Finance is an extremely developing structure with new innovations. Even though millions of people still have no access to any financial structure, billions of people are trying to benefit from these new innovations in finance.
Blockchain technology is one of the newly developed technologies to help create a more decentralized and free system.
Even though, in essence, it is a big help, it brings problems since there is no way to control it because it is decentralized.
Historical White Paper talks about the Libra Network that aims to control blockchain technology to prevent illicit activities like money laundering while keeping the security and trust of the blockchain network.
Libra Payment And Blockchain System
Libra payment system is a new digital finance infrastructure with blockchain technology as the backbone of the entire system.
The main aim of the libra payment system is to create a single and easy-to-control global payment financial system, and the entire system will be on Libra Blockchain, its own blockchain operating system.
Even though blockchain will be the backbone of the system and offer users trust and security, the Libra payment system will have a governance body, that is Libra Association.
Libra Networks, a part of Libra Association, will work to develop and operate this simple payment system.
Libra system will also have its own coin in the blockchain technology where Libra Reserve’s asset back the price of Libra Coin with cash or cash equivalent assets.
Economics Of The Libra Reserve
While thinking about Libra Coins and the entire Libra Reserve, the main purpose of creating Libra Coins is to have a low-cost and simple to access payment system for billions of people around the world.
Libra Coins will not aim to replace foreign currencies but rather help them with ease of transaction.
This way, Libra Reserve and Libra Coin work towards lowering costs and creating a whole new ecosystem to give maximum flexibility and help central banks to prevent illegal activities within the blockchain technology thanks to its governance.
Libra Coin will have stable currency pairs to help more with the transactions.
To govern the Libra network and make sure that the blockchain technology behind Libra Coin is safe and trustable, Libra Network has to have a governing body.
This organization that will follow everything regarding the Libra network and ensures everything is smoothly working is Libra Association.
It aims to be a respected authority around the world and provide trust to those who have access to the Libra network.
Its subsidiary Libra Network will aim to develop the payment system under the same umbrella as Libra Association.
To conclude, the historical white paper is the document that explains what Libra Network is and how it works while introducing Libra Association that governs the entire Libra blockchain network to create a safe, trustable, and governable simple and low-cost payment system for everyone around the world.
Libra’s payment system aims to reduce the number of illegal activities happening in blockchain technology while making sure that the network stays safe and trustable, apart from other financial networks.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.