A simple idea of making money global, safe, steady and to create a platform where everyone can get the right to experience the equal financial opportunities laid a path for the invention of Libra.
Technology has transformed the world around us and made it a smaller place, people can easily send texts, pictures, and documents but when it comes to transacting money things become a little complicated.
What is Libra
Libra, a simple global currency launched by the renowned social media giant to raise the standards of financial infrastructure and to empower the people who don’t have bank accounts all around the world.
The main objective of launching Libra was to introduce a currency which has the competence to bring everyone under the same roof and to empower millions of unbanked people.
- 31% of the total population doesn’t even have a bank account, the remaining people who have access costs are high. it nearly costs 7% to send money globally.
- 85% of the world’s transactions take happens in the form of cash, it becomes difficult to store cash but it can be moved easily. US retail businesses face $40 billion in losses annually due to the theft of cash.
- It improves people’s earning potential by 20% and reduces extreme poverty by 22%.
Most of the cryptocurrencies in the market are not backed by any stable assets to maintain their value. Listening to the speculations and investments as a primary use case, people bought these coins hoping their value might increase when wanting to resale.
What is Libra Blockchain
The Libra Blockchain is a decentralized, programmable database delineated to back a more stable cryptocurrency that will have the potential to serve as a well-organized channel of exchange for billions of people all around the world.
There is a Libra protocol to contrivance the Libra Blockchain and focuses to build a financial infrastructure that encourages innovation, nether hurdles to entry, and improves access to financial services.
Libra is a self-made association, it is a non-profit organization going forward with a vision to emancipate billions of people around the globe by offering them a global currency and financial infrastructure.
The validator nodes of the Libra network form the association. Basically, these are social impact partners, international corporations, and academic entities. In due course, the association will incorporate any institution that operates validatory nodes and possesses enough stakes in Libra.
The Libra Blockchain is an assigned system that controls both ownership of Libra and the transfer of Libra from one user to another. It is an important thing that all the users of Libra should acknowledge the consistent view of the system.
Otherwise, a spiteful actor might claim he was paid when he didn’t even send funds. This is called “double spending attack”.
Blockchain helps in preventing these type of attacks using LibraBFT, an adaptation of HotStuff Byzantine Fault Tolerant agreement protocol.
Decades of research went into building LibraBFT, the research was mainly on the behaviour of the computer when they work together despite few computers have faults in their functioning.