My money on my mind.
Libra is the new cryptocurrency Facebook is introducing. Calibra is the digital wallet which will store your Libra and handle Libra transactions. Facebook delivered the Libra white paper today, which explains the purpose and technology behind the cryptocurrency.
“Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.” (From the Libra White Paper)
One of the main ideas behind Libra is to offer a currency able to be accessed and spent by the underbanked of the world and to do so at nearly no cost to the user. Other cryptocurrencies have attempted to set up similar systems but none of them have the exposure and outreach of Facebook.
The volatility of cryptos, such as Bitcoin, has discouraged many from trusting digital currencies as a viable replacement for fiat currencies. We want crypto to be stable, without too much price fluctuation, if we are going to use it to buy groceries or any other common product.
I don’t know about you but I don’t want Facebook controlling my money or having any influence on its value.
Libra founders considered this. Facebook will not be in control of Libra. Instead, Facebook will be an equal partner with up to 100 well-qualified investment and charitable or research organizations.
According to Frank Chapparo and Aislinn Keely(writing for The Block), these entities have already joined with Facebook as nodes, verifying and validating transactions, for Libra.
Nodes are essentially the foundation of the blockchain network maintaining transactions in a permanent, immutable record. All nodes, processors or computers, must be in agreement for any transaction to be valid which helps or insures the blockchain to be unhackable.
Nodes communicate very fast. Libra will operate at 1000 transactions per second or faster. Using the Calibra wallet app one could send Libra across the globe to any location in seconds with almost no fee.
Since many different companies are and will be running Libra there is greater security for your money. The decentralized system allows for greater security and privacy through cryptography.
Calibra will be one of many wallets available. Organizations such as Coinbase or Stripe are likely to offer there own Libra digital wallets.
The potential for Facebook and its partners to create a new easy-to-use currency is exciting. I first saw the news about Libra on Vice News.
The launch for Libra and Calibra may be a year away but the wait will be worth it if we have a cryptocurrency which becomes mainstream and helpful to millions of people. People who currently can’t afford the high transaction fees of transferring money to loved ones in a different country.
One of the greatest challenges will be for people to understand using Libra. Cryptocurrency remains a mystery to most. I don’t think most people need to understand what a decentralized ledger is or how to program in the Rust programming language currently making up the Libra Core.
The main information people need is to know their money is safe and have a clear understanding of how crypto will enhance their lives. Hopefully, Facebook and its partners will provide a simple and direct explanation.
I will use stable crypto to transfer money, buy groceries, make online purchases, and pay the utilities if it is nearly free and as fast or faster than using my debit or credit card. Before the last big crypto crash, a little over a year ago, I was using crypto to make online purchases.
To see the world grasp crypto as the evolution of money could be a giant step in bringing value and honesty in all economies. Perhaps Libra will be the conduit for a new beginning in trade and compensation.
With Facebook and its partners help the world may go through the discomforts of change but will accept and welcome the more efficient, safe, and easy use of cryptocurrency.
Would you use Libra with your Calibra wallet? A braver new world is around the corner.