Libra Coin – A New Digital Currency Developed by FACEBOOK

The main motto of the Libra is to reach the unbanked and how Facebook’s Libra will be a game-changer. Before discussing this let us talk about the burning issue in the world right now.

According to a few reports, 2 billion people around the globe don’t even have a bank account. Diving deeper into few more stats:

• 20% of the unbanked adults receive their wages in the form of cash, and many people still use cash to pay school fees and to pay other bills.
• In SE Asia 438 million people don’t have bank accounts, which is nearly 73% of the entire population.
• 190 million people in India are unbanked, the second largest in the world next to China.

So, now we have a clear understanding of unbanked and let us discuss how Libra will help in empowering these people by offering them basic financial infrastructure.

Unlike other cryptocurrencies, Facebook has a huge user base and this is where Facebook’s Libra gets an extra advantage. Facebook has 2.38 billion active users making it easy to gain users for Libra.

What is Libra?

Libra is a simple global cryptocurrency developed on Blockchain technology with a vision to empower millions of people around the world by providing them a platform to experience the world of digital transactions. With Libra, transactions become quicker at minimal transaction fees. Libra is compatible with mobile, this makes Libra accessible to everyone and all you need is a mobile with data connectivity. One can transfer Libra from any part of the world to anywhere, no matter where you are from or what you do.

Some of the significant features of Libra are:

• 1) Libra is built on a scalable, secure and reliable blockchain.
• 2) Libra is a stable coin as it is backed by a reserve.
• 3) An independent non-profitable association regulates Libra. This association is known as the Libra Association.
• 4) Libra uses LibraBFT consensus mechanism.
• 5) Libra is developed using a new programming language called MOVE.

Libra Blockchain

The Libra Blockchain is not a regular traditional Blockchain. The facebook team has come up with an idea to code their chain from scratch so that it could meet the following requirements:

• It should must have the ability to scale the billions of accounts at a time. It requires high transaction output, an efficient and high capacity storage system.
• It must be secure to safeguard the funds and transaction data.
• It should be flexible so that it could assist the Libra ecosystem’s governance and also future discoveries in the financial field.

Libra Association

The Libra Association is the governing authority of the Libra Blockchain. It is a self-dependant non-profitable organization, the headquarters of this association is in Geneva, Switzerland. This association is built to look after the operations of the Libra Blockchain. It helps in coordinating the agreement between validator nodes and stakeholders, to develop and expand the network and also to control the reserve. This association is controlled by the Libra association council which includes one representative per one validator node. Decisions are made on the basis of the majority produced by the council.

MOVE- Libra’s programming language

Libra is built on a new programming language called Move. It executes the custom transactions and smart contracts. The main objective of Move is to provide high security to smart contracts.

Moving towards permissionless consensus

Permissionless blockchains are decentralized, initially, Libra will move on as a permissioned blockchain under the supervision of the Libra Association. But the main goal is to become permissionless chain ultimately. There are few hurdles to be overcome to be permissionless. At present, there are no proven methods which have the capability to manage the scale, stability, and security. The Libra association will be working on this along with the Libra community to check the alternate ways to execute the change from permissioned to permissionless network. This research will effectively take place within 5 years of the launch of Libra.

Security and privacy on the Libra Network

The Libra Blockchain is an allocated system that controls both ownership and transfer of Libra from one person to another. The Libra Blockchain prevents any type of attacks using LibraBFT, a variant of the HotStuff Byzantine Fault Tolerant consensus protocol. The Libra Protocol executes a cryptographically authenticated database. This database is controlled by the allocated network of validator nodes that follows the LibraBFT consensus protocol. Using standard and proven technology is a way to protect the software. The association has decided to execute the Libra core, the reference execution of the Libra protocol with the help of Rust because this memory safe language reduces common security vulnerabilities. To get detailed information on Libra, checkout the following infographic developed by our friend Karthik at MrBTC.org. Lets us know your thoughts on it.