Today Facebook
released long-awaited details about its blockchain venture Project Libra. It confirmed the cryptocurrency to launch in 2020 will be backed by a basket of currencies and government securities to enable stability. It has built a new open source smart contract language and blockchain protocol. The blockchain will initially be permissioned with plans to become permissionless. Twenty-seven brands have signed up to run nodes on the network and are rumored to have invested $10 million each.
A
whitepaper was released with a new Libra Association dedicated website. There are two organizations involved. One is Libra Networks based in Geneva which will run the blockchain. Separately, for any solutions that Facebook itself plans to deploy, it has incorporated a subsidiary Calibra.
Previously known as GlobalCoin, Facebook’s blockchain based token Libra has been created to address the lack of global financial services. Today’s release claims that 1.7 billion adults don’t have an active bank account. Meanwhile, Facebook’s colossal user base could be the perfect way to give many people access to low cost, fast, and secure money transfer.“Libra will bring more inclusive financial services to billions of people,” reads a statement on the Libra website.
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Image Copyright: Facebook
