On Tuesday which was on the 18th of June 2019, the CEO & Co-Founder of Facebook, Mark Zuckerberg had officially spoke on the company’s plan to introduce a whole new digital cryptocurrency that would be called Libra.
Libra is expected to be introduced in 2020. Facebook since quite some time had been working on this project while keeping it a secret. Libra is expected to do big in terms of being featured by a reckoning company that will cater to its finance, retail and launch into the technology market.
Mobile Application development company Texas confirmed that Libra Association was designed by Facebook and it is partnered to manage the technical aspects of the project to make sure that everything is handled appropriately. As per the association, it is Libra’s vision to cater to and empower billions of people. Libra Coin
By aiding the 1.7 billion audiences who do not have a bank account and for the digital currency will be an ideal option to opt for. Unlike what many believe that Facebook’s cryptocurrency Libra is nothing as a Bitcoin here are a few defining answers to essential questions that will help clear everything to you in regards to Libra Coin.
What is Libra and how will it function?
Eventually, the cryptocurrency coin aims to develop a universal Libra payment system that can easily and effectively route transactions around the globe while not pertaining to any transaction fee. Libra Coin would be an off the fiat currency that will be assisted by the governments that issue currencies. Even so that Facebook has confirmed that they will be financed by a reserve of assets including bank deposits and even short term government securities. Meaning that Libra is not only a Facebook backed cryptocurrency as this will ensure that the stability and won’t experience variant changes in the value of it as was seen with the Bitcoin.
Libra Facebook’s cryptocurrency is functioned to work in the Libra blockchain. The Libra Blockchain is a network that is connected to nodes and computer servers. In which each node in the ledger would be required to maintain and validate transcripts. An application development company in Texas also stated that the blockchain tech will have an important role to ensure that Libra is accessible to everybody, while complying transparency, protecting the user’s anonymity and to imply no transaction costs.
Libra more or the less will operate like Venmo though it will not depend on a banking system. This will grant the users to exchange the currency from any preferable application of their choice. This feature will be found to be quite satisfying as Facebook will not be the only entity that will be creating the Libra cryptocurrency apps.
Would Facebook have direct control over Libra?
Facebook is a single from many other members of the Association. Affirming that most defiantly Facebook won’t have direct control of the new cryptocurrency. As the main aim to create the Libra Association, whose headquarters resides Switzerland is meant to maintain a single company from having complete control over the network. Facebook has one single vote that is like the other members.
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With that being said Facebook though will act as a major player during the initial stages of the cryptocurrency. Besides operation, the Calibra wallet will also cater to maintain a prime role throughout the entire year of 2019. Though as the Libra network is officially released the responsibilities and role of Facebook would decline and no more will the founding members have any power.
How does Libra vary from the other Cryptocurrencies?
Libra is different from the other cryptocurrencies in the manner that its value won’t vary and will be pegged to a basket of assets that anchor as its value. The Libra Association has not disclosed the assets but has confirmed that they would include bank deposits and even governing securities. Secondarily it is also important to understand how Libra to the other cryptocurrencies such as Ether and Bitcoin. Libra is an alternative to Bitcoin since it is completely digital and is not visible or in the form of a physical note or coin. And even like other cryptocurrencies, the transactions would be recorded on a blockchain (software ledger).
The Privacy Concerns regarding Libra?
This is an important aspect that everyone is wondering and considering how Facebook was accused of misusing their user’s private information. As it is difficult not to be skeptical in regards to the privacy concerns that are linked with Libra. Though according to Libra whitepaper Facebook won’t be importing contacts nor the user’s identity details yes it will ask for permission to be permitted to get access.
The paper also suggested that the network will not be sharing any transaction data back towards Facebook rest assuring that the user will not be exposed to personalized ads, news feeds and etc. meanwhile the attempt to search criminals a thieves the data of such people would be provided anonymously to the law enforcements were a requirement of such would be required.