What İs Libra Coin?

What is Libra?

Social media giant Facebook, the world needs a reliable digital currency and infrastructure, stating that Libra is “the internet of money nit.

The Libra white paper, which points out that securing financial assets in a mobile wallet should be simple and intuitive, gives the good news that transferring money worldwide is as easy and cost-effective as sending a text message or sharing a photo. It is also stated that costs will be reduced and frictionless / invisible payments will be provided.

To create an inclusive financial system, Libra provides the following details:

Built on a secure, scalable and reliable Blockchain,

Supported by asset reserve,

It is managed by the independent Libra Association, which is responsible for developing the ecosystem.

The crypto currency Libra is built on the Libra Blockchain and is completely open source. This way, anyone can build something on Libra Blockchain.

The currency is called the Libra. Libra is a stablecoin fully backed by real asset reserves.

Libra’s Reserve and Source of the Reserve

The money in Libra Coin's reserve comes from two sources: investors in Investment Token and users of Libra. The Libra Association will make incentive payments to its founding members with Libra coin to encourage users, traders and developers. The funds of the crypto money that will be distributed as incentives will come to investors from a special place.

In order to create new Libra Coins on the user side, an equivalent Libra purchase must be made for the price and this price must be transferred to the reserve. Therefore, the reserve will grow as users demand for Libra increases. In short, to create more Libra coins, both the investor and the user need to purchase more Libra by price and increase the reserve.

Libra Coin is not supported by gold or a single fiat currency. Instead, currencies from stable and reputable central banks are supported by a combination of low volatility assets such as bank deposits and short-term government bonds.

What is the Libra Association?

The Libra Association is an independent, non-profit association based in Geneva, Switzerland. The aim of the association is to coordinate and provide a framework for the management of the network, to provide reserve and leadership in providing social impacts to support financial participation.

Founding Members of Libra Association

Libra Association members will be geographically distributed and will consist of various businesses, non-profit and multinational organizations and academic institutions. Sonuç Founding Members üzerine upon finalization and completion of the statutes of the Association are as follows:

Payments: Mastercard, PayPal, PayU (fintech arm of Naspers), Stripe, Visa

Technology and markets: Booking Holdings, eBay, Facebook / Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies Inc.

Telecommunications: Iliad and Vodafone Group

Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited

Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures

Nonprofit, Multinational Institutions and Academic Institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking

The number of members of the association is planned to be increased to 100 until the Libra launch, which is targeted in the first half of 2020.

Facebook, working with other members of the association to develop Libra, will lead the Libra Association. Facebook created Calibra, an affiliate company designed to distinguish between social and financial data and to build and operate services on its behalf to work in the Libra network.

Libra Blockchain

The aim of the Libra Blockchain is to provide a solid foundation for financial services, including a new global currency that can meet the daily financial needs of billions of people. Libra Blockchain was created based on the following three needs:

Scalability for billions of accounts requiring high throughput, low latency and an efficient, high-capacity storage system,

High-level security to ensure the security of funds and financial data,

Flexibility.

Libra Blockchain is designed from the ground up to address these requirements in a holistic way and build on the deductions from existing projects and research. Key features of Libra Blockchain:

Design and use the Move programming language,

Using a Byzantine Error Tolerant (BFT) consensus approach,

Adopting commonly adopted Blockchain data structures.

The Move programming language is a new programming language for the development and implementation of smart contracts on Libra Blockchain. Move has high security measures because of Libra's goal of serving billions of people daily.

Libra Blockchain adopted the BFT approach using the LibraBFT consensus protocol to facilitate agreement between all validating nodes related to the actions to be performed and the order in which they are performed. This approach will build trust in the network because BFT consensus protocols are designed to work correctly even if some validation nodes are compromised or fail. This class of consensus protocols also provides a higher throughput, lower latency and a more efficient approach to consensus than the proof of work used in some other Blockchains.

To safely store transactions, the data in the Libra Blockchain is protected by the Merkle Root, a data structure used by other Blockchains to detect any changes to existing data. Unlike previous Blockchains, which consider Blockchain as a collection of transaction blocks, Libra Blockchain uses a single data structure that records the transaction date and records events over time. This application simplifies the operation of applications that access Blockchain, allows them to read any data at any time and validate the integrity of that data using a unified framework.

Like the other Blockchains, every information in the Libra Blockchain is designed to be completely anonymous.



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