Since Facebook and it’s partners revealed it’s Libra, the new cryptocurrency, questions about Libra Mining keep being raised.
The main objective behind this latest payment system is to produce a new global system.
Libra has actually created a base for a fresh world of financial services.
The Libra payment system is indeed built on a native blockchain, the Libra Blockchain.
It is a more secure, more scalable, and more reliable one.
But what exactly is Libra, and how does this new payment system work?
Here are some of the basics that you must know about the new Facebook’s innovative cryptocurrency, Libra.
The Libra Mission– An effortless global payment system and financial infrastructure that authorizes billions of people.
Libra Mining – Is There Any Way To Create Libra?
No, there is no way to produce Libra as one can do with Bitcoin.
Therefore, Libra mining is actually not possible.
In other words, there is actually no “Libra mining”.
Libra is more like a new coin.
You can just buy it and use it to buy other purchases.
Comparing Libra with Bitcoin:
With Bitcoin, you can invest a little but withdraw a lot;
However, with Libra you get a cryptocurrency that would not fall in value or rise rapidly .
Unlike Bitcoin, Libra is centralized and highly operated by the Libra validator nodes.
To maintain accuracy and avoid double-spend attacks, the Libra Validator Nodes uses a Byzantine fault tolerance (BFT).
Specifically, the Libra protocol uses a variant of HotStuff consensus protocol, called the LibraBFT..
How Does Libra Work?
Every time an individual buys Libra, that currency will be deposited into a bank account.
Libra will remain intact, so that the worth of every dollar or euro of Libra will get backed by dollars or euro in the bank.
It is because the Libra’s bank assets will generate interest that can be used to pay back the foremost investor of cryptocurrency.
Creating a Libra payment system does not require anything like the mining process of Bitcoin, which has obsessed a huge amount of electricity and made environmental critics concerned.
The individuals can buy Libra by straightforwardly transferring money from a debit card or bank account. Once companies own Libra, they become able to send it to other people or businesses with a Libra wallet anywhere across the globe.
How Can Users Use Libra?
Libra is set up so that no just Facebook, but several other companies can accept the coin and assembles wallets that will permit people to grasp and spend it. It’s quite similar to the way that various companies have created wallets and trades for Bitcoin.
- Each user of Libra has one or more accounts through which they can perform transactions in which they send Libras to another user or receives.
- Libra wallet is a software that you need to install on your phones to access and perform Libra transactions.
- Facebook has set up a subsidiary named, Calibra, to develop a custodial Libra wallet for the users. This wallet carries your private keys to unlock the account and permit you to send and receive Libras.
- Calibra will develop the functionality of Libra Wallet for Whatsapp and Facebook messenger so that you don’t have to install the different apps for Calibra.
Apart from it, Facebook expects its partners like Uber to take Libra as payment for online subscriptions, car rides, and many more.
More about Facebook Libra announcement here