FAQ Libra
On the 18th of June 2019, the social network Facebook announced the first branded cryptocurrency project — Libra. It is a "reliable digital currency and global financial infrastructure" based on blockchain technology that will allow billions of users to make financial transactions around the world. We have gathered the most interesting facts. The information is below.
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FAQ
- Libra Blockchain - what does it mean?
- What is the tech side of the project?
- What is Token Name?
- What special features has Libra coin?
- Who will be in the project?
- When the project will be launched?
- Where can I buy the Libra Coin?
- Exchange Rates
- Exchange Fees
- Do I need a special wallet and what is Calibri?
- What about Decentralization?
- Libra Blockchain Partners - who are they?
- Current Problems
- Resources
The Libra Blockchain is a decentralized, programmable database designed to support a low-volatility cryptocurrency that will have the ability to serve as an efficient medium of exchange for billions of people around the world. Libra should open the way for everyone to interact with money (including for their transfer around the world). The main objective of the project is to create an infrastructure that allows making a truly global tool for mutual settlements, which would combine the following qualities:
- stability;
- security;
- ease of use;
- availability.
The Libra Blockchain will be based on open source principles under the Apache 2.0 license.
It is also known, that during the construction of the project system it was used a new programming language — Move. With its help, smart contracts will be created in the Libra blockchain. Running on a Proof-of-Stake (PoS) blockchain with a 2-token system, this new financial infrastructure will rely on the BFT-consensus algorithm and will support smart-contracts after it completes its transition from a permissioned to a permissionless environment.
Initially, there was the information from the BBC that there were discussions about the name GlobalCoin, however, later the TechCrunch Agency announced that the coin will be called Libra. Additional prove might be the fact that Facebook has registered in Switzerland a financial and technical company called LibraNetworks.
Libra Coin will be presented as a stable coin and connected with the common fiat currency basket. According to the developers, the Libra cryptocurrency consists of three main technical solutions:
- Its blockchain (built from scratch), provides a high level of security, and is quite scalable.
- The exchange rate of the cryptocurrency is provided with a reserve of assets, which avoids excessive volatility.
- The project is managed by an independent organization Libra Association, which aims to develop the ecosystem.
According to white paper, the Libra cryptocurrency is provided with a reserve of non-digital assets (real assets). This approach will allow users to instantly convert cryptocurrency into the necessary Fiat. Libra will be backed by assets denominated in four fiat currencies: USD, EUR, JPY, and GBP.
In addition to Libra, a security token called Libra Investment Token will be launched. It will be used to Finance incentive programs and cover transaction costs. Libra Investment Token will be available only to accredited investors and will allow its holders to earn a percentage of cryptocurrency reserves.
Originally the project will be based on Facebook Network. However, Instagram and WhatsApp platforms will also participate.
The working version of the Facebook blockchain is planned to be launched in 2020. This information has also been confirmed several times by a variety of sources, including Facebook itself. So far, the payment method is available to Facebook itself and 27 corporate partners of the project. Among them are Visa, Mastercard, Uber, Spotify, and other well-known companies. Facebook users will be able to pay Libra from 2020.
According to the official sources, the coins will be available through many Apps. Moreover, it is planned to develop the possibility to buy the coin through special ATMs.
At first, Libra will not have a fixed exchange rate to the Dollar, Euro, and other traditional fiat currencies, but in the future, the developers intend to avoid sharp strong fluctuations, from which even the most famous cryptocurrency on the planet — bitcoin.
Facebook does not plan to earn on cryptocurrency — the payment system has no commission, and the company will pay users for operations with cryptocurrency.
In the first half of 2020 (during this period, it is planned to launch the mainnet project), users will receive a wallet for working with cryptocurrency, which will be called Calibra. Facebook promises that Calibra will be released as a standalone app for iOS and Android, as well as integrated into the company's existing platforms, including WhatsApp and Messenger. It is known that the use of the application will require the identification of the user with an identity document.
There is the internal discussion that the units will be closed by the server-validator in a quantity of 100 pieces. The owners of such nodes may be third parties, but there is one caveat: it will be necessary to make a modest steak of $10 million.
Currently, there are 27 key Libra Blockchain Partners. They are presented in the picture. By the time Libra is launched for a wide audience — it is scheduled for 2020 — Facebook expects that there would be at least 100 partners. Among the large companies that have not yet joined the project — the "big four" leaders of the technology industry - Apple, Google, Amazon, and Microsoft. Also, there are no banks in the Association.
Regulators in countries where there are no clear rules for working with cryptocurrencies can stand on the way of launching Libra. In may 2019, the USA Senate Banking Committee wrote an open letter to Facebook, demanding to disclose the details of the project. Senators are interested in how the company will process users' personal data.
Also, Facebook representatives are negotiating with the commodity futures trading Commission to determine whether the cryptocurrency falls under jurisdiction. Also, late in the evening on the 18th of June 2019, the USA authorities asked Facebook to stop the development of the Libra cryptocurrency.
Moreover, the UK has already expressed concern about Facebook's transition to the financial sector. Currently, the social network is involved in a new investigation related to the analytical firm called Cambridge Analytica and data hacking of 50 million Facebook users. A possible fine could be $ 5 billion.
Finally, immediately after the launch, it became known that in order to purchase a coin, you need to register and specify your passport data there. The society was furious as it is definitely not the way of the decentralization and anonymity.
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