Libra Concept in Blockchain Technology
What is Libra?
Libra is a new cryptocurrency announced by Facebook social media and will lunch in 2020. It is entirely open-source and is using blockchain technology. Libra is programmed with a new programming language by the name of “move,” which is Facebook copyrights. This currency will be managed or governed by the independence Libra association like Facebook and some payments, NGOs, and telecommunications industries like Paypal, Mastercards, eBay, Uber, Coinbase, Mercy corps, women’s world bank, etc.
According to Libra white paper notes, it is a global currency that will empower billions of people around the world. Facebook announced Calibra as a digital wallet for Libra. It allows everyone to send/receive the cash quickly through their smartphones and computers.
Why did Facebook announce Libra?
Facebook says that it is around 2 billion people around the world who do not have access to the Banks and it is difficult for them to use the banks, therefore Libra will help them to have their own, secure, scale-able, and reliable account. These people can easily transact their money and communicate with online stores as easy as sending a text message to all around the world.
Is Libra Centralized or Decentralized?
As Facebook announced, Libra is decentralized cash, which is run on the Blockchain network. Libra algorithms are the same as consensus algorithms which makes Libra completely decentralized, but as I read and searched, some factors show Libra is not decentralized. The factors are:
Libra nods are the large industries who can pay 10 million dollars for entering into the Libra association, and this is an awful system. Because the nods are multi-millionaire companies, all have the same ideas, and they may create unity for accepting or denying transactions according to their minds. Whereas Ethereum and bitcoin nodes are simple users from all around the world like me, Ahmad or john with different thoughts, and it is hard to convince them to have a single mind.
Libra’s transactions can be mutable because Facebook has full controls on Libra; any government or lobbyist community can force Facebook to freeze transactions or accounts.
Libra could threaten the U.S. dollar for the following reasons:
Libra invented by a giant social media which has about 2 billion users around the world so that it will spread quickly to all the users.
Libra could be used through mobile easily, and there are about 3 billion smartphone users in the world who can Libra with their mobile.
By Libra, you can send transitions quickly and comfortably like sending a text message.
Each user can have their secure account without interfering with third parties.
The transactions are free or at lower costs.
Libra governed by some big and rich industries, which are supporters of Libra. These companies can give credibility and reliability to Libra.
If the Libra became trustful and the users see the mentioned advantages of it, Libra will convince the active Facebook and smartphone users and become global parallel electronic cash for dollar. Undoubtedly Libra will threaten the use and credibility of the U.S. dollar.
Reactions of governments and banks to Libra
Libra uses Blockchain technology. It means it does not have any central storage and servers. And the nodes have full control of the network; therefore, it is challenging for the banks and government to rule out the company activities regarding cryptocurrencies. Thus the government should spread the proper use and cryptocurrencies and digitization. Also, the banks must update their financial system and become digitize besides their regular banking system.
My thoughts on Libra Future
Cryptocurrencies and digital money will have oscillations in the future because It will need a long time to convince the users about scalability, trustworthy, stabilities, and securities of digital money. Most of the people do not have any information about technologies behind digital cash so that they won’t trust digital money soon. Digital money needs the support of giant companies and governments. In the first step, the inventers must convince the governments to support digital money. The second step is advertisements of digital cash in social media. And the third step is easy changing of digital cash to real currency, which means that everyone should be able to change any cryptocurrencies to the dollar and other real monies without difficulties.
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Disclaimer: The views expressed by the author above do not necessarily represent the views of the Ethereum Foundation.
