Libra has become the new digital cryptocurrency of the moment, owned by Facebook, based on Blockchain, born with the support of more than one hundred financial companies and with its own digital wallet. In this way Facebook already has its own digital currency to make payments through the internet.
This new digital cryptocurrency is called Libra which will be the base, but the digital currency on which the rest of the payments will be based, including those of Facebook will be called Calibra, which will become a digital wallet that will allow storing and making use of the new digital currency Libra. It means that it will be a payment platform for WhatsApp, Facebook and Messenger, it will exist as an application independently on iOS and Android. This wallet will be connected to the world, which will allow you to send money quickly and will be based on this new digital currency.
How does Calibra work?
It is the new Facebook payment platform that is based on Libra. It has become an immense project, which comes as a subsidiary of Facebook and will operate completely independently. It will be the visible face of Facebook to be able to use Libra, currency that was devised to not repeat the same problems that the rest of the cryptocurrencies have fallen.
What is Libra?
It is an independent and non-profit association, its headquarters are in Switzerland. Libra is an open-source digital currency based on Blockchain, similar to other cryptocurrencies such as Bitcoin. To deal with volatility, Libra is fully backed by the Libra Reserve, which consists of a collection of coins and other assets that is used as collateral for each Libra that is created. Libra is the digital currency and Calibra is the Facebook wallet. In the previous article entitled 7 myths about Bitcoin, we mentioned some interesting details about how Bitcoin works and some things that are said about this cryptocurrency that are not true.
Advantages and disadvantages of Bitcoin
Its main advantage is that it is considered the largest currency in the market and although its price fluctuates, it is still the least volatile than other cryptocurrencies. Its disadvantage is because, due to its high popularity, the number of transactions has skyrocketed and this has saturated the network.
Another advantage is due to the confidence that the market has in Bitcoin, it provides security. Another disadvantage is due to limitations, since transactions are grouped into blocks that operate every 10 minutes, while other cryptocurrencies are faster. Another notable disadvantage of Bitcoin is that the use of mining requires a lot of electricity, which brings environmental problems.
Advantages and disadvantages of Libra
As it is a cryptocurrency that will enter into full force in the year 2020, the scope and achievements expected of it are being fully studied. However, we can know some advantages that Libra offers us. Its main advantage is that it has great support from large companies and payment platforms, so it will not have major problems for its use. An advantage in terms of mobility is that for anyone who has a basic Smartphone and has connectivity through data, can access Libra. Another advantage refers to stability, due to the great support of the Reserve created for this purpose and to maintain its stable price.
For now, Libra will wait for a period of about 5 years to turn it into a cryptocurrency with other consensus systems, meaning that the more nodes added to the network, the transaction management will be slower. One possible disadvantage is the fact that there are many companies that support it, so that at least two thirds of the members must reach an agreement to make changes.
Another disadvantage refers to privacy and anonymity, as for the use of cryptocurrency no user identification is requested, however, the same does not happen with the digital wallet. It means, the cryptocurrency itself does not need identification, but using it through calibra does need identification.
What do you think about this topic? Did you know these disadvantages of Libra?
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