Press Release: July 04, 2019
Facebook, is a Web2 based social network having 2.4 billion active users, has recently announced a move into the Web3. “Facebook launching a cryptocurrency” media is introducing. The reality is more complex. Facebook is planning to launch its own distributed ledger, token—Libra—and the Calibra wallet manages a native token. Libra It is to assume that through the backdoor of this wallet the company is making a move to rule the future of providing global sovereign digital identities. Facebook users will be able to use Libra Tokens for online purchases and P2P remittances through that wallet for “low to no” fees. The whitepaper indicates that Libra, a stable token, which backed by various fiat currencies. Serious competition for fin-tech providers and credit card companies. Could be a token which charges merchants as much as 2.5 percent or more on purchases. It could moreover compete with money transfer companies that many expatriates all over the world use to send funds to friends and family in their home countries.
Key elements of the Libra Network :
Libra runs on an authorized aka federated distributed ledger, as a security mechanism. which does not use a “chain of blocks”. Security is come up with by legal contracts between known actors of that federated network. A time-stamped chain of blocks yet is very important without empowerment networks like Bitcoin or Ethereum. Where validators can join and leave the network any time, in a permissionless fashion.
Since Libra runs an authorization system. It can use a more productive consensus algorithm that doesn’t need to batch transactions. Because the transaction history is much less likely to operate in a setup of trusted network actors. Libra uses a tweaked version of Practical Byzantine Fault Tolerance(BFT), a seasoned and well-known algorithm. LibraBFT seems to be a fork of the hot stuff consensus protocol.
The Libra network is delineated with smart contract capabilities. “Move” is the vernacular smart contracting language. The question of whether it makes sense to develop a new language unresolved. It is still unpredictable how feature-rich and developer-friendly the language is. Both aspects would sway issues of smart contract security and network resilience. Like Ethereum, Libra smart contracts will obligatory network payments for running code. Means that all operations need payment of Libra as network transaction fees.
Governance of the Network
As an authorized ledger, only members of the network can validate transactions. “Founding Members are consortium with established reputations, making it improbable that they would act maliciously,” the white paper states. These activities range from traditional payment networks. (Mastercard, Visa) to the internet and gig-economy giants (eBay, Lyft) to blockchain natives, (Xapo) to VCs (Andreessen Horowitz, Thrive Capital)”. Other partake node range from NPOs to Paypal, Uber, Women’s World Banking, Mercy Corps, etc. The Libra Association headquartered in Geneva, Switzerland with almost 30 stakeholders so far.
Facebook is planning to launch a cryptocurrency. It hopes will “transform the global economy.” As seen with Facebook’s ongoing discourse with the CFTC. The era of unregulated digital assets have come and gone: ICOs currently raise 58 times less than they did over one year ago, while STOs experienced a 130% increase in Q1 2019.
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