6 highlights to see first! Facebook cryptocurrency project Libra white paper interpretation

Today, social media giant Facebook has released a high-profile Libra Stabilization Project white paper.

Simply put, Libra's mission is to create a simple, borderless currency and financial infrastructure that serves billions of people.

This new low-volatility cryptocurrency and smart contract platform program opens up new opportunities for responsible financial services innovation.

Facebook believes that the existing blockchain system lacks scalability and cryptocurrency is volatile, so they have not yet been widely adopted. Facebook believes that working with the financial sector (including regulators and experts across industries) to collaborate and innovate is the only way to ensure a sustainable, secure and credible support framework for Libra's new system.

Next, Babbitt will refine the six highlights of the Libra white paper for you:

1. Libra currency is linked to a basket of bank deposits and short-term government bonds

Libra currency is based on the “Libra blockchain”. It is designed to serve people around the world, so the software that implements the Libra blockchain is open source. This currency unit is called “Libra.” Unlike most cryptocurrencies, Libra is fully supported by real asset reserves. For each newly created Libra cryptocurrency, there is a basket of bank deposits and short-term government bonds of relative value in the Libra Reserve to build trust in its intrinsic value.

To read an overview of Libra and its reserves, check out here .

2. The Libra Association is an independent, not-for-profit membership organization.

The Libra Association is an independent, not-for-profit membership organization based in Geneva, Switzerland. The association aims to coordinate and provide a management framework for networks and asset reserves, and to lead funds that generate social impact to support inclusive finance.

Members of the Libra Association will include a variety of businesses, non-profit organizations, multilateral organizations and academic institutions located in different geographic regions.

These include:

Payment industry: Mastercard, PayPal, PayU (Naspers' fintech arm), Stripe, Visa

Technology and Trading Platform: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, SpotifyAB, Uber Technologies, Inc.

Telecommunications: Iliad, Vodafone Group

Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited

Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures

Non-profit organizations, multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women's WorldBanking According to official estimates, the number of founding members of the Libra Association can reach around 100 by the time of the first half of 2020.

Initially, the Libra blockchain only granted voting rights to founding members who (1) met a predefined set of founding membership criteria, and (2) had purchased Libra investment tokens (investing at least $10 million in the network) ).

Using the founding membership criteria ensures that the founding member is an organization with a established reputation, making it less likely to act maliciously.

Libra's investment token, which represents expectations of the reserve interest return, further motivates the verifier to keep the system running. Since the assets in the reserve are low-risk and low-yielding, the excess returns of early investors will only be realized when the network is successful and the reserve size is greatly increased.

According to the rules, if a company wants to be a founding member, it must meet at least two of the following criteria:

1. Market value/receivable balance:

Metrics: Market capitalization exceeds $1 billion or receivable balances exceed $500 million.

2. Scale:

Metrics: Serving more than 20 million people in multiple countries each year.

3. Brand sustainability:

Metrics: Ranked among the top 100 industry leaders by third-party industry associations or media companies. The list of parts that the association refers to when evaluating founder applicants includes Interbrand's “Top 100 Global Brands”, Fortune Magazine's “Top 500”, Standard & Poor's Global 1200 Index, FTSE Eurotop 300 Index and other regions that have selected well-known brands. List of countries.

Cryptographic investors:

  1. Managed assets (AUM) exceed $1 billion.

Blockchain infrastructure companies (all of the following criteria must be met):

  1. Has been in operation for more than 12 months.
  2. Adopt an enterprise-wide security, privacy, and infrastructure operating model that is secured by modern policies and processes (public disclosure of information through security audits or penetration testing reports).
  3. Host or maintain at least $100 million in assets for customers.

In addition, Facebook created a regulated subsidiary, Calibra, to ensure that social and financial data are separated from each other and that they build and operate services on the Libra network.

Once the Libra Network is released, Facebook and its affiliates will have the same rights and assume the same obligations and financial responsibilities as other founders. As a member of many members, Facebook assumes the same responsibilities as other members in the management of the association.

3. Libra is currently a licensed blockchain, with the ultimate goal of becoming a non-licensed network through the PoS mechanism.

Blockchains are divided into "licensed blockchains" and "non-licensed blockchains", which are determined based on whether the entity can access the blockchain platform as a verifier node.

In this sense, Libra will start in the form of a licensed blockchain . To ensure that Libra is truly open and always operating in the best interests of the user, Facebook's ultimate goal is to make the Libra network an unlicensed network. To do this, Libra plans to gradually transition to a Proof of Entitlement (PoS).

4. Three technical decisions in the Libra blockchain

P5

(Libra Protocol Overview)

  1. Design and use the Move programming language.
  2. Use the Byzantine Fault Tolerance (BFT) consensus mechanism.
  3. Adoption and iteration to improve the widely used blockchain data structure.

"Move" is a new programming language for implementing custom trading logic and "smart contracts" in the Libra blockchain.

The Libra blockchain uses a BFT mechanism based on the LibraBFT consensus protocol to achieve agreement between all certifier nodes on the transactions to be executed and their execution order. According to the technical white paper, the Libra protocol initially supports 1000 TPS with a block interval of 10 seconds .

In order to secure the stored transaction data, the data in the Libra blockchain is protected by the Merkel tree, a data structure that has been widely used in other blockchains to detect existing data. Any changes. Different from the previous blockchain, the blockchain is regarded as a collection of trading blocks. The Libra blockchain is a single data structure that records transaction history and status for a long time.

The Libra blockchain follows anonymity and allows users to hold one or more addresses that are not related to their true identity.

For more information, read the technical paper on the Libra Blockchain.

5. What is Libra's next step?

Today, Facebook released the Libra white paper to outline the goals of the project and launched libra.org as the homepage for the association and all Libra affairs. The site will continue to release updates in the coming months. In addition, Facebook also opened up the source code of the Libra blockchain and launched Libra's initial test network for developers to try and develop on this basis.

The scheduled targeted release date is the first half of 2020, and before that, Facebook still has a lot of work to do.

6. How to participate in the Libra project?

If you are a researcher or protocol developer, you can preview the Libra Test Network (released under the Apache 2.0 open source license) and accompanying documentation in advance.

If you want to learn about the Libra Association, please go here to see the details.

If your organization is interested in becoming a founding member or applying to donate a social impact grant to the Libra Association, please go here to see the details.

In the coming months, the Libra Association will work with the global community and continue to work with decision makers around the world to advance this mission.

Conclusion:

Libra's goal is to create a stable currency based on a secure and stable open source blockchain backed by real asset reserves and managed by an independent association.

A full project white paper can be found at: https://www.chainnode.com/doc/3630