The adoption of blockchain and cryptocurrencies has increased exponentially since the last decade and what began as an unknown protocol for almost all, ended up being taken into account by the social networking giant, Facebook, which since last year have been carried out a series of efforts to structure what could become the largest cryptocurrency in the world. The idea is clear, an efficient payment system with intellectual actors capable of carrying out a revolutionary project.
Libra corresponds to the name that Mark Zuckerberg, co-founder of Facebook, chose for the new cryptocurrency destined for its platform, in order to make universal payments through the Internet, including the attached social networks, such as Instagram and Whatsapp. It has been announced that this new digital asset will be a stablecoin, that is, each token will be worth 1 USD, in order to prevent the instability and volatility present in other crypto like Bitcoin. Although this project has developed relatively fast, the steps have been taken very carefully. Libra will have the support of more than 100 renowned financial companies, among which are the well-known MasterCard, Visa and Paypal.
Calibra: An independent financial subsidiary
Calibra will be a digital wallet that will store and use the new digital currency Libra. In other words, it will be a payment platform for Facebook, Messenger and WhatsApp existing as a separate application on iOS and Android. A wallet connected to the whole world and multiplatform, a portfolio that will allow you to send money quickly and will be based on this new digital currency in which you already explain from the beginning that you will not be in the hands of Facebook.
This way Calibra is destined to work, a totally new payment system destined to face Libra, the cryptocurrency that will try to offer the benefits and comforts of managing the economy digitally without repeating the errors and defects seen in other coins.
How will the crypto market react?
Currently, the cryptocurrency market is going through an uptrend not so similar to the one that took place two years ago. At that time, the price of Bitcoin reached an all time high of USD 21,000, driven by the inclusion of new investors who injected their capital into the market and the shocking news of adoption, which gave hope to skeptics and attracted their attention. time to new members of the community.
Bearing this in mind, we should know that the current uptrend presents a series of differences with the previous one, since it was shown that searches in Google at that time was much higher than at present, which together with other obvious factors such as exaggerated injection of capital from one day to the next and the collapse of the price hours later, suggest the manipulation of a market through the so-called whales (people who move large amounts of money in BTC to take profits from the market).
The participation of Libra in the crypto market will be impressive, because it is the perfect sign to attract all that public that has not started in the community, either due to lack of the necessary knowledge or due to lack of economic opportunities (all Facebook, WhatsApp and Instagram users will have access to Calibra, where they can receive any type of payments in this cryptocurrency). Libra will serve to make you understand the concept of Blockchain and digital assets, so these people who still do not know Bitcoin and the Altcoins may later enter the market, meaning this goal an opportunity to produce even more income.
In this way, the price of Bitcoin and other cryptocurrencies will be positively affected, which could add to the upward trend that the market is currently experiencing and hopefully will continue to develop until 2020.
A financial revolution
Everything indicates that Libra will be the crypto that will take over in terms of ease of payments, considering the number of people registered in social networks such as Facebook, Instagram and WhatsApp instant messaging service. Areas of work such as marketing will be driven by the launch of this new project, since it will greatly facilitate the process of hiring personnel working in distance advertising.
Added to this, we can experience in the foreground the daily routine of making virtual payments from your social media account to services that you want to acquire, products that you want to buy or invest in a specific area, basically what you dreamed of doing with Bitcoin, although most likely, Libra will be giving a bigger step in that direction.
A programmable cryptocurrency
Like the Ethereum cryptocurrency, Libra’s technical document defines interesting ways in which its users can interact with the main software and the data structure. For example, anyone can make a non-voting replica of the blockchain or execute several read commands associated with objects (such as smart contracts or a set of portfolios) defined in Libra.
Crucially, Libra’s designers seem to agree with Ethereum that the execution code should have a cost, so all operations require the payment of Libra as gas to function.
Unlike Ethereum, Libra makes two major changes to its smart contracts. First, it limits how much users can do with the protocol at the beginning (all of the Move functions are not yet open). Secondly, the software data is broken down, so that an intelligent contract (which Move refers to as a “module”) can be directed to any group of assets, which transfers the so-called “resources”. Therefore, a set of codes can be used in any number of portfolios or collections of assets.
Calibra’s privacy management
When Calibra is available, users will need to present an official identification document to register for the account. This is because being a legal currency, you want to avoid fraud and verify the real identity of people.
Facebook explains that “the activity of each transaction in Calibra will be private and will never be made public”. The privacy focus of consumer data is one of the aspects that has been more detailed:
Except in limited cases, Calibra will not share account information or financial data with Facebook, or with any third party without the client’s consent. For example, information and financial data will not be used to improve Facebook ads. Although, there will be some exceptions: fraud and crime prevention, compliance with the law, service providers and processing of payments and global data. Additionally, Calibra will use global Facebook data that is not linked to the Calibra account to improve the product.
Setback with the US Congress
US lawmakers have officially asked Facebook to stop the launch of Libra, explaining their motives in a letter addressed to the head of the social network, Mark Zuckerberg, the general director of Operations, Sheryl Sandberg, and the head of the subsidiary Calibra, David Marcus.
The letter, which is signed by both the chairwoman of the Financial Services Committee of the House of Representatives and the leaders of the Finance subcommittee, points out that leaving products and services like these, with a half regulation and without sufficient supervision can raise “systemic risks that would jeopardize the financial stability of the United States and the world”.
In addition to warn of potential dangers to the interests of the country and other economies of the planet, Water raises doubts about possible security problems and weaknesses in the systems, explaining that there are many aspects of the project that could be used for non-permitted purposes.
The Legislators’ letter stipulates that due to the number of Facebook users (which occupy more than a quarter of the world’s population), it is necessary for the parties involved to delay implementation plans until all risks are carefully analyzed and discarded. .
Facebook has been very cooperative in this process, hoping in this way the feedback of the Congress. In turn, Zuckerberg has stated that the functions and interests of Libra are not strictly linked to Facebook or its ability to store user information.