- By Pierre-Alexandre
June 18th, 2019
Facebook has unveiled today complete details of its newly announced Libra Blockchain and native cryptocurrency Libra. Here’s everything you need to know about it.
After a lot of discussion over the last few months, Facebook has finally unveiled the whitepaper for its native digital currency which it calls as “Libra”. Projecting it as the currency for the entire global population, Facebook says that the mission for Libra “is a simple global currency and financial infrastructure that empowers billions of people”.
To create an inclusive financial system, the Libra currency is made of three parts which will work together:
- Libra works on a scalable, secure and reliable blockchain network.
- Governed by an independent Libra Association
- Backed by a reserve of multiple assets which can give Libra an intrinsic value
Facebook notes that the Libra currency being backed with multiple real assets will provide higher stability to the digital currency. Moreover, the Libra Reserve will hold short-term government securities along with a basket of bank deposits.
Libra Blockchain - An Open source Software Platform
The Libra currency contains all the cryptography features and will run on the Libra Blockchain the software of which is kept open-source. It means that developers and organizations can build their own financial services on the Libra blockchain thereby establishing a completely interoperable ecosystem.
Facebook notes that it wants blockchain developers and engineers to build more products on the Libra Blockchain network and provide value-added services to its customers. It notes that the open access will have low entry-barriers thereby encouraging innovation and healthy competition among peers.
Facebook assures that considering the future expansion of global financial services the Libra Blockchain is built with a ground-up approach while prioritizing the features of security, scalability, better throughput, efficiency in storage, and future adaptability.
The Libra Blockchain is designed using the “Move” programming language and a Byzantine Fault Tolerant (BFT) consensus approach. “Move” is a new programming language that can implement “smart contracts” and custom transaction login on the Libra Blockchain.
The Libra Association
Headquartered in Geneva, Switzerland, The Libra Association is a not-for-profit and independent membership organization. As Facebook describes, “The association’s purpose is to coordinate and provide a framework for governance for the network and reserve and lead social impact grant-making in support of financial inclusion”.
Thus the Libra Association acts as an entity that manages the Libra Reserves and ensures the growth and stability for the Libra economy. Besides, to ensure overall financial inclusion, the goal of the association is to promote an open identity standard for decentralized and portable digital identity.
The whitepaper notes that the Libra Association membership is formed through the network of validator nodes which operate the Libra Blockchain. All the members shall be geographically distributed across diverse business verticals.
Facebook has also named some of the “Founding Members” of the Libra Association which includes popular organisations across the payments industry, telecommunications, technology, blockchain, venture capital, non-profit, academic institutions, and other multilateral organizations. Some of the popular companies joining the Libra Project are Visa, MasterCard, PayPal, Lyft, Spotify AB, Uber Technologies, the Vodafone Group, Booking, Coinbase, Andreessen Horowitz, etc.
Facebook plans to launch the Libra Blockchain in the first-half of 2020 with at least 100 founding members on-board. Upon launch, Facebook and all the affiliates will share the same privileges, commitments and financial obligations.
The Libra Association will oversee all the development and evolution of the Libra Blockchain protocol. Besides, it will also continue to evaluate new techniques for privacy enhancements while simultaneously addressing the concerns for scalability and regulatory impact.
Facebook has also unveiled that they are building a digital wallet called Calibra, that will be integrated with Facebook Messenger.