Libra – Facebook has finally revealed the details of its cryptocurrency, Libra, which will let you buy things or send money to people with no fees. Using Libra, you can pseudonymously buy or cash out at local exchange points like grocery stores, and spend it using interoperable third-party wallet apps. Or, you can use them at Libra Wallet – Calibra.
Libra – Facebook’s Global Digital Coin
What is Libra Coin?
Facebook today released its white paper that explains Libra. Facebook also released testnet where we can find the details of libra blockchain system before its public launch in the first half of next year 2020.
However, Facebook will not be controlling Libra completely, but it is working with other organizations like Visa, Uber and Andreessen Horowitz. These companies have invested $10 million each into Libra Association. Like many other crypto coins, Libra is an open-source technology, which means the technology is open to anyone. All the users have to do is to sign up businesses to accept Libra for payments and then give the customers with discounts or rewards.
Calibra is a subsidiary of Facebook which handles its Crypto deals and protect the users’ privacy by not mingling the Libra payments with your Facebook data. This action avoids Facebook to not to target the ads as the information is secured. However, the real identity of the user using Libra will not be tied to your publicly visible transaction. At the end, the founding members of Libra Association like Facebook will earn interest on the money the users held in reserve. This keeps the value of Libra stable.
Is Calibra The New PayPal?
It looks like Facebook had considered both thread and an opportunity in cryptocurrencies. While they held the promise of disrupting how things are bought and sold with elimination of the transaction fees with credit cards, they are aware that it is a dangerous threat to Facebook’s ad business that influences on what is being sold and bought.
For example, a big competitor like Google could monitor the crypto transactions, they can know what people buy and could muscle on the billions of dollars that are being spent on Facebook marketing.
How does Libra work?
Thanks for reading till now about Facebook cryptocurrency. By now, you probably have some idea on what is Libra. But How does Libra work? It is simple. You cash in a local currency and get a Libra coin. And then, spend them like dollars without any transaction fees with your real name attached. Because the transactions in cryptocurrency are anonymous.
Feel free to share this article is that’s all you care about.
To end with, there is an underlying technology and an association that governs this digital coin Libra. It is the wallets. Libra wallet is called Calibra where you can use the coin and the payments happen. In this article, we have tried to pull off most of the important facts in the 100 page documentation of Facebook digital coin Libra. Stay tuned to MadFoxy for more news and updates on Cryptocurrency and Facebook’s Libra and Calibra.
Also read: How is Automation determining technology?