Read Facebook encryption stable coin Libra

On the afternoon of June 18, Beijing time, the official website of Libra, the global digital cryptocurrency of Facebook, was officially launched, and the white paper on Libra stable currency has also been released. The emergence of Libra stable currencies will affect billions of people as a simple global monetary and financial infrastructure, according to officials.

At present, 1.7 billion people in the world do not have bank accounts, accounting for 31 per cent of the world's total population. In the traditional financial sector, cross-border transfers are cumbersome and take three to five working days to complete.

At present, 1.7 billion people in the world do not have bank accounts, accounting for 31 per cent of the world's total population. In the traditional financial sector, cross-border transfers are cumbersome and take three to five working days to complete.

And because of the use of cash, the United States is robbed of $40 billion a year in cash. These people who do not have bank accounts pay more than $4 a month to participate in social finance.

Original title: "interpretation of Facebook encryption stable currency Libra, is enough to read this article." author: block rhythm 0x2

Original title: "interpretation of Facebook encryption stable currency Libra, is enough to read this article."Author: block rhythm 0x2

The emergence of Libra stable currency can enable everyone to participate in the financial world. It has the functions of both blockchain finance and traditional finance, such as value stability, rapid trading, expandability and security.

This time Facebook redefined "money" and changed the global economy.

This time Facebook redefined "money" and changed the global economy.

With the official release of the Facebook stable currency Libra White Paper, all previous rumors and rumors have been broken one by one. As an accessory to the blockchain, what exactly is Facebook's Libra stable currency? What kind of responsibility will it shoulder? Block rhythm BlockBeats will give you a comprehensive introduction to this number, which can flow freely around the world.

一文读懂 Facebook 加密稳定币 Libra

一文读懂 Facebook 加密稳定币 Libra

What is Facebook Libra?

Libra is a stable currency, which is a classification of encrypted currency in the digital cryptocurrency industry.

What is a stable currency? For readers who are not familiar with the digital cryptocurrency industry, you may not understand this concept, and you can think of it as a value-locking points system. Blockchain is equivalent to an untampered and indestructible system on which an integral can be issued and the integral can be traded. Stable currency is such a kind of "integral", its value is stable.

Take the Libra Blockchain blockchain, for example, in this blockchain system, a Libra integral is equal to $1, and the price is stable. If you have 10 Libra, in your account, that means you have $10 in hand and you can spend that money where you accept Libra. You can also pay for Libra, or trade Libra for money. According to the Libra White Paper, the creation of Libra, which can only be purchased through legal tender at 1:1, will also be transferred to reserves. The size of the reserves determines the real value of Libra, which may fluctuate, but is small.

According to the white paper, Libra, which runs on Libra Blockchain, is a goal of becoming a global financial infrastructure that can be extended to billions of accounts to support high transaction throughput. In other words, the blockchain has enough capacity to support the trading volume of billions of people around the world.

What can it do with it?

Before Facebook issued coins, there were many influential stable coins in the digital encrypted money market, including USDT, GUSD, PAX and so on. These stable coins are mainly used for gold entry and risk aversion in the digital encrypted money market, that is, if someone wants to speculate in coins, they can spend money to buy stable coins and then buy and sell other digital encrypted currencies in the market, such as bitcoin. In fact, the main goal of stabilizing currency is global payment, but this function is rarely used because of disorderly markets.

However, from the list of partners published by Facebook, we can see the summary use of this stable currency: payment.

Pay.

Facebook has just released the stable currency, called Libra, which is actually managed by an organization called the Libra Association (Libra Association. The organization was launched by Facebook and run by dozens of institutions. Previously, according to participants familiar with the project, organizations and companies that want to join the Libra blockchain will have to pay Facebook a membership fee of $10 million, after which they can run nodes on the blockchain to gain access to data viewing and writing. The list of 28 partners has been announced and will increase to 100 in the future. Facebook alone will earn $1 billion, equivalent to $1 billion in financing for the Libra project.

