The digital currency Libra from Facebook is the company’s new project of the “Like” button. Although it is based on block chain technology and tries to take advantage of emerging cryptocurrency markets and technologies. Is it really a cryptocurrency? Here, we will talk about the basic facts which you need to know about Libra.
What is Libra from Facebook?
Este is a project developed and sponsored by Facebook with a group of large global companies. Libra is a form of money transfer that uses block chain technology, developed entirely by Facebook. The main objective of this new application is to offer a digital currency of low volatility and global reach. All this on a decentralized and programmable infrastructure designed to support a large number of transactions. This seeks to create an efficient means of exchange for billions of people worldwide.
This is possible thanks to Libra Core, a free software development accessible worldwide. With Libra Core, it is intended that third parties build a series of replicas called validators. On these validators depends the operation of Libra in every way. From the validation of transactions, identity management and authentication through a decentralized public key infrastructure. Together with Libra Core, Facebook has introduced a new interpreted programming language called Move and its Move-VM virtual machine.
So, is Libra software accepted globally?
At the moment, Libra is a launch in the testing phase, but the technological foundations of the digital currency are built. This means that the most difficult and complex part remains, test the network in real use cases and make sure everything works as it should. It will launch in 2020.
Technology used by the Libra Facebook project
Consensus Protocol (Libra-BFT)
One of the creations that make the operation and scalability of the digital currency Libra of Facebook possible is its consensus protocol. Under the name of Libra-BFT, this consensus protocol promises to be tolerant of Byzantine failures. In addition, Libra-BFT allows to process transactions efficiently and without having to resort to mining. That is, Libra-BFT does not use either POS, or POW or any other mining model that we are used to. Instead, transactions are handled by the so-called “validators” through two consensus protocols called Proof of Safety and Proof of Likeness.
Move and Move-VM, language and virtual machine of Libra
As expected, Facebook developers have borrowed some features from other cryptocurrencies. One of these features is the creation of a programming language for your blockchain. This language is called Move. This language was developed to provide a secure and programmable base for Libra Block chain. Move is an interpreted programming language, so it depends on a Virtual Machine (VM) for its execution. With both capabilities, Move is able to grant the ability to execute smart contracts. To do this, it uses Move-VM, the virtual machine programmed in the Rust language that must be able to interpret and execute the functions programmed in the Move language.
Is Facebook Pound really a cryptocurrency?
Despite all the advantages that Libra promises and the use of a part of blockchain technology for its operation, the reality is that Libra is not a cryptocurrency. For a cryptocurrency to be a cryptocurrency, it must really meet certain conditions, which are:
- They are not controlled / issued by any government or institution.
- They cannot be censored.
- They are highly private and even anonymous.
- Its value depends directly on the trust of its users.
- They are based on cryptography.
- They are open source.
Reserve and stability of Libra
Libra aims to be a stable currency, with low inflation, and broad global acceptance. That is why Facebook has created the Libra Reserve. The idea behind this is that the world accepts Libra as a stable means of payment. A means of payment backed by a serious entity and fiat money. But this does not mean that Libra is a stable coin. In fact, the value of the Pound against other currencies may fluctuate depending on the free market. At this point, the Libra Reserve can help keep these price fluctuations to a minimum by avoiding high impacts on the valuation of the currency.