Libra: Everything you need to know about Facebook’s new cryptocurrency
Facebook recently announced all the details of its new Libra digital currency, which will enable you to buy, make bank transfers and exchange money for a small fee compared to conventional banking and multiple cryptocurrencies. In Messenger, WhatsApp and all Facebook apps or using any e-wallet.
Facebook recently announced all the details of the e-currency and financial system that will be built using Blockchain technology, and later to start using Libra in the first half of the next year 2020.
Facebook will not control Libra’s currency completely but will be a key participant in the Libra community, which today includes 28 major companies such as Visa, Uber, and Mastercard. Libra Blockchain.
Facebook also announced the creation of a company called Calibra, which will oversee all transfers in the new cryptocurrency, protect the privacy of users and their money that will not be integrated into Facebook accounts to prevent ad targeting and increase security by anonymizing the account owner.
Facebook objectives of the Libra project
Facebook is trying to promote the integration of people who do not have bank accounts and want to make transfers or pay online, and the multiplicity of the sponsors of the project decentralized to ensure that no one party to control decisions and price.
Facebook believes that entering the cryptocurrency market is a double-edged sword. Controlling their spending will enable them to control the global online advertising market.
Unlike Bitcoin Bitcoin and Ethereum and other digital currencies that could not replace traditional currencies digital ones, they may check Facebook, they are dealing with more than 7 million advertising company and more than 90 million small company business, thanks to a large number of users may see technology giant controls Money and currency market in the near future.
Facebook hopes that this move will revolutionize PayPal, the world leader in online payment solutions, with more than 200 million accounts. However, having a bank account is a requirement to enter this eBay service. Facebook through Libra will provide the same services for less and decentralized fees. In management and with higher efficiency.
Given the consequences, the world can reject the idea of submitting to a financial empire of this magnitude, rejecting the new financial landscape and the idea of cryptocurrencies at all. Replacing all the money in our pockets for keys and symbols is illogical for most people.
How will we own and spend Libra?
The way Libra works can be explained simply by reviewing all the basic concepts related to it. At the beginning of next year, when Libra is launched and entered the financial market, everyone will be able to pay in traditional currencies, buy Libra credits, store them in an electronic wallet of cryptocurrencies, and spend them freely and naturally as if you were You have your dollar balance, for a very small transfer fee without having to disclose your name and without reading many of the instructions, instructions, and conditions applied by banks and transfer services.
You can keep your balance through Facebook Calibra Wallet, or by using any e-wallet including the wallets of the members of the Union of Libra Cibal PayPal, for example, and the method of payment and funds transfer is easily send a message in the application WhatsApp.
Libra Union to control the digital currency market
Facebook knows that the majority of people today do not trust the producers and management of cryptocurrencies, so it must mobilize the efforts of many financial and business companies in what is known as the Union of Liberia to help maintain the stability of the price of Liberia and adjust the foundations and rules of the financial system that will invade the world, and thus gain Facebook trust People have a large number of guarantors of their money, and maybe no one in the future will ever use Bitcoin or any cryptocurrency.
Each founding member of the LIBRA has paid at least $ 10 million to join the LIBOR. Members have the right to supervise and view all financial transactions occurring in the Calibra system, in addition to each member receiving their share of interest and financial fees commensurate with their investment. The new system will receive a large reserve of users who will pay for the new cryptocurrency.
Facebook says that the membership of the Libra Union will reach 100 institutions before the official announcement of the currency next year and that the possibility of joining is available to all, including Google and Twitter, the most important competitors of Facebook in the technical market, and will be held annually at the headquarters of the Union in Geneva, Switzerland Selected because of Switzerland’s weight in the global financial market, most banks are based there.
Who can join the Libra Union
We mentioned that any organization or company can join the union but must comply with certain conditions, the institution must have a fixed Internet connection of not less than 100 Mbps, and a full-time web engineer working full-time, in addition to a certain degree of security within the company, Each company must meet a number of conditions in order to be granted membership status.
The members of the Union will monitor all the contracts in the chain of blocks and raise funds to start the new economic system, in addition to design programs to incentivize institutions to engage in this financial system, and when the number is completed will be selected a director of the Union and the election of an executive board of senior representatives of companies.
Decisions are made by vote, and each union member has one vote no matter how big the company is globally – Facebook has one vote like the youngest member of the union, which will protect the new financial system from the control of a particular company over the decisions, and devote the idea of decentralization that will put the new currency Libra Trusted by all users.
