ALL YOU NEED TO KNOW ABOUT FACEBOOK LIBRA

Hello, my people, this is Himanshu Goel, today we are going to discuss a new cryptocurrency coming from top market leaders called Libra, an initiative from Facebook. But before we begin let's learn about cryptocurrency.

WHAT IS A BITCOIN CRYPTOCURRENCY?

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

[source: Google]

In simple words, Cryptocurrency is a digital asset used as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central banks and alter institutions. 

Since Bitcoin is not managed by any financial institutions and central authorities, it doesn't have any intrinsic value (the actual value of an asset), Bitcoin value is only because of the demand as there are only 23,700,000 bitcoin addresses as of now, that's why bitcoin value fluctuate too much.

WHAT IS LIBRA?

Libra is also a cryptocurrency but it is a way different from bitcoin, since

1. It is built on a secure, scalable, and reliable blockchain;
2. It is backed by a reserve of assets designed to give it intrinsic value;
3. It is governed by the independent Libra Association tasked with evolving the ecosystem.

Libra Blockchain: Because it is intended to address a global audience, the software that implements the Libra Blockchain is open source called "MOVE" it is a new programming language — designed so that anyone can build on it, and billions of people can depend on it for their financial needs. To enable the Libra ecosystem to achieve this vision over time, the blockchain has been built from the ground up to prioritize scalability, security, efficiency in storage and throughput, and future adaptability.

Libra currency: Unlike the majority of cryptocurrencies, Libra is fully backed by a reserve of real assets. 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.

Libra association: The Libra Association is an independent, not-for-profit membership organization headquartered in Geneva, Switzerland. The initial group of organizations that will work together on finalizing the association’s charter and become “Founding Members”.

• Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
• Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Mercado Pago, 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

Libra hopes to have approximately 100 members of the Libra Association by the target launch in the first half of 2020.

Libra Association

ROLE OF FACEBOOK IN LIBRA FORMATION.

Facebook teams played a key role in the creation of the Libra Association and the Libra Blockchain, working with the other Founding Members. While final decision-making authority rests with the association, Facebook is expected to maintain a leadership role through 2019. Facebook created Calibra, a regulated subsidiary, to ensure separation between social and financial data and to build and operate services on its behalf on top of the Libra network. 

Once the Libra network launches, Facebook, and its affiliates, will have the same authority and responsibility as any other Founding Member. As one member among many, Facebook’s role in the governance of the association will be equal to that of its peers.

HOW LIBRA IS DIFFERENT FROM OTHER CRYPTOCURRENCIES?

1. Libra is based on a new programming language called MOVE,
2. Backed by reserves, building intrinsic value,
3. Managed by an association of independent members,
4. Libra's objective is to create more access to better, cheaper, and open financial services.

If you are reading this, that means you have read the post now tell me would you like to use, libra or bitcoin tell me in the comment section below. Share this post with your friends and family and follow us on Instagram.