To foster a digital platform for transactions, to empower the people who don’t have access to basic financial infrastructure, and to make a global currency that can be accessed by everyone across the globe, considering all these the renowned social media giant Facebook launched their new cryptocurrency called LIBRA.
Libra has the capability to improve the financial services offered to people, the idea of making Libra is to create a global currency that can be accessed from any part of the world just with a smartphone and data connection.
Transactions with Libra are swift and secure, the charges levied on transactions are also very minimal. Considering security as an important factor Libra is developed using blockchain technology.
Blockchain is a delineated, programmable database built to encourage more constant cryptocurrency that possesses the ability to serve as a medium of financial transactions for millions of people across the globe.
To maintain the value of Libra stable, the Libra association made a reserve where each Libra coin is backed by a constant liquid set of assets. This unique quality of Libra will help to grab the attention of people.
The purchase of Libra for fiat and transfer of fiat to reserve should be same as to produce a new Libra. This results in the extension of reserve according to the consumer’s demand to increase Libra. The only way to generate more Libra is by purchasing more Libra for fiat and growing the reserve.
These liquid assets enter into reserve through two ways, first is from the investors and the second is from the users of Libra.
To look after all these processions an association is formed and it is called as The Libra Association. This organization is self-reliant and works for the empowerment of unbanked people.
This association is formed by the validator nodes of the Libra network. These validator nodes consist of social impact partners, academic entities and international corporations. In future, this association is planning to include any organization that operates a validator node or claims stakes in Libra.
The major responsibility of the association is to guard and provide security to Libra Network. The Libra Blockchain is a distributed pattern that supervises both ownership of Libra and the transfer of Libra from one user to another.