Organizations and companies that want to join the Libra blockchain will have to pay Facebook a membership fee of $10 million, and then run nodes on the blockchain to gain access to data viewing and writing. The list of 28 partners has been announced and will increase to 100 in the future. Facebook alone will earn $1 billion, equivalent to $1 billion in financing for the Libra project.

According to Libra's white paper, Libra Association, which gives priority to association members, encourages members to take the lead in using Libra to pay in their own ecology, and founding members also need to work hard to innovate in technology so that Libra can be used in compliance and on a large scale. The, Libra Association will also encourage exchanges to trade them on the shelves, but only on compliant exchanges.

According to the segmentation of these institutions by TheBlock, block rhythm BlockBeats found that it can be divided into investment institutions, blockchain, social media, communications companies, e-commerce, shared travel, non-profit organizations, music, travel, payment and other fields. These industries have high expectations and participation in digital cryptocurrency and related payment businesses, and they have to pay a membership fee of $10 million to participate in the Facebook Libra program. For every $10 million, there will be one vote on the board of directors, and only one vote or 1 per cent of the total number of votes for a single founding member. This can effectively prevent consortia from monopolizing.

Block rhythm BlockBeats found that it can be divided into investment institutions, block chain, social media, communications companies, e-commerce, shared travel, non-profit organizations, music, travel, payment and other fields. These industries have high expectations and participation in digital cryptocurrency and related payment businesses, and they have to pay a membership fee of $10 million to participate in the Facebook Libra program. For every $10 million, there will be one vote on the board of directors, and only one vote or 1 per cent of the total number of votes for a single founding member. This can effectively prevent consortia from monopolizing.

一文读懂 Facebook 加密稳定币 Libra

一文读懂 Facebook 加密稳定币 Libra

In these 29 cooperative institutions, we have seen the figure of Uber, eBay, PayPal and other Internet companies, as well as the logo of Mastercard, VISA, Andreessen Horowitz, USV and other established financial institutions. In the e-commerce industry, the world-famous ecommerce platform eBay, Argentine ecommerce website Mercado Pago, online luxury goods website Farfetch; also have some well-known investment institutions, such as Andreessen Horowitz fund founded by Apple co-founder Marc Andreessen, Twitter and Coinbase investor Union Square Ventures, etc. Of course, there are also block chain companies that can provide technical support for Libra Blockchain, such as Coinbase, BisonTrails, Xapo and so on. Payment companies, Mastercard, Visa, Stripe, Paypal and other companies are involved, they will become the main payment participants outside the Facebook ecology; Uber, Lyft as the second leading force in the shared ecology and mobile Internet, is also a participant; in addition, Vodafone, Iliad and other mobile communication operators have also joined Libra Blockchain.

As a result, the block rhythm BlockBeats can come to the conclusion that users can buy Libra stable coins directly and spend them through channels such as Facebook or Paypal, which can be used for shopping in eBay, can be invested, can be charged for phone calls, or can be used to pay for taxi rides.

Users can buy Libra coins directly and spend them through channels such as Facebook or Paypal, which can be used to shop on eBay, invest, charge for phone calls, or pay for taxi rides.

Looking at this, do you think this Libra is just like that, the level is average? If you really think so, you're wrong. This stable currency has the potential to completely change the current pattern of the Internet.

Prior to the release of the Facebook Libra Blockchain white paper, there was media speculation that the Facebook Libra stable currency would be used mainly for the payment functions of Facebook's Messenger, WhatsApp and Instagram. As early as December 2018, Bloomberg revealed that Facebook was testing the payment feature in WhatsApp. After the white paper was released on the afternoon of June 18, we can see that payment is the main feature of Libra. Is the handling fee soft?

一文读懂 Facebook 加密稳定币 LibraIs the handling fee soft?

The emergence of Facebook Libra will directly promote the strategy of Facebook, which will have a great influence on the profit model and the global digital currency. Meng Yan gave us a lot of inspiration in last weekend's WeChat article "Facebook Digital currency: Origin, meaning and impact."

