The details of Libra, the cryptocurrency of Facebook, are already circulating on social networks. It is one of the most anticipated crypto actives of the year, which will be offered to the Facebook user base of more than one billion people.
Libra is not only surprising because of its possibility of overcrowding, but also because it is one of the most ambitious cryptocurrency projects carried out by a social network. With partners such as Visa, Mastercard and PayPal, the initiative seeks to position itself as a new Internet payment system.
In this article I compile the 5 most important details you should know about Libra, to be aware of what this new cryptocurrency of Facebook is about.
1. It will be a stablecoin
Libra is a crypto-active anchored to fiducidiaries, notes his white paper. The cryptocurrency will be supported by a basket of assets, including the US dollar, the euro, the pound sterling and the yen. The directors of Facebook say that with a stablecoin they will avoid a market of volatile prices, a feature that has been critical in cryptocurrencies such as Bitcoin or Ethereum to name a few.
The Libra reserve will be based on the investments of its users and consortium partners. Customers will directly buy the cryptocurrency with their fiat money, choosing the asset of their preference. The association Libra, organization after the cryptocurrency, will be responsible for storing and managing the money deposited by users.
In addition, each of the partners of this association - including Visa, Uber and Ebay - will invest about 10 million dollars to operate a node of the network of this cryptocurrency.
2. It will have its own wallet
The wallet is called Calibra and will be an application completely independent of the social network Facebook. The keychain can be downloaded on Android and iOS devices, says its official website. Users can integrate the wallet to Facebook or WhatsApp to make payments directly from these applications.
The wallet will have the same verification processes as banks and credit cards. Users can download the application on their cell phones and register with a valid identity document. The person may not have an account on Facebook or WhatsApp, as this is not a necessary requirement to use the wallet.
On the Calibra website, it is ensured that the wallet administrators will not share user information "unless they indicate it". However, all information about criminal activities or fraud will be reported to the authorities with their respective evidence.
3. It will be governed by an independent organization
All operations of this cryptocurrency will be managed by a non-profit organization, called Asociación Libra. Although Facebook is in charge of the development of the cryptoactive, it will not govern the project alone.
The consortium consists of more than 20 companies related to the financial world, online stores and academic institutions. For example, it is known that Visa, Mastercard and PayPal are partners of the Libra project. Likewise, companies such as eBay, Uber, Spotify, Vodafone and even Mercado Libre are included in this list of firms that will have a node in the network.
4. It will accept Facebook, WhatsApp and online stores
Users can buy products, finance content or send remittances on the Facebook or WhatsApp platforms, according to the information provided on the Calibra wallet website. It will be integrated into both applications, so users can send cryptocurrencies to other people without having to leave the social network.
The managers have also talked with several online stores to implement Libra as a method of payment on their platforms. That is, the cryptoactive could not only circulate in the aforementioned applications, but also in other parts of the Internet. In the same way, partners such as Spotify, Ebay, Uber or Mercado Libre could accept this cryptoactive on their platforms.
5. It will work without blockchain
One of the most controversial topics in Libra is that the cryptocurrency will not work with a blockchain. The developer Jameson Loop said that the Libra data will be protected in a system of updating and certification of the last state of the accounting book.
The Libra Association will be responsible for the process of registering the data since each of the partners will make up the group of validators of the network. Loop claims that Libra does not have a true data structure of a blockchain such as Bitcoin or Ethereum, but rather is a centralized network governed by intermediaries.
Andreas Antonopoulos, one of the leading experts in Bitcoin and cryptocurrencies in the world, also pointed out that Facebook's cryptocurrency does not meet the requirements to be a cryptocurrency. In this sense, there are more and more voices that not only question the possible privacy of Libra but also its more technical operation.
Facebook announced that Libra cryptocurrency will be ready to go to market next year. In other words, if the project follows a satisfactory course, users will be able to download the wallet from the application stores by 2020.