The veil of the crypto-currency from the house of Facebook is revealed: “Libra”, the Name of the crypto-currency, in which many large companies to participate, – want to compete as a global “currency for all”. It is the linchpin of the success of Libra with the size of the network – one of the few similarities, the Libra connects currencies with a real Crypto.
By Christopher clover
18. June 2019BTC$9.159,00 -1.02%part Facebook Twitter LinkedIn xing mail
This, among other things, of Facebook-initiated payment network Libra has 18 on. June, for the first time in the world on public display. From a media release, the BTC-ECHO is present, the Social Media giant with a specially created subsidiary by the name of “Calibra” on the network.
Facebook join the Libra Association, a newly formed subsidiary, Calibra, which will build financial services for Libra. The first product of the Calibra will be a digital Wallet for Libra, which will be in Messenger, WhatsApp and as a standalone App available.
The subsidiary Calibra should also ensure that a clean “separation of social and financial data” is possible.
in addition to Facebook, numerous other “big fish”, from various industries, frolic in the Libra network.
payments: MasterCard, PayPal, PayU, Stripe, and visa technology, and market places: booking investments, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify as well as Uber Technologies, Inc.Telecommunications: Iliad and the Vodafone group block chain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings limited risk capital, Andreessen Horowitz, Ribbit Capital, Thrive Capital, Union Square Venture, non-profit and multilateral organizations and academic institutions: Creaive Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
In the introduction of the White Paper States that the number of participants up to 2020, to 100 to zoom in. “Participants” means: the operator of the network nodes (Nodes).
network node in Libra, only the technological infrastructure available; they are as so-called “Validator” Nodes for the confirmation of transactions in the Libra network. Further, you determine who gets access to the network. For permission to operate a Node, should have paid the company US $ 10 million. Apparently, a separate Token came for this purpose. In the technical White Paper of Libra, the talk of a “Libra Investment Token is purchased”, with the founding members in Libra.
Libra as a Stable Coin for Facebook & co.
The Libra-“the Blockchain” is not, however, without its own crypto currency. This bears the name “Libra” and is designed as a so-called “Stable-Coin”. Stablecoins are pursuing the goal to maintain a stable (Counter)value. There are a variety of approaches, these ensure the stability of the value (more on this in our detailed Tutorial). Probably the nachvollziehbarste approach is the coverage of a Stable Coin with reserves in Fiat currencies like the US Dollar or the Euro.
The Reputation of a Stable Coin stands and falls, however, with the transparency of its coverage is evidenced. So about Tether, the company behind USDT, the largest Stable Coin by market capitalization, again and again in the criticism, because it remained a water-tight proof of his reserves of not guilty. After Tether was held for a long, to have for each USDT a Fiat US dollars in the account, rowed back to the group now. The outstanding USDT Token to be covered 75 percent by Fiat deposits; the rest of the cover is ensured by other crypto deposits.
While industry leader USDT should always reflect the price of a US Dollar, wants to set up Libra wider. The price of the Libra Coin is supposed to be geared to a whole basket of currencies – including US Dollar, British pound Sterling and the Euro. To make Libra resistant to price fluctuations of a single currency.
the area-wide promote acceptance [of the Libra Coin], is Libra designed to be used as a currency where every user knows that the value of a Libra will be close to its value tomorrow. Thus, as consumers in Europe, the Libra know that the number of euros you need today for the purchase of a Cup of coffee, the number of Euro balances, the you need tomorrow for the purchase of a Cup of coffee, can owners trust that the value of your Coins today will be relatively stable.
Libra: Covered by government bonds
Similar to Tether, has Libra on the so-called “Reserve”, in the reserves for the coverage of the Libra Coin store. Unlike the Tether, the Libra Association makes, however, no secret of the fact that your crypto-currency is only partly covered by Fiat deposits.
Due to the complete coverage of each Coin with a stable and liquid assets and the cooperation with a competitive group of stock exchanges and other liquidity providers can trust the user that they can sell every Libra, at any time, at the same or close to the value of the Reserve. This gives [Libra] on the first day of an intrinsic value and protects currencies from the speculative fluctuations of other Crypto.
In the case of the non-liquid, low volatile Assets according to the White Paper “a collection of assets with low volatility, including Bank deposits and government bonds in the currencies of stable and reputable Central banks”. For Liquididät short-term government bonds which can be traded on highly liquid markets, are against it.
Libra-investors to calculate the long term
The Reserve is being fed from two sources. On the one hand, from the proceeds of the financing round, in which the Node operator, so-called “Libra Investment Token” against Fiat money exchanged in. The second source of revenues form the Libra user. This will get the “crypto-currency” only against Fiat money.
The interest revenue from the Reserve, which are to arise out of investments in low-risk assets, for the benefit of the founding members of the Libra Association. However, in the last place, if you Believe the White Paper gives:
The revenue from these rates will initially be used to support the operating costs of the Association – to Finance investment in the growth and development of the Ecosystem, of grants to non-profit and multilateral organizations, research, etc. Once this is covered, a part of the remaining Renditen of the early investors of Libra Investment Token paid […]
Due to the relatively low fluctuations in the prices of Reserve Assets, is the rate of return for the early investors, driven largely by the growth of the network and therefore the Reserve-dependent.
focus on Emerging and developing countries
While the Narrative of Libra aims to be the new payment network, especially to Emerging and developing countries, whose populations have limited access to financial services. This is reminiscent of the Credo of Banking the Unbanked, many crypto have posted projects to the Flag.
financial inclusion is the leitmotif of the marketing for Libra, what is easy to see from the presentation video from Libra to recognize forms.
Introducing Libra
watch This Video on YouTube.
And so knock off the partners involved – from MasterCard to PayPal in the notch of the financial and economic emancipation. From the long list of marketing-oriented opinions of the founding members, was cited on behalf Jorn Lambert from MasterCard:
The Innovation of tomorrow may already be an idea. We are committed to ensuring that the Internet is of
comes with the involvement of all. Through the creation of partnerships, to explore new approaches, to help shape and test, we can cultivate ideas, in order to realize the inclusion sooner than some might think.
Financial inclusion, banking the unbanked and the digital Transmission of values – one could almost think that project Libra crypto has invented currencies. Just with the difference that in the case of Libra, neither the Blockchain technology in the narrower sense is used, the network with its as a Gatekeeper active network node is anything other than inclusive and the idea that large companies are for the operation of Libra responsible, the Bitcoin Ideal of complete decentralisation of payments practical diametrically opposed.
Libra exists so far as a prototype. Also, the Reserve has yet to be established, and geographically distributed. This should be done in the following months. In Parallel, the developers are working on various programming interfaces for Libra-your own programming language “Move cut”.
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