Face book Inc is an American social media company founded by Mark Zuckerberg, together with his roommates at Harvard. It is based in Menlo, California. The company builds technologies that connect people with their families, find communities, and grow business.
During the start of this year, news about facebook's Libra, aka global coin flooded all over newsfeed, timeline, and social networks. A lot of people have debated about Libra, its pros, and cons. It has been called a glaring attempt to control crypto by big companies.
In this part, I will give a brief history of the coin and the opportunity Facebook has to help the unbanked and the stable structure of Libra.
A short Timeline
It is said that Facebook had a rough time in 2018, but I think that is an understatement. Cambridge analytical scandal-hit Facebook in March 2018; over 50 million Facebook user data was breached. Following this facebook CEO Mark Zuckerberg was forced to attend the congressional hearing personally. Because of this scandal, facebook's shares were affected. The stocks dropped by 20%. However, it was in the middle of 2018 that Libra was "planted." In May 2018, it was revealed that Facebook wants to run a blockchain under the supervision of David Marcus, who oversaw the creation of facebook messenger.
In December 2018, news came that Facebook wanted to make cryptocurrency, which would make it easy to transfer money. The currency would operate in India because of the large number of WhatsApp users.
Eventually, in 2019, Facebook released Libra white paper upon announcing it. The coin will be launching in 2020.
To understand why Facebook wants to get itself into the crypto industry, let understand one of the most significant issues in the world today. Business Insider reported in August that 20 billion people around the world don't have a bank account. Below is a statistic report about the unbanked population.
- 7 billion adults remain unbanked
- Women make more than 55% of the unbanked population.
- India has over 430 million unbanked population.
How will facebook help this population?.
We are living in a world where technological advancement is so high. We call it a Digital word.
Let's look at the figures to understand this better.
- Phone users in 2018 were 5.123 billion.
- The number of internet users in 2018 was 4.021 billion.
- Facebook has more than 2 billion active users around the world.
- The largest population of facebook users is from India.
This is the target that Libra wants to make an impact. If Facebook manages to convince the majority to use Libra, then they will succeed in convincing their family and friends to adopt it too.
FaceWhat is book libra?
Libra is a single global currency and financial infrastructure. Its purpose is to empower people. Features of Libra include;
- It built-in a secure, scalable, and reliable blockchain.
- It is a stable coin, backed with a reserve of assets.
- I use the libra BFT consensus mechanism.
Facebook libra conclusion part 1
That's all about Libra for this part 1. In part two, I will talk on; Libra's stable coin design, three kinds of stable coin, understanding pegs, properties of stable coin transaction structure and fees, and libra blockchain.