© 2019 Bernard Marr, Bernard Marr & Co. All rights reserved
Facebook announced Libra on June 18, 2019. A Swiss group called the Libra Association
will govern Libra and currently includes 28 member companies, including Facebook,
MasterCard, Visa, PayPal, Lyft, Uber, and Spotify, and plans to have 100 companies on
board in 2020 when Libra is expected to launch.
According to the 26-page technical white paper released to describe how Libra will work,
it will run on a blockchain. However, it's important to note; Libra diverges from a
traditional blockchain in a couple of ways.
• A traditional blockchain is decentralised. Libra is not decentralised in the way that
Bitcoin is since Libra’s nodes (independent computers that process and verify a
blockchain) will only be run from the servers of Libra Association’s 28 current members.
In response to critics who question the fact that Libra isn’t fully decentralised, Facebook
said that Libra can’t be fully decentralised if it’s to create a “global financial
infrastructure.” The goal is to have Libra be capable of handling 1,000 transactions per
second; Bitcoin can only process seven transactions per second, but Visa's payment
network can support 24,000 a second.