Libra is a permissioned blockchain digital currency proposed by the American social media company Facebook, Inc. Which instantly signals that it’s far more better than Bitcoin as it was decentralised and banned in most countries.Libra is promised to be managed and cryptographically entrusted to the Libra Association, which comprises of companies from various sectors of the tech industry including payment, technology, telecommunication,etc.
Libra has also solved 3 major problems which destroyed the rise of Bitcoin. First, Libra is not decentralized,i.e., which means that it’s more like PayPal rather than Bitcoin. Second, it relies on a trust in the Libra Association as “a de facto central bank”. Third, to avoid Currency value Volatility, Facebook announced that the reserve basket would be made up of: 50% United States dollar, 18% Euro, 14% Japanese yen, 11% Pound sterling and 7% Singapore dollar, which are the most Stable Currencies in the world to ensure that the value of the currency remains same in all situations.
Facebook has announced that each of the partners will inject an initial US$10 million, so Libra has full asset backing on the day it opens.
Libra can be brought via Libra Wallet apps on Phone or dedicated Libra Convenience stores in exchange for Conventional Currency. Libra service partners, within the Libra Association, will create new Libra currency units based on demand. The users will be able to spend thus purchased Libra Currency in buying many of the services from many websites and online retailers because the retailers are partners in the Libra Association. Facebook has also been working on it’s own Libra Wallet app called Calibra which will be at the forefront of the Libra System. Libra currency units will be retired as they are redeemed for conventional currency.
Initial membership as of October 2019 for the Libra Association was:
Payments: PayU
Technology and marketplaces: Facebook’s subsidiary CaLibra, Farfetch, Lyft, Spotify, Uber
Telecommunications: Iliad SA, Vodafone
Blockchain: Anchorage, Bison Trails, Coinbase, Xapo
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
Seven other companies had been named as Libra Association members in the initial June 2019 announcement, but left before the first Libra meeting on 14 October 2019: Booking Holdings, eBay, Mastercard, Mercado Pago, PayPal, Stripe and Visa Inc. Visa chairman and CEO Alfred F. Kelly clarified in July that Visa had not joined, but had signed a nonbinding letter of intent; and that “no one has yet officially joined.” He said that factors determining whether Visa would, in fact, join included “the ability of the association to satisfy all the requisite regulatory requirements.”
Press coverage around the initial Libra announcement noted the absence of Apple Pay, Google Pay, Amazon and of any banks.
The Libra Blockchain is operated by a network of validator nodes. The evolution of the blockchain will be overseen by the Founding Members of the Libra Association, and each member will be responsible for running a validator node. As the network grows and becomes more self-sustaining, the Libra Association will work to gradually transition to a permissionless mode of operation.
Libra is planned to be unveiled in first half of 2020 . Whether it works or not, we will witness another attempt at the Blockchain Currency Empire. If it does work, it could potentially “change the World”. Until it does, Fingers crossed….
THE WHISTLING WIND 