After a long wait, Facebook has finally released the whitepaper for its Libra project shedding some light on their block production and validation of transactions. Facebook has persuaded some of the largest companies, including PayPal and Uber, to back its new cryptocurrency project.
The Scale of Facebook’s cryptocurrency
With the release of the white paper of the Libra project, Facebook has been actively targeting high profile companies and brands to support it in its new cryptocurrency project. It has successfully acquired the trust and backing of large names like Visa, Mastercard, Paypal, Uber, Stripe, Booking.com and even Mercado Libre in order to join the consortium to govern and fund the creation of this new Facebook cryptocurrency.
This stablecoin, also known as Libra, is expected to fully launch next year and it is expected to be able to avoid the wild value swings of other crypto coin behemoths like Bitcoin. The Wall Street Journal has reported that was seeking to raise a staggering $1 billion from 100 node holders for the crypto payment network. In the crypto world, 100 nodes seem like a very small number in order to achieve a stable and secure decentralization and it raises some suspicion among the community.
What is Libra Project?
Libra is a cryptocurrency that will be minted on the Libra Network which was created by a Swiss foundation and a consortium that is led by none other than Facebook. The blockchain will have a Proof Of Stake consensus mechanism with a two token system. There will be a governance token called Libra Investment Token (LIT), which will be the main way to allow participation in the governance of the network.
Libra and Facebook aim to achieve not only decentralization with increased security, but also better mobile development and integration with the help of the blockchain technology, better website authentication which will be mostly a quality of life change and improving digital payments and potentially turn Facebook into a key player in e-commerce while also reducing costs for all parties involved.
Conclusion
To sum up, a lot of people saw this coming. The tendency of the blockchain technology to spread and improve all aspects of digital business and platforms continues and now Facebook is preparing to take their place as a major player in the cryptosphere. What would this mean for the future of the social platform it is yet to be seen until the full release of Libra.