2019 – Posted in: Daily News

FACEBOOK’S CRYPTOCURRENCY

For: Mains
Topics covered: Libra – facebook’s cryptocurrency, Aim, Significance, Programming Language, Calibra

Facebook has confirmed that its cryptocurrency will be called Libra, though the social media network will not be controlling this currency.

Facebook is partnering with 27 other organizations across the world to create the non-profit Libra Association.
The new currency is aimed at improving access to financial services to those who are out of the banking system.
Libra will be powered by blockchain technology and the plans are to launch it by 2020.
Partnering for Libra is Lfyt, Uber, Visa, Mastercard, Spotify, Coinbase and PayPal.

Libra is aimed to lower barriers to entry and improve access to financial services.
There will be a dedicated Libra protocol for this cryptocurrency.
All transactions will be private with Libra currency.
The currency will be decentralized and allow seamless payments anywhere without any user fee.
The Libra currency will be accessible to anyone with an entry-level smartphone and data connectivity.
It will also be backed by a reserve in order to keep the value stable.
The global cryptocurrency will be made available around the world.
Bank deposits and short-term government securities will be held in the Libra Reserve for every Libra that is created.

Libra is free from speculation and not subject to the rise and fall in value, a problem that has plagued other cryptocurrencies.
The reserve will be invested in low-risk assets, which will “yield interest over time”.

Libra will also have its own Move programming language.
Designed to prevent assets from being cloned.
It will ensure that a resource has a single owner.
All of this is crucial for blockchain-based currencies.
The Libra Blockchain is pseudonymous and users will be able to hold one or more addresses.
These will not be linked to the real-world identity of the user.

Facebook is also launching a separate subsidiary company called Calibra, which will handle all cryptocurrency payments based on Libra, and the data will be kept separate from Facebook data.
Dedicated Calibra app.
The Calibra wallet will be built into WhatsApp, Messenger as well and the standalone app will be introduced next year.
Calibra will let you send Libra to almost anyone with a smartphone at low to no cost.
Calibra will have a dedicated team of experts in risk management to make sure people do not use the app to commit fraud.

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