A Short Introduction To Libra Coin
Positive step towards cryptocurrency adoption
On June 18, Facebook unveiled the white paper for its new cryptocurrency, Libra. (You can read Libra’s white paper here.)
Overall, I think it’ll be good for the cryptocurrency space. I’ll tell you why in a moment. But first, let’s look at the details…
- Libra is not governed by Facebook, but instead the Libra Association. It will have 28 members including Facebook and Calibra (the subsidiary Facebook spun off to craft a separating line between Facebook’s data and social network and the operations of Libra).
- Libra is a permissioned blockchain. Bitcoin, by contrast, is a permission-less blockchain. Meaning, anyone can run a full node. On Libra, you must be a pre-approved partner. That makes it more like a traditional payment cartel-like Visa and less like a truly open blockchain.
- Per the white paper, an important objective of the Libra Association is to move toward increasing decentralization over time. (Calibra will offer a digital wallet for Libra. It will be available as a standalone app on smartphones, as well as a button within Facebook’s Messenger and WhatsApp products.)
- Libra’s partners are a who’s who of corporations such as Mastercard, Visa, and Coinbase. Check out the graphic below:
Source: The Block
- Libra is open-source, meaning anybody can build off it. We expect to see a proliferation of products and use cases once Libra launches.
- The Libra Blockchain is pseudonymous, not anonymous. The blockchain can be audited by anyone. But, per Libra, transactions are linked to account numbers that are not tied to real-life accounts.
- Libra is pegged and backed by other “low-risk” assets such as government currencies, money market funds, and AAA debt. Libra is designed to be stable and safe.
- The Libra Association does not set monetary policy. It mints and burns coins only in response to demand from authorized resellers. That means the value of Libra will fluctuate. However, it shouldn’t be very volatile.
- The Libra Association is keen on engaging with regulators in the jurisdictions they serve. We like this as Facebook has the resources to engage with regulators and help bring clarity to the entire crypto industry.
- The Libra Association is headquartered in Switzerland, not the United States. This may surprise some, but we think it’s a smart move as Switzerland offers a crypto-friendly regulatory environment.
Today, Facebook has over 2.6 billion users or 35% of the world’s population. And with Libra, it’s going to introduce a whole new set of people to cryptocurrency.
I think they’ll follow the natural progression… from Libra to bitcoin to altcoins… making the arrival of Libra a net positive for the entire crypto space.
The other benefit is the resources Facebook can bring to the regulatory front. That would not only help Libra but the entire crypto universe.
Libra is expected to launch in the first half of 2020.
Binance: Offers mobile app and probably the fastest growing exchange. If you need to pick only one, this is the best and #1 in 2019.
Kucoin: One of the strongest exchange that also offers a mobile app (Android and iOS). They have been constantly updating their mobile app to make it one of the best in the industry.
Gate.io: One of the best exchange for low cap coins. They also have mobile apps for both Android and iOS.
Thanks for reading! Feel free to check out some of my similar Cryptocurrency related post below.
- How to Earn Crypto Income From Komodo (KMD)
- “Lock” Your BIX Tokens Today to Continue Receiving Your BIX Incentive Reward
- How to Earn ONG From Ontology (ONT)
- Zilliqa: Progress and Update, June 2019
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