Cryptocurrency has been the talk of the time for some time and with the proposal of Facebook’s own cryptocurrency known as Libra, it’s been a while to evaluate the understanding which differentiates libra from bitcoin.
Facebook’s libra coin will be used as a digital asset to access global payments which are developed with the vision of the financial empowerment of people around the globe. The salient features of Libra as mentioned in their whitepaper are;
● The libra modus operandi is designed on secure, measurable and reliable blockchain components. Reliable assets aiding the entire operation along with the independent Libra Association heading the entire operations provide it a secure and generic outlook which otherwise isn’t found in other crypto-currency.
● The libra currency shall be supported by reserves through real assets functioning in the commercial market. Financial aids from both government, as well as private organizations, shape up the libra reserve.
● Due to its open mode of transaction supported by the financial markets, libra is more of a stable coin whose value shall be controlled and influenced upon present market conditions.
● Libra shall be a permissioned blockchain and eventually develop to become a permissionless network.
Libra was declared by Facebook as per their whitepaper released on June 18. Libra would be operational from early 2020, As it isn’t very likely from the recent circumstances which are not in Libra’s favor as Paypal, Visa, MasterCard, stripe, and others walk-off from their partnership with libra in a recent move. Not just this Libra is being criticized widely by regulators and governments.
Libra vs. Bitcoin
The grandeur amongst cryptocurrency bitcoin has much to differ against the to be functional facebook’s cryptocurrency libra. Let us look upon the specifications that highlight their differences:
|Centralization||Operates through decentralization. No single point of entity to control it.||Controlled by Libra Association and oversight by facebook and other assets responsible.|
|Value||Independent as it has
nothing to do with
|The value shall fluctuate due
to its stable coin like operations being tied to leading financial assets.
|Supply chain||Maximum 21 million bitcoins can run at any time thanks to its deflationary nature.||Libra association controls the entire development, supply as based on demand.|
|Nature of Blockchain||Permissionless. It can be operated at one’s discretion.||Requires prior approval as
libra is a permissioned
Libra and its future aspects
Facebook’s cryptocurrency libra aims to clear the confusion around crypto-currency. Libra aims to create a transparent environment but maintain the security of crypto-currency. This composition makes libra less of a cryptocurrency and more of a stablecoin which otherwise shall function with the security features of cryptocurrency owned and controlled by centralized entity.