Libra A cryptocurrency with a lot of potential created by companies such as Facebook, Shopify and Uber hopes to bring to cash what the internet used to send mail. Blockchain’s invention has made instant, global and affordable payment feasible and Libra’s aim is to make it available.
What Exactly Is Libra?
Two main aspects that Libra will bring to as well as the market for cryptocurrency as well as the entire world:
Financial Network
To serve as an international payment system, and to “bank the inaccessible”, Libra Protocol operates as a global financial network.
It currently consists of the Libra coin , which is traded through it, however it is intended to include more currency, coins custodians, channels, and even custodians in essence, a replicating of the current financial infrastructure.
To function safely and securely for the billions of people who use it, Libra has chosen to be a permissioned cryptocurrency, meaning that users must have the permission of Libra Association (and therefore be a part or a member of) to become a node operator.
This includes technology as well as finance and NGO organizations like Coinbase, Xapo Holdings, Facebook, Spotify, Shopify, Uber, Andreesen Horowitz, Creative Destruction Labs, and Women’s World Banking.
Libra Protocol
The Library is an electronic currency, just similar to Bitcoin and Ethereum but it is based with it’s own protocol for blockchain. It operates in exactly the same way as Bitcoin or Ethereum as it has node operators who maintain the identical “State” for the Blockchain and reach a consensus on the approval of transactions by users in a certain way which means that they update their status.
Libra Protocol, like Ethereum Libra Protocol, as with Ethereum is a blockchain that uses its own code language, known as “move”. This is the reason it can be said to function as an entire financial network. Similar to how solidity on Ethereum allows users to build smart contracts. “Move” will allow users to build the own “resources” which are basically currency, coins and contracts.
This gives the possibility for a small town in Africa to develop their own currency locally or for a specific seller to create the currency. In addition, it provides an easy access to credit, currency as well as all other resources available on Libra.
Which Is What Is Point Of Libra?
Two billion people around the world aren’t banked and yet one billion of them have an mobile phone and half of them have access to the internet.
Libra is designed to help these millions of people who suffer from lack of financial resources, a low income, and are often forced to pay steep (7 7 % or more) charges to send money.
Libra intends to make money transfers as simple as sending a text message, which means that no matter if it’s micro payments, paying those earning low wages and sending remittances to relatives abroad, or paying for groceries and other goods, the Libra Protocol can facilitate this for the people who do not have bank accounts.
It is a free and open source protocol. Libra Protocol is open source and is managed by the Libra Association, made up by node operators which means it is more secure, secure and fully integrated financial system as opposed to traditional banking systems.
Did Facebook Invented Libra?
An alternative method of thinking about it is that Facebook was the first to form the Libra Association and is one of the founding members alongside the other members mentioned above.
The protocol was created through an open-source group composed of programmers, including those from the association and Facebook via their subsidiary Calibra.
The creation of Libra could be achieved if were not for the numerous innovations that have occurred during the past decade in the world of blockchain.
Libra is planning to establish a payment system for billions of users. It’s not possible unless technology exists to achieve this, and because of the open-source community the development of different blockchain networks, it’s absolutely possible to accomplish this right now.
What Are The Thoughts Of Crypto Enthusiasts Consider Libra?
The general attitude of Libra within the crypto industry is not very positive. Crypto enthusiasts are innately untrustful of two basic elements of our society: governments, and corporations. Both constitute the foundation of Libra.
The close association with Facebook at the time of its launch forced Libra into a box with a red tape which was swiftly discarded in the majority of cryptocurrency enthusiasts for violating the fundamental rules of crypto, like privacy as well as freedom and absence of middlemen.
On the whole the majority of crypto enthusiasts are in support of the work Libra intends to achieve and have long wanted bitcoin, or any other cryptocurrency they’re a totalist about to fulfill this function as a digital currency that is global that could bank those who aren’t.
While they have made sacrifices Many crypto enthusiasts have accepted Libra as a positive idea, as it could lead to an transfer of billions of dollars into the crypto world.
Where Can I Purchase Libra?
Libra isn’t completely launched yet it is being tested (open source on Github). This is why the Libra Association isn’t yet offering Libra to the general public at this time, but once it is, you’ll be able purchase directly through the Association via an option on Facebook as well as store your funds in reserve in order to finance the Libra you purchase.
Can Libra Be Supported With The US Dollar?
It is true, however not only the USD. Libra has been designed to have an unchanging value, so that the users can maintain their purchasing power. That is, they are aware that what is worth of Libra today will remain identical tomorrow and into the future. This is made possible through the Libra Foundation having reserves in place to ensure the value of each Libra.
Simply put, whenever anyone purchases Libra in fiat and it is the Libra Foundation will put that fiat into Reserve and hold it in the form of high credit ratings currencies and public credit (bonds). Issuers with high credit ratings include those like the European Central Bank, the US Federal Reserve, and other.
The sum in these funds is the worth of Libra therefore consider it a soft-peg. It is linked to the sum of these assets. As time passes, these reserves will be able to earn interest and is what the Libra Foundation will reinvest in research and development.
Is Libra A Good Investment?
If you’re an entrepreneur located in rural areas or a third-world country, or you regularly encounter expensive costs and high fees, then Libra could be a great investment. Consider it an investment into your capability to utilize money, not as an the investment to earn more.
What Will Libra Influence Bitcoin?
Is Libra Dead?
At the time Libra was first introduced, it was met with a hefty opposition from both the community and regulators alike. The most prominent arguments were privacy concerns relating to the fact that it was created by Facebook which was a major concern at the time when Mark Zuckerberg was appearing before the Senate on that exact topic.
The companies in the sector, especially R3 has criticized Zuckerberg as well as members of the Libra Association as being irresponsible and ignorant in their premature launch, citing a lack of preparation for regulation, as well as Facebook not understanding the way financial systems function.
The original plan was to start in the first half of 2020. However, due to the regulatory issues including the risk of privacy issues, Libra replacing the dollar and criminal activities, the launch could be delayed for a long time.
Conclusion
In the end, Libra may never go anywhere, it might be shattered or stopped by any number of regulatory hurdles. These can vary from country to country.
What Libra has accomplished and is expected to do is establish legitimacy for the revolution that blockchain and digital currencies could bring to emerging economies and to the world.
They have prompted to have a debate at a global scale about how to proceed with the coming version of the financial infrastructure and started the process of examining and implementation of rules which will allow an economic future that is the future.
