What is Facebook Libra Cryptocurrency

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What is Facebook Libra Cryptocurrency
blockchainexpert.uk
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• INTRODUCTION

Facebook CEO Mark Zuckerberg announced about
their new cryptocurrency libra last week. Along
with this, they released the whitepaper and a
prototype of their client software. Soon after,
the crypto world, as well as the whole internet,
got flooded with the new innovation and related
discussion. One can find tons of literary pieces
already written on the privacy issues with Libra.
Also in parallel, there are different discussions
being carried in the financial as well as
technological world regarding this. Here I bring
in an overview of libra blockchain in limited
words consolidating the whitepaper and 29-paged
technical description. The blog primarily focuses
on the technical aspects of Libra rather than the
raised issues concerning its privacy. The topic
is treated neutrally.
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• To start with, Libra blockchain is a permissioned
  open-sourced blockchain which is expected to get
  launched in the inception of 2020. The design
  promises its extensiveness to other programmable
  resources, not limiting to the cryptocurrency
  alone. There will also be a crypto wallet called
  'calibra' exclusively for libra coins which is
  yet to launch. Libra mainly comprises of three
  parts that promise to work together envisioning a
  more inclusive financial system
• 1. Built on top of libra blockchain
• 2. Backed by Libra reserve
• 3. Governed by the Libra Association
• Libra is a generic crypto asset protocol, and its
  first asset will be a stable coin called Libra.
  Libra is a global cryptocurrency built on top of
  libra blockchain. The cryptocurrency comes fully
  backed with a collection of currencies and other
  forms of assets profoundly called Libra Reserve.
  This reserve moreover functions as collateral for
  every libra that is generated. Thus establishing
  trust in coins intrinsic value.

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a) Permissioned blockchain The libra blockchain
will be released as a permissioned blockchain.
ie. only the members of Libra association are
permissioned to participate in the blockchain.
Libra Association performs more like an
independent yet a not-for-profit membership
organization.
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From their white paper, it is ascertained that
they will transform themselves into a
permissionless system in 5 years. If that comes
true, it will be the first blockchain to achieve
such a transition. b) Consensus protocol The
consensus protocol used in Libra is termed as
libraBFT. Each member of the libra association
acts as a leader in each turn, and validate
transition in that turn. c) Open source The
source code is available on their git repository
under Apache-2.0 license. d) Built in rust
language e) Logical data model The logical data
model is account based similar to ethereum,
rather than the UTXO model of bitcoin. f)
Smart-contract Libra introduces a new programming
language for its smart-contract purposes -
"move". This runs on the move virtual machine
similar to ethereum.
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g) Transaction cost Similar to ethereum, the
libra imposes a gas fee on libra coins for each
transaction. h) Minting of new coins In Libra,
only a few trusted members of the Libra
Association can create new Libra coins. i)
Blockchain without blocks! There will be no
concept of blocks of transactions. Being a
permissioned blockchain, the process of batching
up transactions is not necessary. Despite the
contrast over the technical advancement libra
will bring, or the casualties it gonna make to
the existing blockchains, the technology is
expected to make a footprint, introducing the
blockchain technology to more common people. You
can expect more blogs based on Libra in coming
days breaking down the new technology.
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Click here to read more about What is
Facebook Libra Cryptocurrency
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