Cryptocurrency Libra: Features and Problems of the Token from Facebook

The official Libra cryptocurrency of the Facebook network, in addition to obvious advantages, has many global problems. Learn about token launch plans and its impact on bitcoin and cryptocurrencies in general.

In 2004, a not-so-easy guy from Harvard founded the company and the social network Facebook, which quickly gained popularity and has not lost ground to this day. 2 billion people all over the world use the site every month, half of them use the Facebook mobile application, although in India this social network is inferior Instagram.

You must admit that with so many active users it would be foolish not to try to introduce your own payment system, because now the idea of ​​transactions through a messenger is at the peak of popularity, an example is WeChat through which you can buy anything in China.

In the spring of 2019, Mark Zuckerberg announced the launch of the author’s cryptocurrency, called Libra, which is translated into Indian as the zodiac sign of Libra, which immediately hints to users about stability as the main goal of creating a new crypto. Previously, the project of this coin was called Facebook Coin, but, apparently, the creators wanted to move a little away from the name of their own social network. It is known that Zuckerberg brought in the work on this project, the former president of PayPal, David Marcus, and another 50 top developers.

Zuckerberg’s goal is to transfer funds through WhatsApp and Facebook Messenger messengers in all countries where it is possible to use Facebook. At the same time, the Facebook Coin coin itself will not depend on market fluctuations, due to the fact that its company has the necessary financial resources to ensure the value of their token with the currency stored on Facebook accounts. Stability will also be supported by the euro and the dollar. Ideally, the new currency would be of interest not to speculators, but to honest users interested in stability.

Transactions will occur using the private blockchain technology, but, unlike other unstable tokens, Libra will be supported by the traditional currencies mentioned above. The blockchain itself is written in the new programming language Move, which will allow smart contracts to become as simple as possible, and the priority of the system will be the security of all operations. By the way, the speed of operations will be 1000 transactions per second. Dogecoin price The developers also introduced a new consensus protocol, due to which the network has no chance to fall, even if a third of the validators are compromised.

It is important to remember that one of the main advantages of the Facebook blockchain is the almost instant involvement of millions of users using WhatsApp, Instagram and Facebook Messenger. In addition, Facebook claims that companies such as Booking, Uber, PayPal, Visa and others have already joined them, although this information has not yet been confirmed by any of these companies.

Some people know that Messenger already has a built-in payment system, but it is not so effective due to problems with banking systems: transactions include intermediaries and take up to 5 days in time. Facebook’s cryptocurrency will eliminate the need for banks and make the process instant. This is a chance for central banks to watch the launch of their crypto before they launch their blockchain options.

The plans of Zuckerberg and his team have a hope for combining instant messengers in one application, so that it is easier for users to communicate with each other, as well as provide a reliable encryption protocol. The company believes that this way cryptocurrency will become more accessible to all users, and there are quite a lot of them. Libra will be a new era in the development of cryptocurrency and its massive adoption, thanks to ease of use and speed.

So, what are the advantages of cryptocurrency libra?

As we said above, Libra will become an international currency, this will avoid problems with cross-border payments. Using libra, you can pay for various goods, services and even pay bills in restaurants and cafes without commissions. Because The libra will be supported by real currency, you can always convert it into dollars, euros or yen. You can do it, because behind this crypt is a powerful company with huge assets.

According to experts, the Facebook Libra coin will become the so-called stablecoin, which means that, unlike many other currencies, it will differ in stable cost and insurance from high volatility (price fluctuations). And thanks to the name of the company partners and companies interested in cooperation, now there are simply countless.

How to mine a libra coin?

Unfortunately, Libra will not be able to mine. Only members of the Libra Association will be able to process transactions using an exclusive blockchain entrusted only to them. However, over the course of 5 years, Libra plans to become an inclusive blockchain (accessible to everyone), although according to the development team itself they do not yet have the solution to provide the scalability, stability and security needed for billions of users and transactions around the globe through an inclusive blockchain. a platform.

Where do they buy Libra?

Not very good news awaits us here: not only haven’t anyone put Libra into circulation yet and its cost is still not known. Facebook ran into some problems regarding the launch of the blockchain. It just so happened that all central banks do not really want Libra to enter the market. It is not advantageous for banking systems to have a crypto backed by real currencies in competitors that does not need intermediaries to participate in any transactions.

On this occasion, the world-famous Digitalcoinprice exchange said that criticism of the Libra coin is strange and unfounded, because it is one of the few projects that can really change the world for the better. The forecast for launching the coin is stretched almost to the end of 2020, and Zuckerberg himself refuses to give the exact time, since under the pressure of regulatory authorities the launch may not occur at all.

Libra and their Calibra wallet will enable millions of users to pay for services and goods without becoming a client of a real bank (many residents of developing countries simply cannot become customers of banks because of their inaccessibility, for example, residents of Nigeria, China, Mexico and other developing countries) . Although this noble intention is not indicated in the white paper of the project, and if we look at the statistics, it will become clear that most of these people do not need bank accounts.

Therefore, some countries will restrict or completely prohibit the use of Libra in their states. The United States, and in particular Donald Trump himself, is far from enthusiastic about the introduction of the Libra cryptocurrency. The Financial Affairs Committee believes that Zuckerberg is obliged to suspend the development of the blockchain until the government establishes the economic risks associated with the launch of the platform.

When is the launch?

The following question arises: will people really use Libra when it is still launched? Experts cannot yet give an exact answer, because a lot depends on whether their blockchain will be open to third-party developers, whether they will be able to give open access to the code.

On the one hand, Libra can indeed become the dominant cryptocurrency, and on the other hand, there is a danger that user information will not be in the most reliable hands. Some experts advise to be careful, as people still remember that it was Facebook that was involved in scandals related to the disclosure of user data.

People fear that Zuckerberg’s company will sell user transaction data to third parties. It is believed that Facebook only wants to capitalize on the user capital that it has. There is even a theory that without a highly effective system for regulating the global cryptocurrency, there is a risk that these funds will be used to finance terrorism.

But what about bitcoin?

The anticipation of the launch of Libra revived the cryptocurrency market: it is expected that there will be more investors and users, and this will affect the influx of investments, including in bitcoin. But at a Congressional hearing on Libra, David Marcus was not convincing, and when asked whether users can be sure of the privacy of their personal data, he said that the goal of their cryptocompany would be to restore user confidence.

The Senate found the Libra concept unfinished in terms of privacy. Xrp price prediction Bitcoin is still slowly, but surely, growing, and cryptanalysts believe that regulation by the states will benefit the industry and become the prerequisite for the emergence of new altcoins created with the filing of the states themselves.

Conclusion

What do we see in the end? A great idea stumbling over the reputation of the creators, as well as numerous obstacles in the form of regulatory economic bodies. Hearings and a general hype around Libra revive investor interest in the cryptocurrency world, which has a beneficial effect on the market, as provides an influx of new funds into the industry.

The planned launch date for the blockchain is at the beginning of 2020, but so far there is no Libra coin, no platform. Only the released experimental code (so incomplete that it can hardly be called a working blockchain) and restless economists around the world, beating the bell and panically writing new rules for regulating the cryptocurrency market.

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