In June 2019, Facebook announced for the first time, that it would be going into Cryptocurency and the blockchain ecosystem by building a permissioned blockchain Network called "Libra".
This was 6 months after it had been rumoured that Facebook was secretly establishing a blockchain Division, headed by David Marcus, the same person who oversaw the successful launch of Facebook Messenger. It was stated that this currency was going to be a stable coin, focused on the Indian population. Libra announcement came with much heralded anticipation all over the world that even though it is set to Launch by 2020, Many known global brands like PayPal, and what joined the league of amassed partners and supporters of the Project.
Libra is a simple global currency and financial system empowering billions of people. Features of Libra includes
Secure and Scalable Ecosystem
Stable coin backed by reserved assets governed by the Independent Libra Association
Utilized LibraBFT consensus mechanism
Smart Contract done on "More" programming language
Libra is a permissioned blockchain project and is aimed at moving toward the permission less ecosystem. The LIbra ecosystem is genuinely unique and different from all other block chain networks as it utilizes the LibraBFT protocol.
The Libra Association
The Libra Association is designed to be the independent Governing body of the Libra ecosystem.
"To facilitate the operation of the Libra Blockchain, to coordinate the agreement among it's shareholders - the network validator nodes - in their pursuit to promote, develop and expand the network, and to manage the reserve"
The full list of founding members of the Libra Association includes the following, it is suggested that Facebook charged around $10Million for each of these Members to become node managers. The list includes:
Booking Holdings Inc.
Iliad's SA's Free
MercadoLibre Inc's Mercado Pago
Jasper's Ltd PayU
Spotify Technology SA
Union Square Ventures
Creative Destruction Lab
Women's World Banking
The advent of Libra have been met with different reactions, especially the United State Congress. It would be safe to assume that there are two schools of thought on this matter: those in support and the Non-supporters.
The first school of thought believes this would drive for global adoption for cryptocurrency and blockchain technology, while the second believes that Facebook Libra Project is not a decentralized blockchain project, with several centralized activities within the ecosystem.
Who Opted Out First of Facebook’s Libra Association.
News have it that several Founding Members of Libra Governing Association are beginning to pull out of the project with PayPal being the first, it is reported that EBay, Stripe, Visa and Mastercard have also pulled out of the project.
Paypal became the first to pullout of the Libra association on October 4 2019 and followed by Visa, MasterCard, Stripe and eBay. The last one happened on October 11 2019 and it seems to be that the disassociation of these entities is due to the uncertainties in the regulatory framework based on the fact that fact that the original whitepaper did not indicate how to tackle the challenges of regulation. It is believed that in the next meeting of the association scheduled to take place in Geneva next week, this will be addressed.
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