Facebook Presented the Details of the Libra Cryptocurrency Project

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A website for the Libra itself has been launched. On the new website, you can get acquainted with more detailed information about cryptocurrency, including a list of its partners and white paper.

Calibra — Facebook application for Facebook cryptocurrency

Facebook provided open access to the website of its cryptocurrency project before the publication of the official announcement. The authenticity of the resource is confirmed by The Block analyst Larry Chermak.

What is Calibra?

Calibra is an application that is designed to work with Libra — a new cryptocurrency.

“The Calibra app is based on the innovative blockchain technology, which allows people to enjoy the benefits of additional freedom, security, and accessibility when making everyday transfers. It will be available at the global level,” writes the social network.

Facebook promises that Calibra will be released as a stand-alone application for iOS and Android, as well as integrated into the company’s existing platforms, including WhatsApp and Messenger.

“This means that 2.7 billion Facebook users will be able to access Calibra’s functionality through applications whose clients they already are,” the company adds.

According to the publication, Calibra is a division of Facebook and operates independently of the social network. The company is headquartered in California. Facebook reports that Calibra is still under development. Users are encouraged to ask for early access.

Who can use Calibra?

It is known that the use of the application will require the identification of the user through an identity document.

Calibra undertakes to transfer financial information to Facebook or any other third parties without the prior consent of the client. At the same time, the project is being prepared in accordance with the recommendations of the Financial Action Task Force on Money Laundering (FATF) and other standards in the context of combating money laundering and terrorist financing.

The company promises to make an effort to make its decision publicly available throughout the world. However, the specific countries whose residents will be able to use Calibra, the company do not name.

What exactly Calibra solves?

Facebook confirms that Libra is a stable exchange rate cryptocurrency:

“Libra is a global blockchain-based cryptocurrency (Libra Blockchain). Libra is fully provided with Libra Reserve — a set of currencies and other assets used as collateral for each Libra that is created, which serves as the basis for confidence in its own value.”

As possible scenarios for the use of Calibra, daily transactions and payments are indicated, “such as buying coffee, food or paying for public transport”. In addition, Facebook offers to use Libra to save money and run a business. Transactions using Libra will require payment of a small commission.

The company declares that with the help of the application, users will be able to convert their national currencies to Libra and vice versa. At the same time, Calibra will display the current exchange rate.

Libra Office

The non-profit organization Libra Association, registered in Geneva, will take over the task of managing Libra. Subsequently, it will consist of 100 members located in different regions of the world. Below is a list of the initial members of the organization:

  • Payments: Mastercard, PayPal, PayU, Stripe, Visa;
  • Technologies and marketplaces: Booking Holdings, eBay, Facebook / Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc;
  • Telecommunications: Iliad, Vodafone Group;
  • Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited;
  • Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures;
  • Non-profit and scientific organizations: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking.

Libra runs as a permission blockchain, that is, initially only members of the network will have access to the network. Over time, Libra will become an open access network. “No one participant can change its rules unilaterally.”

Libra Investment Token

In addition to Libra, a security token called Libra Investment Token will be launched. It will be used to fund motivation programs and cover transaction costs. Libra Investment Token will be available only to accredited investors and will allow you to earn a percentage of the cryptocurrency reserves to its holders.

Companies that want to become owners of a validator node in the Libra system will have to invest at least $10 million in Libra Investment Token issued to the Libra Association. It is expected that the annual cost of servicing a validator node will be about $280,000. Non-profit organizations and other social partners of the project will be exempt from the initial contribution, but not from the cost of servicing the node.

The Move programming language

Perhaps one of the most interesting technical features of the project is the Move programming language created specifically for it. The need to integrate a separate programming language developers explain the desire to provide flexibility when working with blockchain and eliminate the shortcomings of existing solutions.

“There are many problems with existing blockchains in the context of safe code writing. Move is the language in which security is the guiding principle,” the project representative said.

Libra Test and Core Network

The launch of the Libra test network will take place on Tuesday.

“The test network will allow us to receive feedback from the community regarding the direction of the project’s development and further work on a scalable, reliable and safe launch,” the Libra Association reported.

In collaboration with the cybersecurity company HackerOne, the project will launch a bug-trapping program to provide financial motivation to researchers and developers in search of hidden security and privacy issues.

Developers are counting on launching their main network in the first half of 2020.

Author: Marko Vidrih

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