After a series of leaks and rumors, Facebook has finally announced the new cryptocurrency everyone was talking about and it’s called Libra and it is that and that will officially debut on the social platform by 2020
This cryptocurrency will be accompanied by a digital wallet called Calibra.
Today we are going to talk in details about how it works and what are the specific characteristics of this cryptocurrency from the social networking giant.
And also we try to answer some more legitimate questions about the libra and help you all who are disseminated to understand clearly and linearly how Libra can be used inside and outside the social network.
And finally, we will also look at the most asked question – how can Mark Zuckerberg’s Facebook gain profit from this?
What is Libra
Libra is a project that cannot be defined as owned by Facebook since it falls under a non-profit organization called Libra Association based in Geneva, Switzerland, which so far has on 29 prestigious members, each with a chance to cast a vote for the decisions concerning the project. Soon the number of members will go up to 100.
Facebook has partnered with some of the most prominent brands in the world such as Spotify, Mastercard, Visa, Vodafone, PayPal, Iliad, Lyft, eBay, Booking, and Uber in the quest of making this project a world-class hit.
For better management, at this moment Facebook counts not on one but on two possibilities of votes considering that it also considers the use of another company connected with this, Calibra.
Calibra will deal with a particularly important issue such as the e-wallet, which will keep the cryptocurrency safe. Both the Libra and Calibra will debut together by 2020.
How Libra works
First thing first, Libra does not have a profit objective on the currency itself but on the contrary, it aims at concrete stability supported by very important financial assets, which will guarantee low volatility of the value to fully exploit the true nature of this project or that of the currency digital.
But what is Libra specifically and what makes it different from the Bitcoin? In a short note, Bitcoin and the other cryptocurrencies are indeed a safe and impalpable resource as localized only in the network as Libra, but their nature is speculative given that the value changes, and even much, with a trend very similar to the securities.
In short, investing by buying large quantities of vibrate, hoping for a boom, is a project that must be suppressed before it is even born because Libra will be like one of the great national currencies with the difference that it will be decentralized and usable everywhere.
You can, therefore, spend on social networks but also in the real world with financial investments up to banking operations including loans and mortgages. However, this potential will be expanded only in a second moment, given that in one it will be used only for online services and to offer a virtual and secure platform for developing countries that will be able to transfer money through Facebook.
How the Calibra wallet works
The Cryptocurrency Libra will be backed by the Calibra, its digital wallet which for now is a subsidiary of Facebook given to a former Twitter and Instagram executive, Kevin Weil.
This e-wallet will allow you to safely store virtual money on your account or to exchange it with other people or use to make payments not only through Facebook but also on apps like Messenger, Instagram, and WhatsApp for both Android and iOS.
Libra is the open source blockchain with the Apache 2.0 license that opens the doors to developers to create connected software and applications.
The release of the functionalities related to Libra and Calibra will, therefore, be gradual equalizing to the softwares which are already been allowing for a long time to easily transfer money from one account to another and make payments immediately.
You will be able to send money by scanning a QR code or having your code read directly to any merchant in the real world.
Later, with Calibra and Libra, financial services such as lines of credit will be accessed with potentially much lower commissions than those of traditional banks.
How Facebook will earn with Libra
Facebook with its new cryptocurrency will open the door to a market quantified as about 1.7 billion people who at this moment can only use cash without having the possibility to access a system traditional or digital banking.
With Libra, they would instead have universal support, very easy to use and above all safe.
Without forgetting the economic nature and the possibility of being able to function throughout the globe given the presence of some giants in the sector such as Visa and MasterCard.
The aim of Facebook is, therefore, more to aim at small commissions on very large numbers, especially in emerging countries, offering a quality service that can guarantee a huge amount of return.
At the moment, Facebook has about 2 billion active users and it is not difficult to imagine why this will be the most profitable project ever for the Social networking giant and it is already speculated that Facebook will generate an estimated revenue of 3 to 19 billion dollars by 2021.