As we can see above, Facebook can make a lot of money by joining partners, such as billions of dollars. But this is only short-term income, Facebook can actually charge a transfer fee similar to a credit card or pay a handling fee to generate a steady stream of huge revenue.

Meng Yan mentioned that, Facebook Libra could carry $50 to $80 trillion in transactions in the future, and if a handling fee of 2/1000 per fee is charged, the annual handling fee revenue of at least $100 billion will exceed the current full-year revenue of Facebook. If Facebook spurred spending a little, or raised the percentage of fees, that figure would exceed $200 billion.

Facebook Libra is likely to carry $50 trillion to $80 trillion in trading volume in the future, ifThere is a 2/1000 handling fee for each fee, so at least a yearThe $100 billion fee revenue will exceed Facebook's current full-year revenue. If Facebook spurred spending a little, or raised the percentage of fees, that figure would exceed $200 billion.

The cross-border payment market has a market of US $125 trillion a year, the price difference of exchange and the handling fees paid by cross-border credit cards, often more than 5 per cent of the handling fees and service fees. It hurts people who go abroad or do international trade, and because digital cryptocurrencies are not as affected by policies and regions as traditional digital currencies, as long as there is Internet access, the blockchain can be connected, you can transfer money through the blockchain. This gives the Facebook Libra the characteristics of a global currency. Whether it is cross-border transfer, or cross-border payment, can be easily achieved. Meng Yan believes that as long as Facebook reduces the cross-border payment fee by an order of magnitude (which can be easily achieved in the blockchain area), it can kill the traditional exchange business.

As long as Facebook reduces the cross-border payment fee by an order of magnitude (which can be easily achieved in the blockchain area), it can kill the traditional foreign exchange business.

In addition, we have seen that Libra's partner list also includes a number of investment institutions, which makes it possible for Facebook Libra to stabilize the currency as a financial instrument. Facebook can also earn more revenue and fees from financial activities.

Control of regional economy

During the Cold War, the United States established a global monetary system with the dollar as the order. Today, as long as it involves international business, it basically has to be settled in US dollars. However, with several recessions and crises, the global monetary status of the dollar is declining step by step. This has a lot to do with the fact that the dollar is a currency issued by the US government, which can print money at will and does not care what the other participants in the monetary system think. For every dollar note issued by the United States, the foreign exchange reserves of other countries depreciate as a result.

The emergence of blockchain technology has solved the problem of spamming and oversending. In blockchain systems, every digital cryptocurrency issued (also known as Token or Coin),) is recorded on the blockchain. If Libra can be used globally, it must solve the problem that Facebook cannot release new Libra at will. For each Libra, issued by Facebook, it needs to deposit $1 or its equivalent in other national or regional currencies in its own bank.

In blockchain systems, every digital cryptocurrency issued (also known as Token or Coin),) is recorded on the blockchain. If Libra can be used globally, it must solve the problem that Facebook cannot release new Libra at will. For each Libra, issued by Facebook, it needs to deposit $1 or its equivalent in other national or regional currencies in its own bank.

Meng Yan said that the Libra will anchor a basket of currencies, can be a variety of legal coins into gold, but also can be cashed in a variety of legal coins. After a few years of stable operation of Facebook Libra Blockchain, 2.6 billion Facebook ecological users will experience the convenience that Libra brings to life, when the e-commerce, games, services and financial digital ecology attached to Facebook will change completely, and all services will no longer be denominated in US dollars or traditional currencies, but will be priced in Libra.

When global Facebook users build trust in the local currency of Libra, people believe that Libra is equal to 1 dollar or 6.90 yuan, when people no longer need to convert Libra into legal currency, and there is no longer a scene supported by third-party assets. All passes are Libra. Facebook can undertake the acceptance of services, finance, assets, etc., priced by Libra.

Simply put, once 2.6 billion users accept Facebook Libra, Facebook will become the central bank of the country where the 2.6 billion people live in a few years, infiltrating the economy. It will also make a difference in areas such as taxation, regulation and crime prevention, as the flow of money will also be transparent and open (anonymously). When Libra works with the government, we will see its greater political and economic influence.

