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Cryptocurrency

7 key takeaways from Facebook’s Cryptocurrency, Libra

In this post, we’ll be covering the 7 important things you need to know about Facebook’s “revolutionary” currency, Libra.

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Libra, Paypal drops out of partnership with Facebook’s Libra 

The release of the white paper about Facebook’s digital currency resulted in extensive media coverage, ensuring information about it was widely accessible. In this post, we’ll be covering the 7 important things you need to know about Facebook’s “revolutionary” currency, Libra.

It Is a Stable coin

A stable coin is a type of cryptocurrency that is tethered to other stores of value like gold, securities, fiat money or other cryptocurrencies in order to reduce volatility. When launched, Libra will be a stable coin because its value will be based on a group of existing currencies including the Euro, British Pound Sterling, Japanese Yen, and the US Dollar. It will also be pegged to a security token called Libra Investment Token.

From Permission to a Permissionless Network

On a permission-based network, Libra would be in charge of authorising those who can have access to the Libra blockchain. On the permissionless network, anyone who meets certain technical requirements can have access to the blockchain. Libra is taking this route to monitor the blockchain closely in its first few months before opening it to the public.

[READ FURTHER: How Intels decided revenue sharing formula with NPA]

It Is Built on The Libra Blockchain

The Libra token is built on the Libra blockchain. Unlike the Bitcoin and Ethereum blockchain, a new programming language has been drafted for this blockchain. The name of the programming language is Move.

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The Libra white paper also states that transactions that would be carried out on the Libra blockchain would be private transactions. Users identity would not be visible as users would only need their public and private keys to carry out transactions.

It Is Not Run by Facebook

Unlike what most people assume, Libra is not run by Facebook. Instead, it will be run by an independent body known as the Libra Association. Even though this body is an offshoot of Facebook, the white paper states that it works independently of it. Many people believe that this is a move by Facebook to remove this new finance project from the privacy controversy that Facebook is known for.

[READ THIS: How blockchain revolutionises finance & investing]

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Another fascinating thing is the white paper is not signed by Mark Zuckerberg or Facebook’s Head of Blockchain Engineering, Evan Cheng. According to the White paper Facebook would only Facebook is only a partner.

Facebook unveils Libra, a new global digital currency

It Will Operate Smart Contract

A smart contract operates pretty much like a normal contract except that it is a set of codes on the blockchain which automatically means that it is decentralized. The Ethereum blockchain was the first blockchain to enable smart contract functionality.

Backed by Star-Studded Companies

Its Founding Members as they are called, are companies that are in partnership with the Libra team on this project. Founding members participate in the responsibilities of governance, implementation and strategy.

Some of its founding members are Booking Holdings, Facebook’s Calibra, Amazon, eBay, Paypal, Mastercard, Uber, Visa, Vodafone, Coinbase, Women’s World Banking and a group of others.

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There Have Been Mixed Reactions

Reactions to the release of the Libra white paper haven’t been entirely positive. For a start, it has been hit by a host of regulatory hurdles in Europe. As there’s concern about the challenges it would pose for already established financial institutions like banks.

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Then there’s also the privacy issue. Facebook has a bag of privacy issues attached to its name which raises red flags in some quarters.

[KEEP READING: UBA launches ‘Leo’ chat banking on social media platform]


This article is in partnership with Quidax. Quidax is a European based cryptocurrency exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.

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Cryptocurrency

#EndSARS Nigerian Rights group switch to Crypto

A Nigerian rights group strongly supporting the #EndSARS campaign has highlighted why it is accepting donations in Bitcoin.

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Nigerian millennials in the past few weeks have taken to the streets in unprecedented numbers, kicking against the abuse done by a significant number of law enforcement officers, most specifically, the disbanded Special Anti-robbery Squad (SARS).

As the protest rages on, various rights groups have set up funds to provide participants, support, while they glamour for the long-overdue reforms.

Feminist Coalition, recently gave reasons why it’s now switching to crypto. The group said;

“We’re moving to only accepting donations in Bitcoin using BTC Pay. BTC Pay is a free, secure, decentralized, and censorship-resistant platform, which makes it our best option, given the past few days #EndPoliceBrutalityinNigeria. Please donate here: https://donatebtc.feministcoalition2020.com”

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The fast-rising Nigerian rights group provides logistics, aid to Nigerians pressing for Police reforms via street protests disclosed they raised about 8 bitcoins valued at over $88,0000 and other cash donations.

Why this matters

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The donations are used in providing medical and legal bills for some Nigerians arrested in recent days, and most importantly to hire private security guards in protecting them against armed gangs, who of late have tried to discredit the theme of the peaceful protests.

Another critical macro making many Nigerian millennials use crypto amid protest for reforms is basically because the #EndSARS protests in principle is decentralized. There is no known centralized authority coordinating the protest, and not forgetting, the much advantage cryptos have over fiat currencies are that they are decentralized finance assets, meaning, funds can’t be controlled, blocked or disengaged by any central authority.

Also, crypto donations are very secure, and privacy concerns kept at a minimal level, on the basis you don’t disclose your personal details when making such transfers.

Backstory

Nairametrics had earlier given vital insights on how for years, young Nigerians, mostly via social media, have called for the notorious Police unit to be disbanded and rogue elements in the force brought to justice. Despite repeated promises by the government, they have failed to heed to the demands, triggering a new wave of protests that have now spread across the country.

