What is Facebook Libra Coin? What you Need to know?
Facebook finally revealed the details of his Libra Cryptocurrency (known as Facebook libra currency) , which allows you to buy things or send money to people at no charge. You will buy or redeem your scales online or at a local change bureau like a grocery store, and publish them with a compatible third-party wallet application or Facebook libra’s own wallet, which will include WhatsApp, Messenger and the application itself. Today, Facebook has released a white paper describing the scale and curvature of the block chain system before it will be released in the first half of 2020.
Facebook will not fully control the scale but will only receive one vote in its management. Other founding members of the Libra Association, including Visa, Uber and Andreessen Horowitz, each invested at least $ 10 million in project operations. The association will promote the open platform Libra Block chain and the developer platform with the Move programming language itself and will register companies that accept Libra as a means of payment and even offer discounts or gifts to customers.
Facebook found a subsidiary called Calibra, which handles crypto transactions and protects consumer privacy by never mixing your Libra payments with your Facebook data, so they cannot be used to target advertisements. Your true identity is not tied to your transaction that can be seen publicly. However, Facebook / Calibra and other founding members of the Libra Association will be interested in the money saved by consumers to keep the value of Libra stable.
The smart pursuit of global digital currency by Facebook that promotes non-bank financial involvement is indeed more secretive and decentralized than many people think. Instead of trying to dominate Libra’s future or make lots of money right away, Facebook plays a long game by attracting online payments to its domain. David Marcus, Vice President of Facebook Blockchain, explained the company’s motives and relationships with its main source of income during a briefing at the historic San Francisco Mint Building. “As more marketing happens, more and more small businesses will sell more on and off the platform, and they want to buy more ads on the platform, so this is good for our advertising business.”
In cryptocurrency, Facebook sees both threats and opportunities. They are committed to disrupting the purchase and sale of goods by eliminating the costs of ordinary credit card transactions. This is adjacent to the Facebook advertising business, which influences buying and selling. When a competitor like Google or novice makes a popular coin and can monitor transactions, it learns what people buy and can handle billions spent on Facebook marketing. At present, 1.7 billion people who do not have a bank account can choose anyone who offers alternative financial services to them, as well as their online identity providers. This is another thing Facebook wants.
However, existing cryptocurrency such as Bitcoin and Ethereum are not properly scaled to become a medium of exchange. Their unencrypted prices experience large and unexpected fluctuations that make it difficult for traders to accept payments. And cryptocurrency loses a lot of their potential beyond speculation, unless there are many places to take over the dollar, and trying to buy and spend it is easy enough for the general public. But because Facebook appeals to 7 million advertisers and 90 million small businesses, the company is well prepared for the problem.
Now Facebook wants to make Libra for further development of PayPal. We hope Libra will be easier to make, more ubiquitous, more efficient, at less cost, more accessible to non-bankers, more flexible for developers, and more sustainable through decentralization.
“Success means someone who works abroad can quickly and easily send money to their families at home, and a student can pay rent as easily as they can buy coffee,” Facebook wrote. This will be a big improvement today if you can no longer rely on unsecured checks, while money transfer service providers charge an average of 7% to send money abroad and $ 50 billion in annual consumer income. This scale can also feed small micro-transactions that are worth a few cents, which is not possible with the attached credit card fees, or replace your prepaid transit card Or it can be ignored by consumers around the world who find it too difficult, too little or too unusual to pay, and whose use is limited to lure them into the current financial landscape. Facebook has gained a reputation for products that are overly developed and underused. He will need whatever help he can get if he wants to replace what is already in our pockets.
Facebook has just rediscovered digital money. Facebook cryptocurrency, which will be launched early next year, looks more like PayPal than Bitcoin – it’s designed to be easy to use for anyone. But it’s still difficult to understand, so I will understand it nice and easy.
Libra is like money that lives on your mobile. How do you buy cryptocurrency on Facebook? Starting in 2020, you can buy Libra on your mobile through the Libra Wallet Wallet application or at your local grocery and convenience store. They make money in local currency with dollars and get a number of coin scales that are almost the same as those represented by these three wavy lines emojis, not the $ symbol. But first you have to verify your identity with a photo.
You can then spend your money on online purchases, or maybe pay for things like Ubers or your Spotify subscription, because these companies work with Facebook to make Libra popular. Because it’s almost free to digitally move scales from one account to another, you don’t have to pay high fees for credit card processing, which can reach 4% of your total. The application and Libra wallet shop offers bonus discounts or free coins for registration and payment with Libra.
You can also send money from friends and ask them like you do with Venmo or PayPal. It’s easy to send Libra because this is a message. In fact, Facebook is building its own Libra portfolio called Calibra, which will be included in WhatsApp, Facebook Messenger and stand-alone applications.
You do not need to provide the name and real identity of your payment, but the payment is public. Facebook knows it’s a bit scary and you might not want to spy on what you buy. That’s why Facebook has established a new company called Calibra that separates all of your financial information from your Facebook profile. This means that your transaction data cannot be used to refer you to advertisements, order back news feeds, or sell your information to merchants.
In the end, Facebook hopes you can use Libra to pay your bills, scan your wallet’s QR code to buy coffee, or tap your cell phone to buy your public transportation ticket. You can always make money from Libra and deposit your local currency into your bank account or send it to your local grocery store.
But how does Libra Cryptocurrency work technically … without some fashionable blockchain? Scales are coded so that the price is stable, safe and not only controlled by Facebook.
In its place, Libra is run by the 28-member Libra Association, which is expected to grow to 100 members when it is launched in the first half of 2020. Financial companies such as Visa and Mastercard, traders and applications such as eBay and Lyft, venture capitalist funds such as Andreessen Horowitz and Union Square Ventures as well as non-profit organizations such as Kiva are members. Everyone pays at least $ 10 million to get a vote in the Libra council, which controls what happens to the currency. You are responsible for checking to ensure that the scale of the transaction is genuine and forms a reserve balance.
Every time you make money in dollars, this money will be transferred to a large bank account called Libra Reserve, which will make and send a balance to you. The Libra reserve consists of the most stable international currency collections, such as the US dollar, British pound, euro and Japanese yen. The idea is that the balance value will remain stable even if one of these currencies goes up or down. In this way, the shops accept the scales as a means of payment without worrying about the value of the coins going down tomorrow. Large price changes are the reason why older cryptocurrency such as Bitcoin or Ethereal has not become popular as a payment method. Scales can also handle 1000 transactions per second, while Bitcoin can only handle 7 transactions.
How do Facebook and other Libra members get money? There is no interest for all assets held in Libra. After the Scales Association pays for its business and technology investment, members will receive a reduction in the remaining interest in proportion to the amount they invest to join. If Libra becomes popular, many people pay money and reserves increase, interest rates can lead to significant income for Facebook.
But there is also a good second way for Facebook to become rich with Libra. If currencies make it easy for small businesses to accept payments online, they will sell more. You then have to spend extra money on Facebook ads, which makes it quick to buy items with Libra. Ninety million small businesses already have Facebook pages, but Facebook only has 7 million advertisers. As more local marketers turn to ad buyers, Facebook’s revenue can grow quickly.
Libra’s big risk is that anyone will be able to develop applications for it. This can cause a different situation at Cambridge Analytica. But instead of making application that cleverly steals your personal information, it can steal your digital currency. Facebook and the Libra Association said they would not review Libra developers, leaving the door wide open for abuse. And when people are cheated, they blame Facebook.
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Nanthakumar R, a zeal freelancer who is passionate about Mechanical Design, Drafting, Blogging, Belles lettres and epistle hunting.
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