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In recent times, Facebook has been in the news for different reasons, particularly about its launching its own crypto ‘Libra’. On Tuesday 18 June 2019, the social media-networking giant unveiled the Libra cryptocurrency, as well as the whitepaper for the cryptocurrency.
Facebook Libra whitepaper
The Libra whitepaper is a 29-page document that outlines the technicalities of the Libra network, as well as the problems it intends to solve. This document took more than a year to prepare, and that is indicative of the fact that Facebook did its homework, and wants to be recognized as being crypto-credible.
According to Facebook’s Libra whitepaper, the Libra blockchain was created as a programmable database that is decentralized and designed to provide support to a cryptocurrency with low volatility that will be able to function efficiently and effectively as a medium of exchange for the billions of people that are located in different parts of the world.
Libra Blockchain Alignment
In order to achieve that decentralization, an independent Libra Association will handle the Libra blockchain protocol. The members of the association will have separate Libra tokens in their possession, which will be used to perform their on-chain voting duties that will be used to govern decisions on the Libra blockchain network.
The technical lead of Facebook’s blockchain department said the Libra is designed such that there will be a transition of the founding members’ node membership to Libra users who have a stake in the whole Libra ecosystem.
It is safe to say that Libra was created to be a high processing global blockchain, a system that is created with the design of offering programmable funds, but also limiting the abilities of the users of the platform for a while, to allow the ecosystem evolve from just being a prototype to one that is robust.
In contrast with some other blockchains, there are indications that Libra is geared directly at facilitating seamless payments, as well as providing other use cases for the consumers. However, from the whitepaper, Facebook talks about the technicalities of a distributed consensus, and how the company appreciates what has been done and achieved so far.
The social media giant really took its time on this one, as the company has also come up with a new language that will be used for writing commands on the Libra blockchain. This new language is called ‘Move’, and the software is open for the public to inspect.
In doing their homework, it looks like Facebook took the strengths from different blockchains to make up its system. For instance:
Bitcoin
No link between accounts to the real user in the real world
Ethereum
Programmable currency and Proof-of-Stake (PoS)
Hyperledger
The consensus structure is permissioned
Tezos
On-chain governance
Binance
So much token burning
Coda
No need to have the complete transaction history
It has only just been unveiled, hence, over time the undecided matters like data storage and others will get solutions. The world is watching and expectant, and in the world of crypto currency, this is a significant move with lots of prospects.
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