Facebook Libra is a crypto concurrency which lets you buy things or send money with almost zero processing fee. You can buy Libra online or exchange for hard cash or exchange points at grocery stores. You can spend it through a third party wallet app or Facebook’s Calibra wallet. Calibra is will be built into WhatsApp, Messenger and Facebook. Facebook plans for a public launch of Libra in 2020.
Libra is governed by Facebook and other founding members like Libra Association, which includes Visa, Uber and Andreessen Horowitz. The Libra Association adopts a neutral status and strong support for innovations in global finance. Each of the founding member have invested $10 million into operation of Libra. The association plans to promote Libra and developer platform with Move programming language. It will also sign up with business to accept Libra for payment and offer discounts and rewards to customers.
Facebook’s Libra and Calibra
Facebook’s subsidiary Calibra handles crypto transactions, user privacy. Libra payments are kept separate with Facebook data and you cannot use Libra for ad targeting.
Facebook plans to make Libra a global digital currency to promote financial transactions for people who do not have bank accounts. Libra has more privacy and decentralization built in it compared to other crypto currencies. Libra is brought out to disrupt current buy and sell methods by completely removing the transaction fee. It benefits billions of people globally who do not have a bank account but need an way for online financial transactions.
Facebook wants to make Libra as next level of Paypal, allowing people to buy, send money with almost zero transaction fee. There are issues like service charges, card fees. You can use Libra to pay anything from rent, college fees, buy a coffee, send money abroad and you do not have to bother about any insecure checks.
How Libra Works
Libra is designed to scale for large number of transactions, unlike Bitcoin and Ethereum. Moreover Libra remains stable and is not affected much by unpredictable swings. People can take Libra for buying and spending instead of dollars. With 7 million advertisers and 90 billion small business and Facebook can create a medium and relationship among buyers and merchants. This can pave out way for Facebook to provide a easy mainstream audience for buy or sell with Libra.
You need to buy Libra using your local cash and then use Libra spend like dollars with negligible transaction fees or your real name attached to it. You can even exchange Libra for cash. With Facebook’s technology for Libra and the association that governs it, you can use and make payments using Libra apart from enjoying its benefits.
In order to make people trust Libra, Facebook involved the non profit organization, Libra foundation, to develop token and govern the rules. In case you are hacked or lose access to your Libra account, Calibra will refund the lost money immediately using online chat support. Libra has the potential to get more money for working parents and help people to retain their financial credit when they loose their physical assets. Facebook plans to include 100 founding members to Libra before the official launch in 2020.
All Libra payment writes a permanent record into Libra Blockchain, which is a crypto graphically authenticated database. Libra Blockchain acts a public online ledger and it can handle 1000 transactions per second. The blockchain is constantly operated and audited by the founding members to ensure governance and validate its operation as a crypto currency.
Future of Libra
With the Libra, association, open development platform and strong backup support, Facebook plans to create global coin that help millions without a need for a bank account. It could become super quick to buy, sell or send money with its negligible transaction fee. Facebook made an attempt to reinvent the global currency. We need to see its success when Libra will be launched in 2020.