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Cryptocurrency

Customers’ data: Coinbase received 1,914 requests from FBI, SEC

Coinbase recently disclosed it had a significant number of requests from law enforcement agencies regarding customers’ data.

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Customers' data: Coinbase received 1,914 requests from FBI, SEC

The world’s most valuable crypto exchange, Coinbase, recently disclosed that it had a significant number of requests from law enforcement agencies in the world’s largest economy, U.S, and other parts of the globe.

In its first-ever Transparency Report, Coinbase disclosed that it currently serves about 38 million customers globally, thus it collected 1,914 requests from global law enforcement and government agencies in H1,2020 that sought to get details on customers’ details and their financial data.

READ: 3 Crypto exchanges control about 14.3% circulating BTC supply

Unsurprisingly, the United States leads the pack with 58% of such requests; others include law enforcement agencies from the United Kingdom, Germany, and France which filed for 441, 176, and 45 information requests, respectively.

READ: Over $500 million dollars worth of Bitcoins withdrawn from BitMEX

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READ: Hackers, expose crypto wallets worth $150 million at Kucoin

Why this matters: The leading American U.S crypto exchange believes that trust is optimized through transparency and honesty via releasing a Transparency Report that shares insights into how it handles legitimate government requests for some customers’ data.

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READ: NNPC releases audited financial statements, refineries record losses of N154 billion

Coinbase believes that transparency reports like this should be encouraged, in spite of the opaque reporting seen by many startups, especially in financial services. It believes that it is important, not just for crypto companies, but for fintechs and banks at large to shed light on financial data sharing practices, and contribute to the understanding of industry trends in a meaningful way.

READ: Crypto: Celo gains over 50% within a day, as Coinbase announces its listing

Insights

  • 58% of all requests come from US agencies.
  • 90% of all requests come from three jurisdictions: the U.S., UK, and Germany.
  • 16% of all U.S. requests come from state or local authorities.

READ: CBN reacts to videos, pictures of new N2,000 and N5,000 in circulation

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Cryptocurrency

Bitcoin could reach $225,000 by 2021

Morgan Creek Digital Assets’ Anthony Pompliano outlines key fundamentals that may trigger Bitcoin price action.

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Bitcoin could reach $225,000 by 2021, Gerald Cotten, Quadriga CX

Popularly known Crypto hedge fund manager and co-founder of Morgan Creek Digital Assets, Anthony Pompliano, recently revealed some key strategies on how the world’s flagship crypto, Bitcoin, could reach $225,000 by 2021.

In his most recent letter to investors, the hedge fund manager outlined key fundamentals that may trigger such price action in the not too distant future by saying:

“The average investor fears inflation right now, regardless of whether we actually see that inflation or not. This fear has driven significant capital flows into inflation-hedge assets (Gold, Bitcoin, Real estate, etc). The combination of the Fed’s asset price manipulation and inflation fears have driven gold and Bitcoin to drastically outperform equities and other commodities.

READ: UK court receives $200 million bank guarantee from Nigeria

“Let’s first look at the demand side of the equation. The macro-environment is serving as a tailwind. Bitcoin is up more than 50% year-to-date. The continued 0 rate environment and QE will continue to drive demand. Additionally, we are seeing traditional asset management firms start to make the leap into owning Bitcoin.

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“Fidelity Investments recently published a paper showing a positive impact for 1%-5% Bitcoin allocation in clients’ portfolios. Stone Ridge ($10B asset manager) now owns $115M in Bitcoin.

READ: Uniswap biggest DeFi Crypto Exchange

“Paul Tudor Jones publicly revealed that he has put 2% of assets into Bitcoin. Multiple public pensions in the US have now gained exposure to Bitcoin via fund managers. Grayscale, the largest digital asset investment manager, saw record inflows of $1B+ in 3Q20 and now has almost $6B in total AUM.”

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Why it matters: The world’s economy now looks to be heading toward the insolvency phase, meaning that crypto traders, and global investors are now wary that pre-COVID-19  global economic growth will take longer than anticipated, thereby leading popular companies to hedge against currency devaluation and inflation via investing in digital assets like Bitcoin. Coupled with the bias, there is a fixed amount of BTCs to satisfy the huge appetite prevalent in institutional investors.

READ: 3 Tron investors transfer 719,000,000 cryptos

Anthony Pompliano also gave key insights on why bitcoin’s high demand, in spite of its fixed amount of supply, might just signal the push in price value next year. He said:

“This increase in demand is just starting in my opinion. We can list all of the leading, forward-thinking firms in only two paragraphs. Eventually, their peers will join them. The demand outlook is strong, and it shows signs of actually accelerating into the first half of 2021.

READ: Publicly traded companies own 601,000 Bitcoins, gain $500 million

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“More than 60% of all Bitcoin in circulation today have not changed hands in the last 12 months. This means that the majority of Bitcoin investors stomached multiple double-digit price movements, both up and down, and continued to hold the asset.

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READ: Ethereum robber transfers $1.5 million worth of Crypto

“You could evaluate this situation as (a) demand is increasing significantly, (b) the supply shock is making Bitcoin more scarce, and (c) the available float is much smaller than people actually realize. This framework leads me to believe that we are going to see a violent upward movement in the Bitcoin price by the end of 2021. My base case is approximately 10x to $100,000 and the bull case is around $250,000 per Bitcoin.”

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