On Tuesday, the company announced Libra, a decentralized cryptocurrency that will allow Facebook and WhatsApp users to easily send money and shop online.
The news, however, is much more important than that, transcending Facebook itself in many ways. Read what all this means in our Facebook deep dive balance, here.
Libra is not just a Facebook project. It is supported by the Libra Association, based in Geneva, Switzerland, a non-profit organization with a long list of founding members who will jointly make decisions about Libra. Besides Facebook, the list includes MasterCard, Visa, PayPal, Stripe, eBay, Uber, Lyft, Spotify, Coinbase, Xapo, Andreessen Horowitz, Union Square Ventures, Mercy Corps and Women's World Banking.
These companies and organizations, which will be joined by others in the future (the goal is that the list of members has 100 names), will make decisions together regarding the orientation of the Libra. , and Facebook tells me that she will not have any particular preference. other members.
Balance, the stablecoin
Libra itself is a stablecoin – a special type of cryptocurrency that remains relatively stable relative to the value of a relatively stable real asset, such as the United States. dollar. Unlike most current currencies (USDC, TUSD and DAI are examples), the value of the Balance will not be indexed to the value of a single fiduciary currency (like the US dollar), but its value should never increase. down 10% on a daily basis as sometimes happens with cryptocoins such as Bitcoin and Ethereum.
Libra will be guaranteed, which means that there will be $ 1 of bank deposits and short-term government securities guaranteeing 1 dollar of Libra.
The main driver of the project, according to Facebook, is to create a new global currency that will include 1.7 billion people who are still not funded. The main features are the low cost of transactions, the ease of use, the security and support of many powerful supports that will promote adoption.
Libra, the blockchain
Libra is based on an entirely new blockchain, a heavily modified version of The recently announced HotStuff by VMWare. It's complex things (again, I went in more detail right here), but in its very short version, it looks like Bitcoin in the sense that it is a digital currency and to Ethereum in that it is an intelligent contractual platform. It is faster than both (potentially allowing thousands of transactions per second) but also less decentralized, since it currently only allows partners to run on a node, which is the heart of the network.
The Libra Blockchain will be open-source and, once launched, which should be done in the early part of 2020, everyone will be able to use it and create products over it. Facebook expects most of the services and products built above Libra to be related to finance.
Calibra: Facebook's wallet for Libra
One of the first applications built on top of the Libra channel chain will be Calibra, a cryptocurrency wallet that will allow users to receive and send Libra. Unlike Libra, Stablecoin, and Libra, the blockchain, Calibra (the company) is a subsidiary of Facebook, and the development of Calibra (the wallet) will be under the control of Facebook.
Kevin Weil, vice president of products for Calibra, said that it would send users and receive money "instantly, for little or no cost, to anyone in the world. or in any company of the world ".
The most important aspect of Calibra will be its integration with Facebook Messenger and WhatsApp. It will allow users of these applications to easily register, add money to their wallet and send, receive and pay with Libra, all from the applications. Calibra will also be available as a stand-alone application for iOS and Android.
Registration at Calibra will require a verification from KYC (know your client), which means that users will need to download some kind of government issued identifier before they can start using the service. Kevin Weil said that the process of integration would be as simple as possible, "almost like a discussion." Important: Facebook claims that Calibra "will not share account information or financial data with Facebook or any other third party without the consent of the customer".
In terms of security, Calibra will have built-in fraud protection, password recovery and multifactor authentication. A characteristic of Calibra is that cryptocurrency portfolios will not benefit from 24×7 customer support.
However, Kevin Weil told me that it was "too early" for Calibra and that Facebook still had "a ton of work to do" before Calibra could be made public. To be informed about the availability of Calibra, you can register at the address calibra.com.
(tagsToTranslate) facebook (t) libra (t) libra-blockhain (t) libra-association (t) project-libra (t) tech (t) technologies-large (t) cryptocurrency-blockchain</pre></pre>