American social networking platform launches its own cryptocurrency module. Facebook Libra is the latest cryptocurrency which will make ease for sending money. It will change the way of global commerce and access to financial services without having a bank account. In June, Facebook announced Libra but a final version is yet to come next year.
Facebook Libra – how does it work and management details
The Cryptocurrency runs on the latest technology known as the blockchain. A blockchain is a streak of server or sometimes called as nodes. The node records every other transaction made on the network.
However, other blockchains allow relative servers to join the existing chain. But, Facebook Libra is a closed or permission granted chain. This term means that only allowed or permission gained servers can join the chain.
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
There is a twist in the making of the cryptocurrency. However, Facebook developed its infrastructure but it won’t handle the virtual currency. An independent association known as Libra Association will take charge of all its process.
The association consist of 28 founding members based in Geneva, Switzerland. In addition, a total of 100 members to join the association during its launch.
How the cryptocurrency will maintain stability and its subsidiary wallet?
Another question arises, how will Facebook Libra maintain its stability? In reference to this, the currency will be less volatile in comparison to other cryptocurrencies. This means that it is related to real currencies and its value won’t be fixed to any of the physical currency.
On the other hand, Calibra wallet, a subsidiary product from Facebook. This Calibra wallet eventually helps users to store Libra and it is sharable like text messages. Moreover, Calibra wallet is an independent platform that will connect Messenger and WhatsApp.
Moreover, no personal details or user information will be shared with Facebook. It is an independent association and might ask for permission from users to share their details in-case of fraud.
Thus, Facebook Libra will generate more ad revenue by enabling transactions between users and businesses.
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