The world’s largest social network, Facebook, has open-sourced its “early-stage” code for the Libra Blockchain today.
This project, Libra, which is expected to reinvent money, has the backing of some of the biggest finance, retail, tech and even crypto companies of the world, and is expected to change how money is perceived, by transforming the global economy.
Alongside the announcement of this new development comes some confusion which needs clarification.
Questions about Libra and the CaLIBRA, the launch date, what is expected and other interesting information about a project which has been defined, as one of the most ambitious cryptocurrency projects ever conceived.
While some areas will only be clear come first half of 2020, when Facebook plans to launch Libra, below are some things anyone can know now and can use to show a little knowledge on what’s going on.
- Libra, the project, is several things in one. There is the Libra Association which is run by Founding members.
It governs Libra. Then, there is the Libra Blockchain on which the Libra cryptocurrency is supported. Like Ethereum, this Blockchain allows people to build smart contracts on them, but there is predicted to be a bias towards financial applications.
Finally, there is the Libra coin which is the cryptocurrency itself. This coin is expected to be a stablecoin which means that the volatile fluctuations which make many other cryptocurrencies risky investments are not expected with it, as it is backed by actual fiat money.
- The cryptocurrency wallet which allows users to send and receive Libra coins is Calibra. This wallet will be maintained by Facebook and will also be integrated into WhatsApp and Messenger.
- The list of Libra Association Founding members which includes Mastercard, PayPal, PayU, Stripe, Visa, Booking Holdings, eBay, Facebook, Farfetch, Lyft, Mercado Pago, Spotify, Uber, Iliad, Vodafone, Anchorage, Bison Trails, Coinbase, Xapo, Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures, Creative Destruction Lab, Kiva, Mercy Corps and Women’s World Banking, shows that Libra is going global, and this global usage will further be effected by its integration into most used apps.
Despite the above clarifications, many other questions swirl around, like its energy usage, the programming language it is written in and the issue of security. There are also questions on who will be at the helm of affairs and who would have permission to run nodes on the Libra Blockchain.
According to the deep-dive article by Mashable, which answers many questions, the project would not use massive amounts of energy like other Blockchain projects.
The project will also require that the programmers adapt to it as it is written in a new language called Move. This is said to promote security.
Finally, at launch, the Libra will be a permissioned blockchain. This means that at the initial stage, Libra will only allow a selected few to run nodes. It is expected that it will become permissionless within five years of its launch.
The Libra project is expected to have a global effect which would affect the developing nations more, according to a previous report.
Libra and Calibra will definitely have an impact of the global view of financial infrastructure and cryptocurrency, but the extent of such expected impact can only be seen at its launch and running. Like the VP, Product of Calibra, Kevin Weil, said, Facebook still has a ton of work to do before Calibra goes public.