The long-awaited and long-awaited, just as the outside world expected, the Facebook cryptocurrency project Libra white paper was officially released on June 18.
Deep Chain Finance analyzed and interpreted the Libra white paper for the first time. The white paper mainly expounded the basic information of Libra's goals, characteristics, vision and plans.
As you know before, Libra tokens are stable tokens that anchor a basket of currencies. Libra has established an association that includes payment, telecommunications, trading platforms, venture capital, non-profit organizations, etc.
In addition, the white paper also revealed some new content, such as the source of Libra token reserves, the leadership and management of the Libra Association, and the launch time of Libra.
However, as a Facebook-led project, the white paper does not cover issues such as how Libra integrates with Facebook's existing business and Libra's compliance.
Libra's mission is to build a simple, borderless currency and financial infrastructure that serves billions of people.
[Deep Chain Original]
Text丨doorman
What is Libra?
Libra's mission is to build a simple, borderless currency and financial infrastructure that serves billions of people.
What are the parts of Libra?
Libra is mainly composed of three parts that will work together to create a more inclusive financial system.
1. Built on a secure, scalable and reliable blockchain foundation
Because it is designed to serve people around the world, the software that powers the Libra Blockchain is open source so that anyone can build on it, and billions of people can rely on it for their financial needs.
Imagine an open, interoperable ecosystem of financial services that developers and organizations will build to help people and companies hold and transfer Libra for everyday use.
With the proliferation of smartphones and wireless data, more and more people will be online and using Libra through these new services.
To enable the Libra ecosystem to realize this vision over time, we built the blockchain it needs from the ground up, prioritizing scalability, security, storage efficiency and processing throughput, and future-proofing sex.
2. Backed by a reserve of assets that give it intrinsic value
The currency unit of Libra is called "Libra". Libra needs to be accepted in many places and should be readily available to those who want to use it.
That said, people need to trust that they can use Libra, and that its value will remain relatively stable over time.
Unlike most cryptocurrencies, Libra is fully backed by a reserve of real assets. For each newly created Libra cryptocurrency, there is a corresponding basket of bank deposits and short-term government bonds in the Libra Reserve to build people's trust in its intrinsic value.
The purpose of the Libra Reserve is to maintain the stability of the value of the Libra cryptocurrency, ensuring that it does not fluctuate wildly over time.
Reserve funds mainly come from two aspects, one is token investors and Libra users, the Libra Association will pay Libra to reward founding members to encourage users, merchants and developers to adopt; second, tokens issued as incentives Funding will come from a private placement to investors.
3. Managed by the independent Libra Association, dedicated to the development of the ecosystem
The Libra Association is an independent, not-for-profit membership organization headquartered in Geneva, Switzerland.
The association aims to coordinate and provide a governance framework for networks and asset reserves, and to lead socially impactful grants to support financial inclusion. The association's membership system consists of a network of validator nodes operating on the Libra blockchain.
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Who is the leader of Libra?
The Facebook team, in collaboration with other founders, played a key role in the birth of the Libra Association and the Libra Blockchain.
Facebook will retain its leadership role until the end of 2019, with the Libra Association having final decision-making power.
Facebook created Calibra, a regulated subsidiary, to ensure the separation of social and financial data while building and operating services on the Libra network on its behalf.
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What are Libra tokens?
The world needs a global, digitally native currency that combines the characteristics of the world's best currencies: stability, low inflation, universal global acceptance, and fungibility.
The Libra currency is designed to help meet these global needs, with a view to extending the reach of money to people around the world.
Libra's goal is to become a stable digital cryptocurrency that will all be backed by a real asset reserve (called the "Libra Reserve") and supported by a network of competing trading platforms that buy and sell Libra.
This means that anyone holding Libra can get a high degree of assurance that they will be able to exchange their holdings of this digital currency for their local currency based on the exchange rate, just like exchanging one currency for another when traveling .
This approach is similar to how other currencies have been introduced in the past: making sure that this currency can be exchanged for a real asset, such as gold.
The purpose is to help build trust in the new currency and achieve widespread use in its infancy. While Libra will not be backed by gold, it will be backed by a range of low-volatility assets such as cash and government securities provided by stable and reputable central banks.
It must be emphasized that Libra is not always convertible into an equivalent locally designated currency (i.e. Libra is not "pegged" to a single currency).
Conversely, as the value of the underlying asset fluctuates, so may the value of Libra in any local currency.
However, the purpose of choosing a reserve asset is to minimize volatility and give Libra holders confidence that the currency will hold its value in the long run.
Assets in the Libra Reserve will be held by globally distributed custodians with investment-grade credit ratings to ensure asset security and decentralization.
The asset behind Libra is the main difference between it and many existing cryptocurrencies, which lack this intrinsic value and therefore fluctuate wildly in price based on psychological expectations.
However, Libra is indeed a cryptocurrency, and as such, it inherits several compelling properties of these new digital currencies: the ability to transfer money quickly, security through encryption, and the ease and freedom to move money across borders.
Just as people in today's world can use their mobile phones to send messages to friends anytime, anywhere, we can also manage funds instantly, safely and economically through Libra.
Interest on the reserve asset will be used to cover the cost of the system, ensure low transaction fees, distribute dividends to investors in the early stages of the ecosystem's launch, and provide support for further growth and adoption.
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When will Libra be launched?
libra.org publishes the home page for the Libra Association and information on all things Libra, and the site will continue to publish updates in the coming months.
The source code of the Libra blockchain has been opened, and Libra's initial test network has also been launched for developers to try and develop on this basis.
Libra's scheduled release date is the first half of 2020.
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