What Is Facebook’s Libra?
Libra is a new cryptocurrency proposed by the social media giant Facebook. They announced the coin on June 18, 2019 for those staying in underdeveloped countries and having no access to banks as well as other conventional financial services.
Libra is supposed to be sent immediately all over the world without any transaction fees. Facebook and its partners aspire to make the coin available for the public by mid-2020 if regulatory roadblocks don’t hinder or postpone its release.
The new cryptocurrency will be overseen by the Libra Association co-founded by Facebook. The association is based in Switzerland and is made up of 28 members. According to the association, Libra will empower billions of people that don’t own bank accounts.
How Would Libra Work?
As mentioned in the whitepaper, Libra will run on a decentralized blockchain where all the transactions would be processed and verified by a cloud of self-regulating computers without any central authority. It will make the structure secure and prevent hackers from penetrating the network.
The computers in the cloud would be called “nodes” and would only function via the servers of the Libra Association’s members such as Facebook, Uber, PayPal, etc.
How Can Facebook Benefit From Libra?
Mark Zuckerberg once said that sending money online should be as easy as sending a photo. Considering that, Libra has been designed to make every online transaction easier as well as cheaper in order to attract new users of the coin to the social media site.
Facebook has also planned to introduce a wallet called Calibra which would be set up as a subsidiary of the social network and would accept payments from customers. Their purpose behind introducing this wallet is to maintain a leadership role in the Libra association.