|What is the Libra?|
What is The Libra? Here's what you need to know about the new cryptocurrency on Facebook, In a white paper from Facebook, the company has identified the objectives and specifications of a new cryptocurrency called Libra.
The cryptocurrency, developed over a year ago, is designed to allow online payments to be processed globally and to include 1.7 billion people around the world who do not have a bank account or credit line.
While the full cryptocurrency will not be released until 2020, here's what you need to know before you adopt the platform.
|What is the Libra?|
What is Libra?
Rumors about an cryptocurrency developed and/or managed by Facebook have been published for at least a year, and now it is finally open to people to see it in the form of a Libra.
Libra is an cryptocurrency operated by the Libra Association which allows users to exchange paper currency for Libra(ie, buy and sell Libra) for use in online transactions.
In order to pay wider adoption, Libra does not require users to have a bank account or credit limit such as a credit card in order to own any cryptocurrency from Libra - they simply transfer money to or outside Libra for use.
Al Mezan, the guiding hand of the emerging encryption currency, is composed of partner companies. The main participants are payment processors such as Visa, Mastercard, and PayPal. Together, these partners ensure that payment processing is fast, accurate and reliable so that transactions are as free of friction as possible.
How does the Libra work?
There are some components that make the Libra what it is, but the main elements are the role of Al-Mizan and Al-Mizan.
The Libra Association is responsible for running the authentication nodes, and the clusters of computing servers that process the transactions, as such, are the only ones that are actually allowed to add Libra or remove them from trading.
At launch, the Association will operate 100 of these contracts, but the number will increase as required by the measurement, and with the accession of more partners.
This setting distinguishes the Libra from most other encrypted currencies. While the most common encrypted currencies such as Bitcoin are decentralized and the task of the individual in maintaining the global ledger through "mining" currencies (ie performing computations to "prove work" verifiable encryption), Libra is centralized and is fully calculated by checkpoints Libra.
To maintain accuracy and prevent double-spending attacks, the Libra Libra uses a system known as Byzantine fault tolerance, where the contract can find a way to reach consensus (in this case, about the state of the rolling Libra) even when the contract can not all agree on Another contract status.
Specifically, it uses a variant of the HotStuff Byzantine error tolerance protocol called LibraBFT, which is supposed to accommodate unknown failures or situations by up to one-third of all authentication nodes.
The other main piece to the Libra is its reserve. Many decentralized coded currencies, particularly the Betquin coin, suffer from a choppy assessment.
While this may be profitable for high-risk investment purposes, Facebook has sought to create a more stable cryptocurrency to encourage it as a means to facilitate normal consumer transactions over the Internet.
Libra does this by supporting all its digital currencies issued through a reserve. Founding members must accumulate funds in reserves, with the potential return on their investment through dividends from the low-yielding investment of reserve assets.
You can also contribute to the reserve when they exchange paper currency from the Libra. By linking the Libra to the government currency, the idea is that the value will remain relatively stable.
What does this have to do with FACEBOOK?
While Libra is a Facebook brainchild, Facebook has developed a large part of the code base for Libra, but the company insists that it will work as a regular member of Libra without giving any special authority or privilege.
Basically, Facebook promises to get only one vote, like every other member. Whether Facebook will have an equal share in the authentication contract, however, is unclear.
On the face of it, since Facebook probably has the greatest computing power for any partner, it will host the most valid contract.
What is also unclear is how Facebook plans to use the Libra across its various applications and services. It is not difficult to imagine integration in Facebook Messenger to transfer peer to peer or to buy products on the Facebook Marketplace, but nothing has been confirmed yet.
Can we trust them?
Facebook has been plagued by scandals and data breaches over the past two years, making some people really question about the privacy of these financial services. However, the balance has some important security features to protect your money.
The platform is programmed in Rust, which is generally good in-memory processing, and the Smart Contract element is written in Libra's Move language, which requires some effort to restrict how data is transferred.
Although tolerance for Byzantine errors is the most difficult category of systemic failures to solve in computing, HotStuff has great strengths in its specification.
With regard to privacy, it is not clear how the platform will deal with this. Libra insists that "the association itself does not participate in processing transactions and does not store any personal data for Libra users," but they are responsible for managing the authentication contract, which will be a party to your data.
They also insist that they will help enforce the law, and this will not be possible unless they retain a certain amount of user data. Even if the node operators do not share data (beyond what is necessary to complete user transactions, obviously), there may be problems.
If this platform is truly universal, as the Libra intends, even the traffic segment to be handled from a single node can be profitable for data monetization, especially when the network starts at just 100 nodes.
Libra also states that "transactions do not contain links to the real user identity." It also seems hard to believe. The full basis of how the cryptocurrency works is that any observer can verify where the money has gone, a function maintained by the balance despite its central structure. Even if this claim is correct, user behavior patterns can easily determine if there are no explicit identities.
"Calibra will not share account information or financial statements with Facebook or any third party without the client's consent, which means that Calibra account information and financial data will not be used to improve targeting of ads on the Facebook family of products.
"Agree" technically when you agree to mysterious user agreements that come with any application or platform, so this is not really a real Facebook security. Second, although the balance may exclude advertising sales, data can be sold to financial institutions for use in credit scoring, for example.
Considering Facebook's record less than sterling in user privacy, you are right to suspect the privacy claims balance. However, an open-source code rule can help alleviate concerns, assuming that they are properly audited by neutral and accessible third-party monitors.