Facebook, MySpace, and Multiply. What do these three have in common?
They are all popular social media platforms.
However, only Facebook was able to stand the test of time
and today, dominates the space by continuing to be innovative.
Facebook has announced its plans to launch their own cryptocurrency, the Libra coin!
What’s up cryptopeeps? It’s your girl Kyla, here to deliver your daily dose of crypto news!
For months there have been rumors circulating about Facebook launching their own cryptocurrency
and at last, they have confirmed it.
Introducing: The Libra Coin!
The main function of Libra is to allow its users to buy items and send money online with nearly zero fees.
Their goal is to provide financial services that would allow people to access and participate in the Libra network.
In line with the cryptocurrency, Facebook also plans to launch Calibra,
a digital wallet powered by blockchain technology, to store your Libra coins.
The wallet will be built into WhatsApp, Facebook, and Facebook Messenger.
But who are the people behind Libra?
If you think it’s just Facebook then you’re wrong!
Founding members who have invested at least $10 million for the project
have formed the Libra Association and each get a single vote in its governance.
Some notable companies that are part of the Libra Association are Visa, Paypal, eBay, Spotify, Uber, and many more!
Facebook has released 100 pages of documentation explaining how Libra and Calibra works
but we’ll save you the hassle and tell you all you need to know!
Number one: It’s a stable coin
The value of Libra is meant to stay stable.
Its value is tied to bank deposits and short-term government securities
for a slew of historically stable currencies like the Euro, Dollar, and Yen.
Due to these assets, the Libra Association can change the balance of its composition
to offset price fluctuations in any one foreign currency so its value remains the same all the time.
Number two: The Libra Blockchain
Compared to Bitcoin’s measly 7 transactions per second,
the Libra coin was designed to handle 1,000 transactions per second!
Talk about speed!
The Libra blockchain will also start off as “permissioned”
where only entities who meet certain requirements are admitted in a special in-group
that defines the consensus and controls the governance of the blockchain.
But in the future, it aims to be completely decentralized.
Number three: Libra’s Coding Language
“Move” was created to make it easier to write a blockchain code that follows an author’s intent
without introducing bugs.
It’s called Move because its primary function is to move Libra coins from one account to another
and never let those assets be accidentally duplicated.
Number four: 100% Circulation
Every time someone cashes in a dollar or their respective local currency,
that money goes in to the Libra Reserve and an equivalent is minted out to that person.
It works the other way around as well.
If someone cashes out money the Libra they give back will be destroyed.
This means Libra never runs fractionally.
Number 5: Incentives
Libra also plans to give incentives to users who encourage the business to flourish.
To get these rewards users that get people to go through KYC verification or wallets
and keep users active for a year will reap benefits.
Unfortunately, that’s all the time we have.
Facebook plans to launch Libra in the first six months of 2020
and I, personally, am very eager to see if they can pull this off, are you?
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Once again, I’m kyla and this is WeTheCryptos!