A week ago, on 18 June 2019, the biggest social network in the world Facebook announced the creation of its own digital money — Libra. This cryptocurrency will work on blockchain, the company developed the Swiss Foundation — that is, not Facebook itself, and a third person, and supported by hundreds of companies, including FB. Given the huge audience Facebook and other services like Whatsapp and Instagram (Yes, Instagram belongs to Facebook), there was an opinion that Libra will be able to replace the usual dollar.
Will there be enough strength? Let’s face it.
Cryptocurrency Libra from Facebook: what is it
If you know what bitcoin (and if you don’t know rather to read), you should know that the world is moving to digital money. Yes, a high probability that twenty years later the banks will not need and money can be stored in digital form on my phone or on a flash drive, like in your wallet. Hence the growing popularity of bitcoin — he has already “struck” $ 11 000 in value and stay, apparently, is not going to. Growing by leaps and bounds, fueling a sense of missed opportunities. All want bitcoin.
And now about Libra. “Tuckerbox” as he was immediately dubbed ardent fans of Mark Zuckerberg — Creator of Facebook in the long run wants to take from the world the dollars and turn them into digital currency. For cryptocurrency will stand for the real currency: dollar (USD), Euro (EUR), Japanese yen (JPY) and pound sterling (GBP), which will be stored in a special Reserve Fund Libra. In the next 18 months, “Libra” will be embedded in the ecosystem of Facebook and get your own wallet — Calibra. At the moment, the total audience of Facebook, Instagram and Whatsapp is 2.4 billion people. Using Libra you can submit or request a currency pegged to the dollar, to anyone.
Obviously, even in the medium term, this cryptocurrency can change the entire cryptocurrency market. If you fly, of course. And if you let her. At the moment, the support of her small — more on that below, so if Libra and gain value only due to the massive audience.
What the blockchain is Libra
Comparing Libra and Bitcoin, let’s see how the “digital gold”. The basis of bitcoin is the blockchain, or the distributed registry on the basis of consensus with cryptographic encryption. How it works — a topic for another article. The main thing you need to understand that bitcoin works. To make it work and to make it difficult to crack, hundreds of thousands of machines (miners) around the world peremezhaya huge number many times per second, selecting a particular combination. Once the combination (hash) is signed by the unit, which collected all of the pending transactions. The complexity of calculating the hash is automatically adjusted so that the block was signed on average every 10 minutes. If someone will tell you that bitcoin can be hacked, don’t believe. It is possible, but only in theory.
Another thing is Libra. To crack the cryptocurrency is also impossible, but it is based on a different mechanism of consensus — PoS with a system of two tokens. Read about the problem of Byzantine generalsis to understand how this algorithm consensus. Of maintaining the security of Libra will not have to waste a lot of electricity, and the transaction will be instant and cheap, if they do the fee.
More importantly, the Libra network will be used not only to transmit values — send money — it will be open for the creation of digital apps, websites, e-Commerce. Opens brave new world for the 2.4 billion people: a new, emerging market of cryptocurrency and all that they are built. Opens a portal to the world of bitcoin. In part, therefore, I believe that Libra will push the bitcoin exchange rate up and just gets to know about it more people like you.
In the long run may change the entire industry exchange of money. In fact, Facebook will proclaim himself as the new Central Bank, which regulates the emissions (i.e. printing new money) and the turnover of funds. I think the US Central Bank will like it? No, of course. Stick in the wheel will start to put already now. Rating Agency S&P published a reportwhich says that Facebook creates another payment system, not the new dollar, that is, they are not yet afraid. But we all know the ambition of Mark Zuckerberg — read, for example, how he wants to get to you.
How much will it cost Libra and where to buy?
The question that troubles many is how much it will cost Libra. After all, if this cryptocurrency creates a giant like Facebook, there will be many people willing to buy it, which in turn will push the cost up. But this likely will not happen. Course Libra will indeed be free — but this cryptocurrency thinks as stablein, or a digital “analog” of a dollar, equal to him. But it will be very stable because it is tied to real assets and is carefully controlled.
Be a friend, buy a Libra
Libra: good or bad?
I think it’s good. But many will disagree. From the pros: is the future of cryptocurrency is not going anywhere just because it’s convenient. Facebook will open the way for a huge audience in the new cryptocurrency world. Of the minuses: it’s Facebook. He lost the trust of its users, and the trust of fans of the cryptocurrency, he is unlikely to deserve, because it’s very centralized system, which is still for mark Zuckerberg will have the last word.
Whether a Libra to replace the us dollar? What do you think? Offer to discuss in our chat in Telegram.