Facebook New Digital Currency Libra – All You Need to Know
For us, as Facebook marketers, any addition to the platforms, even the slightest one, matters and makes the difference.
BUT when something so big happens, everyone not depending on their job and specifications MUST study the subject. I am talking about Libra– the Facebook’s new OWN cryptocurrency.
Although it won’t be until 2020 when Libra will start working, let’s talk about it to understand what to be prepared for.
So what is this ‘Libra’ thing?
In essence, it should be NOT a field for playing around with stocks, like Bitcoin is, self-sustained digital money that is supported by required asset reserves.
Developed SPECIFICALLY for ONLINE payments, as per the Libra’s white paper, it should be used to send payments between people in Third World countries at the beginning.
As Facebook says, the FINAL goal is much different – the worldwide cryptocurrency system that will be used for buying any kinds of products and services, be that credits, purchases, or loans.
To make it work, Facebook has built a strong alliance with the related organizations, including such GIANTS as eBay, Mastercard, Visa, and Vodafone.
AND how does it ACTUALLY work?
While the whole technical process is complicated, the two CORE parts of Libra will be Libra Association and Libra Reserve.
1.Libra Association– the Swiss-based organization that will be single-handedly responsible of the validation of the new nodes included into the Libra blockchain.
Facebook reports that they will start with 100 nodes and scale up gradually whenever the capacity requires and more and more businesses start using it.
This system is actually what distinguishes Libra from other cryptocurrencies such as Bitcoin that people use for mining coins.
Instead of relying on its community, Libra centralizes all its operations by using a reliable validator service.
It also will use the additional accuracy insurance system – Byzantine fault tolerance. At the core of this method is the idea that even when not all the nodes are in the agreement, the validator still can find the best possible solution.
2. Libra Reserve– the founders of Libra must additionally invest the funds into this reserve, by agreeing on subsequent future dividends.
The idea behind this pool is the stability of the currency, without its rise or fall, not the example of how the US Dollar is working.
Why is Facebook doing this?
This is the question that we need to find the answer to in future.
Reportedly, Facebook has said that they will remain only the members of the Libra Association, without any privilege, despite all the work they have done to make Libra a reality.
We believe that Facebook just wants to further expand its level of influence, and this is the long-term investment on their side.
If yes, trying to work with Libra at the early stage of its development is definitely a shot worth taking.
Should we trust and use Libra with Facebook?
As we all know well, Facebook LOVES collecting and selling data to anyone interested and ready to pay.
However, in the case of Libra, all the precautionary measures seem to be in place:
– It is programmed by Rust – a strong tool for working with large memory assets securely;
– At the website, they provide a disclaimer that NO DATA ABOUT LIBRA USERS will be stored by Libra itself;
– It is also said that the protocols themselves will have NO information about the REAL IDENTITY of the user;
– Calibra – the Libra’s own electronic wallet should make the system closed for any outside influencers;
As for me personally, I think that, despite all the beautiful words about security and privacy, Facebook is hard to trust with your personal info, and only the future will show the viability of this system.
What about you, guys? How do you think it will work for us, Facebook advertisers, and other Facebook users. Do you intend to try Libra on and implement it into your work? Feel free to discuss this ABSOLUTELY INTRIGUING topic in the comments below.
Let’s share our ideas and boost our sales together!