.? Do you think Libra coin will lead in crypto space just like Facebook in social media.? Let us know in the comment below
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com