一文读懂 Facebook 加密稳定币 Libra

So, can I fire Libra?

The answer is difficult, but it can be used.

Unlike other blockchain and blockchain token systems, Facebook has worked hard on technology and regulation, making it difficult for ordinary investors to find opportunities to make money.

The emergence of Facebook Libra stable currency has caused a lot of speculation and controversy, the main argument is crypto currency compliance and privacy protection. As the block rhythm BlockBeats mentioned above, these high-quality features of the, Facebook Libra stable currency are being bound by traditional laws and regulations, making it difficult to perform its full functions.

As early as May 2018, Facebook began research and development of digital cryptocurrency. At that time, it was announced in the media that David Marcus, a former board member of Coinbase, had joined the Facebook team and led the development of Facebook's blockchain. Before David began to study blockchain, Morgan Beller of the Facebook development team was also responsible for the development of blockchain.

According to foreign media TheBlock, it was from this time that Facebook began to invest heavily in blockchain projects and began to think about how to integrate stable currencies into the ecology of Facebook.

In May, Facebook registered Libra Network LLC in Geneva. According to official Swiss registration documents, this is a blockchain technology development company. Soon BBC picked up more news that Facebook would issue Libra stable coins in the first quarter of 2020 and that it would begin testing Libra stable currencies in more than a dozen countries in the second half of 2019. According to the Libra white paper, Libra will be released in the first half of 2020.

The Wall Street Journal has previously reported that Facebook is in talks with the Commodity Futures Trading Commission to issue coins in the United States and sell them to the general public, but Facebook has not filed a formal document. The head of the Commodity Futures Trading Commission said he was more concerned that the Facebook issue might not be within the jurisdiction of the department.

The Financial Times reported that Facebook was working with Ed Bowles, a lobbyist with Standard Chartered Bank, who was helping Facebook promote compliance with digital cryptocurrencies at the policy level.

Coupled with the fact that the seigniorage of Libra is still in the hands of Facebook or Libra Association, it is up to the association to decide how much to issue and how much the price will fluctuate. Ordinary investors can not control the market liquidity of Libra, and naturally can not affect its price. The only opportunity for ordinary investors to benefit may be to grab some dividends by embracing the digital encryption world and buying shares in companies listed as Libra Association partners.

Perhaps in the future will be the agent between users and users into the means, Zhang San to Li Si 10 US dollars, Li Si to Zhang San turn 9 Libra, Li Si to earn a handling fee. This is also a way for users who do not have a bank card and do not have authentication. Of course, you can also use it as a safe haven currency on some compliance exchanges.

一文读懂 Facebook 加密稳定币 Libra

一文读懂 Facebook 加密稳定币 Libra

Does it have anything to do with us in China?

Some people think that Libra is something similar to Q coins issued by Facebook, which can actually be understood in this way. But Libra is more transparent and larger than Q coins. In fact, block rhythm BlockBeats is more willing to interpret it as a foreign Alipay balance, users pay cash into Facebook, in exchange for Libra, and then pay under the big tree of Facebook.

For Messenger, Instagram, WhatsApp under Facebook, this is a good thing. They are finally able to transfer payments in their lives faster and more easily on their mobile phones, a feature that has been popular in China for years.

So will Tencent or Alibaba issue such digital stable coins? The answer is no, because the central bank is still at the stage of studying digital money.

For the Facebook Libra project, Chinese users do not have to envy, in fact, we should be more worried from some angles, because the game between the global economic powers, will be carried out in the form of digital encrypted currency. We can see this from Facebook testing in just a few dozen countries.

Besides, it is very difficult for Facebook to enter China, not to mention the digital encrypted currency it issues, but Libra has an official Chinese website, which may come in one day. Let's make good use of our Alipay and WeChat to see foreign netizens get out of trouble.

Source link: mp.weixin.qq.com

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