CRYPTOCURRENCY

LIBRA


Libra is a permissioned blockchain digital currency proposed by the American social media company Facebook. The project, currency and transactions are to be managed and cryptographically entrusted to the Libra Association, a membership organization founded by Facebook's subsidiary Calibra and 27 others across payment, technology, telecommunication, online marketplace, venture capital and nonprofits.

Confirmation that Facebook intended a cryptocurrency first emerged in May 2019.At this time it was known as "GlobalCoin" or "Facebook Coin".Libra was formally announced on June 18, 2019.A first version is projected to be released in 2020.

BITCOIN

Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and was released as open-source software in 2009. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.^[17] Research produced by University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

DIFFERENCE BETWEEN LIBRA AND BITCOIN

The plan is for the Libra token to be backed by financial assets such as a basket of currencies and US Treasury Security in an attempt to avoid volatility Facebook has announced that each of the partners will inject an initial US$10 million, so Libra has full as assets backing on the day it opens.

Libra service partners, within the Libra Association, will create new Libra currency units based on demand. Libra currency units will be retired as they are redeemed for conventional currency.

Initial reconciliation of transactions will be performed at each service partner, and the blockchain's distributed ledgers will be used for reconciliation between service partners. The intent is to help prevent everyone but members of the Libra Association from trying to extract and analyze data from the distributed ledger.

In contrast to cryptocurrencies such as bitcoin which use permissionless blockchain. Libra is not decentralized, relying on trust in the Libra Association as "a de facto central bank".

The libra will not reply on cryptocurrency mining rather the Libra Association would release as much Libra as needed depending upon the demand of the market and each unit would be retired once they are converted to conventional currencies. Unlike many of the other many cryptocurrencies based on permissionless blockchain technology, Libra will be the permissioned blockchain and every transaction would only be able to be processed through the members of the Libra Association; however, as per the present information out there, Facebook has a plan to go to permissionless blockchain pattern like that of the Bitcoin or others in the next five years time.