Libra currency, price, and characteristics
Libra is symbolized by three wavy horizontal lines ≋ The new currency will maintain great price stability for the Union, which will prompt traders to adopt it without fear of falling price as it did with other cryptocurrencies, which are experiencing large fluctuations in the exchange rate continuously.
The name Libra comes from the ancient Roman word Libra, a unit of weight, as well as an attempt to play on the root of the French word Liberté, Lib, to emphasize the principles that a serious currency will seek to adopt.
The price of Libra is still uncertain, but its value will be close to the US dollar, making it easier for everyone to estimate prices with the possibility of spreading Libra around the world, as everyone will be able to get Libra against conventional currencies and vice versa comfortably and without loss at all.
Therefore, there will be no difference between the buy and sell prices as is known in all currency markets, thus avoiding Libra price fluctuations due to the stability of the price in the event of a change in supply and demand.
The Libra Blockchain technology
All transfers and payments in Libra are recorded in the Libra blockchain, an encrypted database that represents a public record designed to perform 1,000 transactions per second, which is of course much faster than Bitcoin can do with just 7 operations per second.
The chain is monitored and verified by two-thirds of the nodes running the chain, meaning that two-thirds of Libra’s investor members are required to register each payment or transfer, and project managers expect Libra to have about 4 billion users, half the planet’s population. Earth.
Conversions cannot be reversed in the Libra system. When one-third of the number of nodes are verified as a theft, all transactions will be paused, results will be investigated and updates will be sent to the Libra blockchain program to correct problems.
Transfers in the Libra system are not free, but a small fee is charged as a price for the energy needed to operate the system and conduct the process, and will be acceptable to all, and is intended to deter the creation of millions of transfers without justification and simply disrupt the system or cause poor efficiency.
Libra Programming Language
Libra’s blockchain technology is an open-source application written in Apache2.0, and any developer can start writing their application running within this system using a new Libra programming language called Move, which is still in beta before being officially launched simultaneously. With Libra operating during the first half of the next year 2020.
The move was created to make it easier to write commands in Blockchain without making mistakes that could cause gaps and breakthroughs that could cause the system to stop working and was named by this name because the most frequently used command in the blockchain is to transfer funds from one account to another.
The Libra consortium works with HackerOne, a site specializing in vulnerability detection that pays its users for loopholes in the Libra system. Libra is currently being developed in Rust programming language because of its high efficiency on security issues and the lack of movement yet.
Incentives offered by Libra to users and investors
The LIBRA wants to attract the attention of developers and traders to invest and work in the LIBRA market, so plans will be made to stimulate them, such as giving sites that market for the service in exchange for bringing new users to the LIBRA system, or giving traders a percentage of the profits in exchange for replacing traditional currencies with LIBRA which will increase the number of users.
Imagine that subscribing to some of the services participating in the LIBRA union will give you discounts if you use LIBRA instead of the traditional currency, or you will get a certain amount when you complete a certain number of transactions per year, certainly, it will be very encouraging.
Libra privacy procedures
Facebook works with more than 2 billion users around the world, and strives to maintain the privacy of their data, and believes without a doubt that privacy is a prerequisite for the success of the project Libra, it is a decentralized financial system available to all managed by several parties to achieve the principle of fairness and transparency and therefore must be protected by encryption good.
Facebook Calibra will not see your contacts, it will leave this option to the user, no personal information will be shared with advertising companies to target users, and of course you will not have to get a Facebook or WhatsApp account if you want to use Caliber and pay in Libra, social networking It will be completely separate from the new financial system.
What happens if my account is compromised or I am cheated?
If your account is attacked or fraudulent, just call our 24/7 support center and return the money to you. Caliber manages all the codes that must be saved.
Calibra is expected to be the most popular wallet for all users of the new cryptocurrency. A human doing in his daily life, in a simulation of what WeChat WeChat application can do within China only.
The future of Libra, whether it will reach globalization or disappear
Sure, transferring money and paying online is easy for people living in developed countries, where traditional banks are common, but a problem for poor countries that do not have access to these services or have very high fees. Protect their money in some countries where theft is widespread.
If the new system succeeds and we see people buying everything within Facebook apps and its currency, Libra, it would be a great investment for Facebook especially and for Libra members in general. If the system is hacked and proven unreliable, it would be a disaster for everyone.
Facebook seeks to reinvent the principle of money in the world, and we will see the future if it will work or it is just a bubble and disappears after several years and people return to the securities, which is still acceptable to all.