What is Crytocurrency?
Cryptocurrency is a type of digital currency. It's called "cryptocurrency" because it uses a very secure form of cryptography to verify transactions. Cryptocurrencies are built on blockchain technology, and the value of a cryptocurrency depends on the type of blockchain it is built on.
Blockchain is a technology that can safely store transaction records on a peer-to-peer network instead of storing them in a single location. Independent servers around the world, called nodes, make up the network that operates the blockchain.
Yes. Libra is a new cryptocurrency designed to have a stable and reliable value and be widely accepted around the world.
Not yet! Over the coming month?s, the association will be working to develop and grow the Libra network. If you are an organization interested in joining the Libra Association, you can learn more here. And if you are a developer, an open-source testnet (an early version of the Libra Blockchain) is available, and you can provide feedback on the code here.
Yes. Libra can be used just like any other currency. Anyone with Libra can convert their Libra into a local currency based on the exchange rate, just like exchanging one currency for another when traveling.
You will be able to use Libra in the same way you use your local currency today, but Libra isn't tied to any one country. Libra is a global currency that can be used across borders. It is designed to be used by people and businesses around the world.
Unlike many cryptocurrencies whose values fluctuate based on speculation, Libra is backed by a reserve of assets. This is similar to how other currencies have been introduced in the past — to help instill trust in a new currency and gain widespread adoption, it was guaranteed that a country's notes could be traded in for real assets, like gold. Instead of backing Libra with gold, it will be backed by a collection of established financial assets.
Safety and security are Libra's highest priorities. Security is built into the very design of the Libra Blockchain to prevent malicious activity. You can read more about security here.
You will be able to buy Libra through exchanges that list Libra or through the applications that will be built on the Libra Blockchain, including digital wallets and other financial products and services.
Libra is legal and can be used in all countries where the use of cryptocurrencies is permitted.
The Libra Reserve was created to preserve the value of the Libra currency. Each Libra coin will be backed by a collection of stable assets held in the reserve. Read more about where the money for the reserve is coming from, the assets that will back each Libra coin, and how the reserve will change over time.
THE LIBRA LEXICON
· Blockchain- The technology underpinning cryptocurrency. Blockchain is a technology that can safely store transaction records on a peer-to-peer network instead of storing them in a single location. Independent servers around the world, called nodes, make up the network that operates the blockchain.
· Consensus Protocol- Consensus protocol allows nodes to collectively reach an agreement on whether to accept or reject a transaction.
· Cryptography- A tool for protecting the integrity of information that is a key component of blockchain technology.
· Digital Currency- A type of currency designed to be used in the digital form. A cryptocurrency is a digital currency.
· Byzantine Fault Tolerant (BFT)- Byzantine Fault Tolerance (BFT) is the ability of a decentralized system to provide safety guarantees in the presence of faulty, or "Byzantine" members. Byzantine Fault Tolerant (BFT) consensus protocols are designed to function correctly even if some validator nodes — up to one-third of the network — are compromised or fail.
· Cryptocurrency- A digital currency that uses cryptography to verify and secure financial transactions.
· Decentralised- A decentralized network is a network where information is stored across a distributed peer-to-peer network, instead of being stored in a single location.
· Fiat Currency- Fiat currency is an object (like a paper bill or metal coin) that has been established as money, often by a government.
· Founding Members - The Founding Members of the Libra Association are a group of trusted, geographically distributed and diverse organizations who serve as the validator nodes that operate the Libra Blockchain.
· Libra Association - The Libra Association is an independent, not-for-profit membership organization tasked with evolving the Libra ecosystem.
· Libra Core- Libra Core is the official name for the open-source implementation of the Libra protocol published by the Libra Association. This software is the first implementation of the Libra Protocol and the Move language.
· Libra Blockchain - Blockchain is a technology that can safely store transaction records on a peer-to-peer network, instead of storing them in a single location. The Libra Blockchain has been built from the ground up to prioritize scalability, security, efficiency in storage and throughput, and future adaptability.
· Libra Ecosystem- The collection of entities that take part in the Libra economy, including wallets, exchanges, validators, developers, users, and more.
· Merkle Tree- Merkle tree is a type of authenticated data structure that allows for efficient verification of data integrity and updates.
· Node- A node is a computer or server that operates the blockchain. A decentralized network is formed by many nodes.
· Permissioned - On a permissioned network, an entity controls access to the network and oversees who can operate a node.
· Smart Contract - Smart contract is a commonly used term for code that is published on a blockchain that can be used to execute transactions. The Move programming language will implement smart contracts on the Libra Blockchain.
· Testnet - The testnet is a live demonstration of an early prototype of the Libra Blockchain software.
· Validator Nodes - Independent servers around the world, called nodes, make up the network that operates the blockchain. A validator node is an entity that validates the Libra Blockchain. It receives requests from clients and runs consensus, execution, and storage.
· Social Impact Grants - The Libra Association will establish a social impact grant-making program in support of financial inclusion.
· Permissionless - On a permissionless network, anyone who meets certain technical requirements can access the network or operate a node.
· Open Source- Open source is a term used for software that makes the original source code freely available so that it can be distributed and modified.
· Move - Move is the name of a new programming language designed to make it safe and easy to program with digital assets. Move is used to implement custom transaction logic and smart contracts on the Libra Blockchain.
· Libra Reserve - A basket of currencies and assets will be held in the Libra Reserve for every Libra that is created, building trust in its intrinsic value. The Libra Reserve is designed to preserve the value of the Libra currency over time.
· Libra Bft- The Libra Blockchain uses the LibraBFT consensus protocol, adopting a Byzantine Fault Tolerant approach to consensus. See "Consensus Protocol" and "Byzantine Fault Tolerant" for more details.
· Governance - Governance is the approach to decision making taken by the decentralized nodes on a blockchain