After months of anticipation, Facebook’s cryptocurrency, which will be named Libra, was unveiled. With the official announcement, a lot of information about the new coin was published, so we summarized the top 10 things you should know about Facebook’s digital currency.
- A stable-coin:
It has been revealed that the Facebook coin will use its proprietary Libra Blockchain system, designed to be safe and scalable.
The aim of the company is to solve the problems of the Crypto, which is the provision of banking services to all individuals and facilitate international transfers of low fees, through its cryptocurrency is relatively stable price.
- Non-profit project:
Libra, which will manage the project in Geneva, Switzerland, was established and registered as a non-profit project.
The team includes more than 100 founding members including Uber, PayPal, Visa and other major companies. No member will control more than 1 percent of the project’s blockchain network.
- Aimed at decentralization:
In the first stage, the Libra Blockchain will be a semi-exclusive blockchain available to the founding members only, which means that it is the opposite of the Bitcoin network available to all.
But Libra has revealed its intention to become a decentralized network serving as a real public service in the future.
- Anonymous transactions:
It has been disclosed that all transaction data, such as transaction amount, address and time, will be visible only to the founding members of the network.
The project added that it will not retain any personal data for those who use the blockchain and are expected to ask customers to comply with KYC regulations.
- Libra project reserves:
The reserves that support the Libra project will be distributed with a range of low-volatility assets such as bank deposits, government bonds and central bank currencies such as the US dollar, the pound sterling, the euro and the Japanese yen.
It should be noted that Libra will not be linked to a single currency and has no fixed value against any currency in the real world.
- Security Token (STO):
Facebook will launch the Libra Investment Token (STO) offering as a way to provide incentives and cover operating costs.
The investements will only be available to authorized investors and token holders can take advantage of the potential interest on reserves.
- The costs of running the Node:
Companies that intend to operate the Node to verify transactions on the blockchain network should invest $ 10 million in Libra investment codes.
According to the white paper, the annual cost of operating the node is expected to reach $ 280,000.
- Systematic entity:
Facebook has launched Calibra, a subsidiary of FinCEN, to ensure its services as a financial company.
Details of entity registration can be found here .
Any developer who wishes to use the project’s “libra blockchain” must comply with the laws and regulations of the country in which they operate. Libra will not conduct any organization of projects based on its network.
- Launch in 2020:
Facebook has revealed that the main announcement of the Libra digital network and currency will be in 2020. The Testnet network is expected to be launched in the coming weeks to allow developers to provide feedback on the network.
Please note, that is not a bit of financial advice, nor the WhaleToBe team’s view