Social media giant Facebook has unveiled the whitepaper for its Libra blockchain project and cryptocurrency, which has a stable value backed by various currencies such as the U.S. Dollar, U.K. Pound, and Euro.
According to the New York Times, the new digital currency will possibly be made available to the public mid-2020 as a form of payment on other social media platforms such as Messenger, Whatsapp, and Instagram or ads on Facebook.
The Libra blockchain is designed to address three requirements: to scale to billions of accounts, adopt a highly secure system to protect funds and financial data, and serve as a flexible platform to power the project ecosystem’s governance and future innovation in financial services.
Facebook set up Merkle trees to protect data on the Libra blockchain.
The American firm’s Geneva, Switzerland-based Libra Association, which is assigned to oversee the Libra project, will work on the final design of the Libra coin and scout for banks willing to hold the money that will support the cryptocurrency.
The initial members of the organization will consist of companies from various industries such as payments, telecommunications, and blockchain. Some of these firms include Mastercard, PayPal, Visa, eBay, Uber, and Coinbase.
The Libra Association will potentially consist of 100 members.
The social network company has also launched a subsidiary called Calibra, which will serve as the mediator between social and financial data, as well as an entity in charge of services on top of the Libra network.