Facebook Launches their own Cryptocurrency and Jumps on Blockchain Train

Facebook Launches their own Cryptocurrency and Jumps on Blockchain Train

We have only reached the tip of the iceberg with blockchain and cryptocurrency. When asking the general public, most people have heard of “cryptocurrency” and usually associate it with Bitcoin, but the general masses still do not understand what crypto is, the benefits of using it, how to use, and why they should use it.

All this is about to change because of social media giant Facebook bringing the blockchain and crypto conversation mainstream – a very exciting time for blockchain-based projects like Bloqbox by Robin8, a blockchain digital asset lockbox that gives users 100% control of their data and can be used to protect intellectual property and/or sell in the Bloqbox marketplace.

On Tuesday June 18, 2019, Facebook announced a new blockchain-powered currency called Libra and a digital wallet called Calibra in this White Paper (SOURCE).  Cofounder and CEO Mark Zuckerberg said he wants to make sending money as easy as sending a photo: digital, immediate, free, and secure (SOURCE).  Think of this like the new PayPal but much more accessible / integrated and best of all free (a small fraction of a cent is paid as a nominal “gas” fee for each transaction but users won’t notice this).

Since the announcement, there has been a tidal wave of hype, opinions, and backlash ranging from Facebook’s new cryptocurrency will be the end of sovereign currencies to it even causing the next financial crisis. While both of these exaggerated scenarios will never come to fruition, there is one huge upside to the largest social media platform in the world jumping on the crypto and blockchain train:  changing the way people see and understand cryptocurrency.

Facebook is, right now, the dominant player in social media with more than 2 billion users on a planet of around 7.7 billion (SOURCE). They are in the perfect position to make crypto and blockchain mainstream which is good news for the Robin8 PUT (Profile Utility Token) Economy. The more people know about cryptocurrency and trust it, the better other crypto projects are received by a bigger, widespread audience – and not just the niche audience of “crypto people.”

We identified early on that we must make our blockchain application very easy to use and understand – Bloqbox does just that. Next we had the hurdle of making it easy for everyone to use PUT – Bloqbox’s digital currency – without having to go to a third party to exchange dollars to a common cryptocurrency like Bitcoin and then having to go to the exchange and trade for PUT.   So we have built an USD to PUT exchange feature inside Bloqbox where users simply use a credit card to exchange USD for PUT without having to leave Bloqbox.

PUT can then be used:

  1. Inside Bloqbox to upload digital assets to the blockchain (IP Protection, private digital locker, and/or to sell in the marketplace).
  2. Inside the Robin8 peer-to-peer advertising app (users share content and earn PUT/money for clicks their share gets)
  3. To purchase Robin8 products/services to receive a 30% discount – for example, Robin8Search is the largest influencer search engine in China and now is expanding globally. Companies and Agencies can search, find, analyze, and buy KOLS to maximize their influencer marketing efforts while saving time and money. Our three KOL scores (relevancy, influence, and trust) allow companies to see past the fake data and find the best KOLs to work with.
  4. Or can be exchanged for USD on any exchange.

With Facebook launching their own cryptocurrency, billions of people will be introduced to crypto and the benefits of it. We are thrilled that the crypto conversation will now be amongst a widespread global audience and not limited to the tech community.

Quick Facts:

  1. Libra is Facebook’s new digital currency represented by a Unicode character ≋ and powered by blockchain technology currently on its testnet (SOURCE) . “The name Libra comes from the word for a Roman unit of weight measure. It’s trying to invoke a sense of financial freedom by playing on the French stem ‘Lib,’ meaning free.” (SOURCE)
  2. The public launch of the digital currency is planned for the first half of 2020.
  3. It’s not just for Facebook. “Facebook formed a subsidiary called Calibra to operate the Libra blockchain network. The first product of Calibra will be the digital wallet for Libra. The wallet will be available in Messenger, WhatsApp and as a standalone app. Users will be able to save, send and spend Libra with a smartphone, ‘as easily and instantly as sending a text message and at low to no cost’” (SOURCE).
  4. To buy Libra, a user will need to cash in a local currency. After that, they will be able to spend Libra like dollars without big transaction fees or their real name attached or to cash out when they want to.
  1. It’s not bitcoin– at all. Unlike bitcoin, the new currency is stable and will be run on blockchain technology that runs “from the ground up” in order to “process thousands of transactions per second.” (SOURCE)  According to the Libra Whitepaper, “There’s always 100% of the value of the Libra in circulation, collateralized with real-world assets in the Libra Reserve.” (SOURCE)  Also, Libra is built for speed.  One issue with current blockchains is the speed at which a transaction is recorded.  “Every Libra payment is permanently written into the Libra Blockchain — a cryptographically authenticated database that acts as a public online ledger designed to handle 1,000 transactions per second. That would be much faster than Bitcoin’s 7 transactions per second or Ethereum’s 15 per second.”  (SOURCE)
  2. Banking information is safe. Facebook will not have access to financial data that will be available in Libra.  They designed Calibra in order to build trust in the new currency. Facebook users do not want their financial data being used for ad targeting and want to keep their social data separate from their banking data. (SOURCE)  “Facebook says Calibra will not share account information or financial data with Facebook or any third party without customer consent. The social media giant also claims Calibra will have strong protections in place to keep users’ money and information safe.” (SOURCE)
  3. Transactions aren’t entirely free, but will seem to be free for users. Users “incur a tiny fraction of a cent fee to pay for “gas” that covers the cost of processing the transfer of funds similar to with Ethereum. This fee will be negligible to most consumers, but when they add up, the gas charges will deter bad actors from creating millions of transactions to power spam and denial-of-service attacks.” SOURCE
  4. Facebook won’t fully control Libra. There are currently 28 founding members in the Libra Association – each have invested at least $10 million. Each member will have a single vote in its governance. The 28 current members and their industries are:Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa;
    Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Mercado Pago, Spotify AB, Uber Technologies, Inc.;
    Telecommunications: Iliad, Vodafone Group;
    Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited;
    Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures;
    Nonprofits, multilateral organizations, academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking.

    “Facebook hopes to reach 100 founding members before the official launch and is open to anyone that meets the requirements, including competitors to like Google or Twitter.” SOURCE

  5. “The association will promote the open-sourced Libra blockchain and developer platform with its own programming language Move. Moreover, it will work on expanding the network of merchants accepting Libra as a payment method.” SOURCE
  6. “With Libra, Facebook aims to create a global digital currency that promotes financial inclusion for the unbanked or underbanked population.” SOURCE

Facebook is currently being investigated for privacy issues so the launch of Libra adds a whole other level of scrutiny. However, even if a fraction of Facebook’s user base converts to Libra, it’s on the path to becoming the largest and most profitable peer-to-peer (decentralized) ‘financial institution’ in the world.” (SOURCE)

Protect it Before you Share it – try Bloqbox for free and create your digital asset locker today. Bloqbox is ideal for inventors, photographers, authors, songwriters, content writers, and anyone who wants to privately store/save sensitive data or digital files without ANY third party having access to it. YOU decide who sees it. Register here.