What Is Facebook's Libra Cryptocurrency – The Maurice Kenny Show Ep 10

What Is Facebook's Libra Cryptocurrency – The Maurice Kenny Show Ep 10

my name is Maurice Kinney and I'm here to help you master everything blockchain so on today's episode let's talk about Facebook's Libre cryptocurrency Libre is Facebook's attempt in making a cryptocurrency on their own actual blockchain with most people hearing about it they immediately think of the alternative public blockchain based cryptocurrency known as Bitcoin the catch here is that Lieber works in actually a very different way than Bitcoin so Libre is a cryptocurrency which operates as digital money for everyone to use in the entire world Facebook's plan is for Libra is to be used by everyday people in the United States Europe China Africa and everywhere else in the future that's their actual primary source of digital money to do everything from pay your bills to buy coffee to purchase everything else in your entire life so being that libras actually known as what's called a stable coin here's how labour works for the everyday person like you listening to this right now as an example let's say you have 10 US dollars on your debit card you can then convert those ten dollars into as an example 10 lira coins then those Libra coins can be stored in a virtual Wallet app that would live on your smartphone just like any other app basically so the way to look at it is that instead of your money being stored transferred and kept secured by a bank quote-unquote now the technology company will be the one acting as your bank since face because they're known to have some serious security and privacy issues they actually created a separate company called calibra to actually handle everything around Libra so the structure for now is that Facebook is actually the holding company while calibra is actually the separate entity that rolls up to Facebook what Facebook announced is that technically that means that they will actually keep the user's Facebook data away from the financial data that with inside of Calibra which would also mean that they quote-unquote should not be able to target you more with Facebook Ads based on what you actually bought so if you wanted to buy something transfer money or store all of your life savings then everything could potentially actually happen through Calibra instead of you're a bank that you're using now but at any time if you ever get worried about the safety of your digital money of Libra then you can at any time of course convert back to your original currency from a security perspective since it's using a few other principles behind blockchain technology it's using public and private keys when you do transactions to buy whatever you want all that basically means is that if you buy say a coffee as an example at Starbucks which are Libra coins your name will actually not be attached to any of those transactions on the blockchain instead those transactions themselves will be logged onto the blockchain the catch is that before you use your Libra coins as an everyday currency by downloading the independent app or the soon to be built on functionality inside of whatsapp or a facebook Messenger you actually need to first identify who you are which your photo ID driver's license or something along that nature it's proof of your identity technically since Libra coins actually a stable coin it will be actually matching whatever value that fiat currency is that you converted it from in order to keep that stable price that you can use for everyday purchases Bitcoin was one of the original blockchain based digital currencies but since as of now it's not stable from a value perspective just for now this is one of the reasons why Facebook's actually throwing their hat in the ring for this cryptocurrency the way Calibra ensures to keep your Libra money actually safe is to use their own version of a consensus mechanism basically a consensus mechanism it's what's typically used to ensure transactions by everyday users are actually valid to be added to the blockchain Libra is not like the typical consistence mechanism most people are familiar with it's not the typical say proof of work by Bitcoin or the soon-to-be proof of stake by a theory of and a few other block chains but instead it will use a council of partnering companies that means that Calibra has a few dozen partnering companies that actually paid millions and millions of dollars to be the ones to actually validate those transactions so they can be added to the blockchain along with oversee with voting rights to say we're the future of Libra should actually go next since Libra comes out early 2020 if it's actually successful it will not only provide an alternate Bank with reduced fees to people in the first world countries but it will also provide a bank to anyone in the entire world that has not been fortunate enough to have a stable currency that they can use right now in this moment in time millions do not have access to a bank so that alone is one use case for this stable cryptocurrency which would make it easier for many people in poverty or tough economical situations to obtain what they need to survive on a day to day basis Libra may not be this full decentralized public based blockchain crypto currency like Bitcoin that many of the people like myself and the blockchain community want to happen in the future as far as for day-to-day payments but it is a step in the right direction for massive global adoption if Bitcoin were to become more stable which it will in the future from a value perspective we still have millions and millions of people that have not even heard about the value from using Bitcoin they don't understand Bitcoin let alone blockchain as a whole or even trust it as a whole since there's no actual company behind it backing it so yes this may not be as secure as the Bitcoin blockchain but Facebook creating Calibra so that millions all around the world will be actually exposed to the cryptocurrency known as Libre is in general a step in the right direction to educate the entire market as a whole on cryptocurrencies and blockchain it's difficult for everyday people to jump in from using a bank on a daily basis that they know and trust to not using a bank at all and say using Bitcoin but for an everyday person is easier prison to jump from using a bank that they know and trust to using a similar type of Bank but from a technology company that's just simply replicating a simpler version of a bank to one day using Bitcoin as a whole that's why in the long run this is good for Bitcoin and other cryptocurrencies even from a simple awareness perspective plus the fact that the value of Bitcoin and other cryptocurrencies have gone up significantly as a byproduct since Facebook's announcement that means that people are interested in what this can do but they're looking for alternatives so maybe Facebook's not the right company for this but that's up to for the users to decide so what do you think leave a comment down in the comment section below letting me know if you think Facebook is actually the right company to do this or do you think a different company should do this let me know down there in the comment section so if you learned something from this video go ahead and click the subscribe button below and leave me a like and if you have any questions or suggestions for the next video leave a comment below so I can help you master everything blockchain


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