Facebook Libra, now known as Diem, is a digital currency or cryptocurrency proposed by Facebook in June 2019. It is designed to be a global payment system that allows people to send money to anyone in the world quickly and easily. Libra aims to be stable and secure, making it an attractive alternative to traditional currencies and payment methods. In this tutorial, we will discuss the basics of Facebook Libra (Diem), its purpose, and how it works.
Overview of Facebook Libra (Diem)
Facebook Libra (Diem) is a digital currency that uses blockchain technology. It is designed to be a stablecoin, meaning its value is pegged to a basket of assets, such as government bonds and currencies, to avoid the volatility often associated with other cryptocurrencies. The aim of Facebook Libra (Diem) is to make it easy for people to send and receive money anywhere in the world, without the need for a bank account.
The Libra Association
The Libra Association is the organization responsible for managing and governing the Libra network. It is a non-profit organization based in Switzerland that is made up of various companies, including Facebook, PayPal, and Mastercard. The association’s goal is to promote and support the use of Libra and to ensure its stability and security. The association has a council made up of one representative from each member company, which is responsible for making decisions about the network’s direction and governance.
How Does Facebook Libra (Diem) Work?
Facebook Libra (Diem) works by using blockchain technology, which is a decentralized system that allows for secure, transparent transactions. The Libra blockchain is built on a new programming language called Move, which is designed specifically for the Libra network. When a user sends money using Libra, their transaction is recorded on the blockchain, which is then verified by a network of nodes, or computers, on the network. Once the transaction is verified, the recipient receives the funds in their digital wallet.
The Libra Reserve
One of the key features of Facebook Libra (Diem) is its reserve, which is a pool of assets that is used to back the value of Libra. The reserve is designed to be diversified and stable, to ensure that the value of Libra remains stable over time. The reserve is managed by the Libra Association, which is responsible for making decisions about the reserve’s composition and management.
The Libra Wallet
The Libra wallet is a digital wallet that allows users to store and manage their Libra coins. It is designed to be easy to use, and it can be accessed through various platforms, including Facebook Messenger and WhatsApp. The wallet allows users to send and receive Libra, as well as to buy and sell Libra for other currencies.
Regulation of Facebook Libra (Diem)
Since Facebook announced the creation of Libra, there has been significant concern from regulators around the world about the potential risks associated with the cryptocurrency. In particular, regulators are concerned about the potential for money laundering, terrorist financing, and other illegal activities. As a result, the Libra Association has faced significant regulatory challenges, and its launch has been delayed.
Conclusion
Facebook Libra (Diem) is a digital currency that has the potential to revolutionize the way people send and receive money around the world. Its stable value and ease of use make it an attractive alternative to traditional currencies and payment methods. However, there are still significant regulatory challenges that must be overcome before it can be widely adopted. Despite these challenges, Facebook and the Libra Association remain committed to the development and launch of Libra, and it will be interesting to see how it evolves over the coming years.
