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9 Things You Need to Know Facebook Libra Coin

9 Things You Need to Know About Facebook Libra Coin

Know the nitty-gritty of Facebook Libra coin!

We recently published a 1600 word guide of Facebook Libra on our blog. But, in case if you don’t want to skim through each and every word here are the top 9 things you need to know about facebook libra coin

1) Facebook and Cryptocurrency

The rumors of facebook developing a cryptocurrency started making round after Facebook announced a blockchain initiative in 2017 led by David Marcus (head of the Facebook messenger).

Finally, in June 2019 Facebook announced its first cryptocurrency known as ‘Libra Coin’. The official launch of Libra coin is set in 2020.

2) Targeting Unbanked and Global Remittance

In its whitepaper, the two major problems which Libra Coin will help in tackling are providing financial inclusion to the unbanked as well as lower the remittance fees for cross border transfers.

3) 28 Major Hotshot Organizations are leading Libra Coin

Even though everyone keeps referring it to as Facebook Coin, it is not just Zuckerberg’s game. Facebook Libra Association, at present, consists of 28 major hotshot organizations. Some of these include Uber, Mastercard, Paypal, Vodafone, Spotify, etc.

Facebook intends to convert the present 28 member association to 100 members before its official launch in 2020

4) It will be independent of Facebook

Facebook has gone through some major scandals in the past few years. Given Facebook’s reputation, entrusting it to record the financial transactions of its users would be a huge NO-NO.

Well. Libra is not directly associated with facebook. It is going to act as a separate entity. Facebook is a member of Libra Association but will have equal power and equal access as the other members of Libra Association

5) Libra Cryptocurrency price

Since Libra is created for mass user adoption, it is largely meant to act as a stable coin. The price of Libra Coin hasn’t been decided so far. But, as per its whitepaper, the value of the coin is tied to a basket of currencies (like dollars, euro, and pounds) and short-term government securities. The value of this basket determines the price of Libra.

6) The Libra Blockchain

All the Libra transactions will be stored and maintained on the blockchain platform. The blockchain uses the language ‘Move’. Hence, anyone can build decentralized applications or write smart contracts on Libra Blockchain using the coding language Move.

The transactions once written on the blockchain cannot be reversed or modified. They are permanently embedded on the public ledger.

7) Libra is a ‘Permissioned Blockchain’

The Libra Coin is basically a cryptocurrency built on Blockchain technology. But, it is not as decentralized as bitcoin. Each transaction made on libra is going to be vetted by the members of its association. Hence, it is a ‘permissioned blockchain’ or rather a centralized coin run by the libra association and not governmental authorities.

8) The Cryptocurrency can handle 1000 transactions per second

According to its whitepaper, the cryptocurrency is permissioned blockchain as it can handle more transactions per second. The Libra Blockchain will handle up to 1000 transactions per second. currently, bitcoin handles 7 transactions per second.

9) Facebook Calibra Wallet

Alongside the launch of Libra, Facebook will simultaneously launch  ‘Calibra’- a digital wallet which stores Libra cryptocurrency. It intends to make buying things with Libra as easy as sending messages on facebook messenger.

The executives of Facebook have stated that Calibra will not share account holder’s purchase information without authentication (but again it is Facebook, right!). A search function can enable the account holders transaction history with Facebook account.

So, what do you guys think about Libra? Mention in the comments below. We would love to know!