Last Updated on
Rumors regarding the creation of Facebook’s own digital currency have been around for a long while, and now, they have finally been confirmed. While Facebook itself chose to remain quiet regarding its future coin for a very long time, the crypto community has piled up countless pieces of evidence that provide a clear, if unconfirmed, picture of what the coin is going to be like.
The so-called Libra cryptocurrency is expected to see launch early in 2020, and it will be available to billions of people around the world. It will also be a stablecoin, pegged to multiple fiat currencies. Some speculated that the coin would be used only within Facebook-owned messaging apps, such as WhatsApp.
Yesterday, Facebook finally confirmed its coin by launching its white paper for the Libra project. The project includes the Libra Blockchain, as well as the coin. The blockchain itself was described as a decentralized, programmable database that was designed to support a low-volatility cryptocurrency.
Further, the white paper talks about the new open-source blockchain protocol, named Move. The white paper describes Move as a new language — one that the public was invited to inspect and provide feedback for.
The white paper continues by saying that, to validate the Libra protocol’s design, the company has created an open source prototype implementation known as Libra Core. It will help advance the new ecosystem and achieve a global collaborative effort.
Libra as a combination of BTC and ETH
It would seem that Libra’s design took the best attributes of some of the top quality blockchain networks in the space. For example, the project has added Bitcoin’s secretive private/public key pair system, which allows users to remain anonymous. Of course, this also makes it difficult for regulators to combat money laundering, but the company seems to believe that privacy needs to be assured, regardless of such issues.
Facebook’s newly-released white paper confirms this, stating that the Libra protocol won’t link accounts to the users’ real-world identity. In fact, users will be allowed to create numerous accounts, neither of which will be linked to any other owned and controlled by the same user.
As mentioned, Libra also took elements from Ethereum network, such as the ways of user/software interaction. Like Ethereum, Libra has opted to use the PoS algorithm, while Bitcoin still remains on PoW to this day. But, the project did not stop there, and it also assimilated some features seen in other blockchains, such as the Hyperledger-like permission to governance method, which is known to be used by Tezos.
Even with all of this, Facebook appears to be more than aware that there is still a lot of work to be done, and that there is always room for improvement, according to the recent tweet by the company’s VP of Messaging Products, David Marcus.
12/ Our hope is to create more access to better, cheaper, and open financial services — no matter who you are, where you live, what you do, or how much you have.
— David Marcus (@davidmarcus) June 18, 2019
Marcus stated that the company wanted to share its work with the public early and that its product is still nowhere near being completed.