Home » What is it, and what happened to the Facebook stablecoin?

What is it, and what happened to the Facebook stablecoin?

by archyw

Libra is a stablecoin launched by Facebook. This stable currency is backed by various bank deposits and short-term government securities.

In this post we will take care of breaking down the Libra project piece by piece so that you understand how it works.

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Libra in its beginning, how does it work?

This digital asset was born with the mission of becoming a global currency and a simple financial infrastructure that would empower billions of people.

To achieve this, Facebook developed a stable value global digital currency. That is, Libra is a Stablecoin that allows payments in Uber to street shops in some parts of the world. Or this is what Facebook wanted.

The cryptocurrency’s assets are held in the Libra reserve.

Libra Reserve

The pound reserve has sufficient funds to fully support each unit at all times.

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To fill this pool in its early days, Facebook collected funds from founding members who received a separate token. The investment token. The investment tokens provide a proportional payment of the dividends that the reserve earns with the interests of its assets.

However, in order to become a founding member, you must contribute a whopping $ 10 million and have a significant technology infrastructure.

Another method that Facebook used to fill the reservation was through purchases of the cryptocurrency by consumers.

Libra Blockchain

The blockchain of the Facebook project was the war horse behind the cryptocurrency and the services it offered.

The Blockchain uses a special special programming language, known as Move. This program is similar to Ethereum and uses Solidity.

With Move, it enables the creation and execution of smart contracts on the Blockchain. Libra’s virtual machine, MoveVM, makes those smart contracts easy.

Also like Ethereum, moving currency from one account to another requires paying a small fee.

Regarding the blocknet consensus, the Libra blockchain employs a Byzantine Fault Tolerance (BFT) approach, dubbed HotStuff. That is, there are no miners like in Bitcoin. The operation is carried out by a group of validators that operates and maintains the Blockchain. Initially, these validators consist of founding members of Libra.

Calibra

Facebook didn’t just work to move Libra forward. Along with the stablecoin, it also launched Calibra, a digital wallet for the Libra token on Facebook Messenger, WhatsApp and as a standalone application.

As announced by Facebook, Calibra will not share account information or financial data with Facebook or any third party without the consent of the customer.

We all know Facebook’s history, so we can only try to trust Calibra to be more transparent about protecting users’ privacy.

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The customer using Calibra requires financial verification and tracking (KYC) and Anti-money laundering (AML). This involves collecting user identity information and other personal data. However, this is required by any US-based business that is in the business of handling money.

Libra team and progress

Facebook is the driving force behind Libra. The social media giant has also managed to attract some important companies from the technology, financial and cryptocurrency sectors to the project.

Libra Association

The Libra association is the decentralized entity that gives life to the project. The association is based in Switzerland, and includes companies such as MAstercard, Paupal, Visa, Facebook, Uber, Spotify, Coinbase, Lyft, and Andreessen Horowitzm, among many others as founding members.

In addition to maintaining the blockchain network, the association is in charge of governance decision making for the ecosystem. All governance decisions must be voted on by all members of the association’s council. Each validator receives a representative seat on the Council. As in the BFT consensus, all major political and technical decisions require a two-thirds majority.

Each member of the association is limited to one vote or one percent of the total vote, whichever is greater.

Another component of the Association, the Social Impact Advisory Board (SIAB) recommends social impact investments and grants. The council of five to seven members also helps recruit validators for the association.

Road map

When they released the whitepaper in 2020, the cryptocurrency team launched the testnet of the network, and made the code open source. The company aims for a public launch in which it will include APIs, libraries and other tools so that developers can easily build on the Blockchain.

In addition, the Association expanded its membership to include around 100 organizations around the world from a wide variety of sectors.

Libra Coin cryptocurrencies

Libra Reality in 2021

Libra has been on the market for a year and it hasn’t been easy for Facebook’s cryptocurrency. Despite the fact that it was presented as a global currency backed by dozens of organizations and platforms, its ambition has been diluted.

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From the promise that the project made at the beginning, we have only managed to see obstacles and doubts. The social media giant Facebook has enough capacity to extend its own payment system, but the current plan seems to have lost its ambition.

Resume

That which began as a project that intended to shake the large blockchain projects. He has run out of ambition, waiting for the project to resurface.

From trading from scratch, we take care of training in financial and cryptocurrency markets, so that all those interested can handle information with solvency. In this way, you can avoid scams and deceptions that arise from the popularity of these markets.

If you are interested in knowing how From trading from scratch, we take care of training in financial and cryptocurrency markets, so that all those interested can handle information with solvency. In this way, you can avoid scams and deceptions that arise from the popularity of these markets.

If you are interested in knowing how investments work, we have basic training that will give you the necessary knowledge so that you can develop yourself in financial markets. If you prefer advanced information, we also have a course where, in addition, we help you learn everything you need to know about cryptocurrencies.

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