What is Facebook’s Libra ?
Social Network giant Facebook is set to launch its own virtual Currency “Libra” next year enabling users to transact through a digital wallet on Whatsapp and Facebook Messenger . The American company Facebook has floated an independent subsidiary ‘Calibra’ for its Bitcoin business . Separately, it has formed a Libra association for the Cryptocurrency with 27 members including Master Card, PayU ,Paypal, Ebay and Uber to ensure the virtual currency is accepted by merchants across the World.
On basic contrast with Bitcoin , Facebook’s Libra is not an investment and its direct opposite of Bitcoins in many way Worldwide many people comparing the Facebook’s Libra with Bitcoin, and thinking that the Libra will have a lot of common with Bitcoin. But , the assumption is totally wrong in many ways . Here we explodes some key differences between Bitcoin & Facebook’s Libra. check the list below .
- Permanent Recording and Tracing of All Transactions :
What people really like about Bitcoin is anonymous nature of the transactions and the potential for moving money between people and between nations with complete secrecy . The Libra White paper is quire clear that will not happen with Libra. The Facebook’s Libra is stating that intend their new Cryptocurrency to be the direct opposite of Bitcoin. It will be set up for regulatory compliance.
- Permission Node Verification :
One of the most critical difference between Bitcoin and Facebook’s Libra is that Libra for at least the first five years will be based on “Permissioned Node verification” .
Blockchain as described as either permissioned or permission-less in relation to the ability to participate as a validator node. In a “Permissioned block-chain ” access is granted to run a validator node. In a “Permission less blockchain” anyone who meets the technical requirements can tun a validator node. In that sense, Facebook’s Libra is a permissioned blockchain.
- “Stablecoin” Means No monetary System hedge or Independent Investment Status
One of the most interesting part of Bitcoin is its origins as an alternative to the global monetary system . It was intended for savers who did not trust the integrity of the USD or the EURO , and who wanted to place to put their money that was not controlled by Central Banks or subject to inflation via unlimited monetary creation. In that sense Libra directly opposite the concept of Bitcoin.
- Complete Tracking of All Minting and Burning :
Libra will not be mined but minted through n entirely different process . A Libra is created or minted when a normal national currency is spent to buy one. That currency is taken by the Libra Association, and used to buy part of the pool of global bank deposits and government securities that form the Libra Reserves .
- Interest Income Goes to Association-Not Consumers
The Libra association is not a non profit association. Interest on the reserve assets will be used to cover the costs of the system. User of Libra do not receive a return from the reserve.
Source : seekingalpha Article