Yesterday, Facebook announced the launch of a blockchain-based cryptocurrency, called Libra, due to be managed by a non-profit entity known as the Libra Association. For the currency’s development, as many as 27 different enterprises are expected to contribute at least $10 million, each. This project is a massive undertaking, and is expected to reshape the cryptocurrency landscape.
“…existing cryptocurrencies like Bitcoin and Etherium weren’t properly engineered to scale to be a medium of exchange. Their unanchored price was susceptible to huge and unpredictable swings, making it tough for merchants to accept as payment,”
Backed against the US Dollar or the Euro, Libra will encourage internet based business transactions. People will be able to spend it using third-party wallet apps, Facebook’s own app, along with WhatsApp and Messenger. Successful commercial exchanges are likely to prompt business groups to up their advertising on Facebook’s site, scaling the company’s revenue stream.
“The payment system would also help American companies compete for financial transactions in developing countries,” writes The New York Times, noting the dominance of WeChat in Asia. In addition, the currency is designed to serve as a medium for global financial inclusion, enabling those in third-world countries to access new opportunities.
The Libra blockchain is available via open source with an Apache 2.0 license and will be built with the Move coding language. The Libra Core, however, relies on the Rust programming language as it is specifically engineered for reducing vulnerabilities, and the Move language is still in a development phase.
The expected release date for the cryptocurrency has yet to be announced, but it’s likely to emerge within the first half of 2020.
For the technical details about this cryptocurrency, visit Tech Crunch.