What is a ‘Cryptocurrency’?

What is a ‘Cryptocurrency’?

What is a ‘Cryptocurrency’? The ‘blockchain’ is a technology that is going to change the world.

What is a ‘Cryptocurrency’?

What is a ‘Cryptocurrency’? bitcoin Blockchain Example

What is a ‘Cryptocurrency’? Think of a Blockchain like an accounting ledger David 10.1 Paul 30.7 Amy 0.005

What is a ‘Cryptocurrency’?

What is a ‘Cryptocurrency’?

What is a ‘Cryptocurrency’? Everybody owns a copy of the ledger and it is public.

What is a ‘Cryptocurrency’? However, long codes are used instead of names to help keep it anonymous

What is a ‘Cryptocurrency’? On a simple level you just broadcast to everyone on the network and tell them:

What is a Libra & their mission?

The Mission “Simple global currency and financial infrastructure that empowers billions of people.”

The Mission 1.7 billion adults globally remain outside of the financial system (31% of the world)

Common Reasons: - Too expensive The Mission Common Reasons: - Too expensive Too far away Not having the required documents

Cross border payments currently take 2-7 days The Mission Cross border payments currently take 2-7 days

The poorest people pay the most. The average commission is 9% The Mission The poorest people pay the most. The average commission is 9%

We will cover it in more detail in the technology part of this talk. What is a Libra What is a Libra - We will cover it in more detail in the technology part of this talk.

Libra is a cryptocurrency developed by Facebook What is a Libra Libra is a cryptocurrency developed by Facebook

“Sending money should be as easy as sending a picture or message” What is a Libra “Sending money should be as easy as sending a picture or message”

It is built on a secure, scalable, and reliable blockchain; What is a Libra It is built on a secure, scalable, and reliable blockchain; It is backed by a reserve of assets designed to give it real-world value; It is governed by the independent Libra Association tasked with evolving the ecosystem.

Recommended read: https://libra.org/en-US/white-paper/ The Mission Recommended read: https://libra.org/en-US/white-paper/

How people will/can use Libra

You will need a digital wallet. How we will use Libra You will need a digital wallet.

Facebook have their own wallet called Calibra How we will use Libra Facebook have their own wallet called Calibra Third-parties can create their own wallets

How we will use Libra

How we will use Libra Facebook has publicly said you will not need a FB account and they will not track you.

How do you put real-world cash in to your calibra wallet? How we will use Libra How do you put real-world cash in to your calibra wallet?

Local or online currency exchanges How we will use Libra Local or online currency exchanges

How we will use Libra Users can then turn their libra back in to local currency using the same system.

How we will use Libra There will be a less and less need to convert to a local currency the more businesses start accepting

How we will use Libra

The technology behind Libra

The Technology Love or hate Facebook, they have the best technology and minds cryptocurrency has ever seen

The Technology Libra create the ‘tokens’ out of thin air. They can ‘mint’ as much as they want whenever they want.

The Technology Libra will also burn tokens when they are sold back or when there are too many tokens not being used.

Libra is designed to be a stable cryptocurrency The Technology Libra is designed to be a stable cryptocurrency USD, Pound, Swiss Franc and Japanese Yen

The Technology Your money is backed by ‘secure’ investments in different parts of the world.

Facebook has the ‘network effect’ The Technology Facebook has the ‘network effect’

Blockchain transactions are confirmed by ‘nodes’ The Technology Blockchain transactions are confirmed by ‘nodes’ In bitcoin, anyone can be a ‘node’ at a low price ($40-$80).

The Technology Currently, to become a node operator for Libra you need to join the “The Libra Association” which costs a minimum of $10million per node

The Technology

Full node operators make a profit. The Technology Full node operators make a profit. When sending a payment there will be a small transaction fee (called GAS) that will go to the node operators.

The Technology Long-term Facebook wants to allow anyone to become a node operator, but they openly admit today that they don’t know how. Maybe proof of stake?

“The Libra Association” have their own secret voting tokens The Technology “The Libra Association” have their own secret voting tokens

The Technology “The Libra Association” also get dividends from interest earned on the Libra reserve. The more ‘tokens’ the bigger the percentage.

The Technology Facebook created its own programming language only for Libra called: Move

The Technology Specifically designed for blockchain transactions, and for developers to build apps that work with Libra. (not public today.)

Libra Blockchain is open source. Anyone can develop and connect to it. The Technology Libra Blockchain is open source. Anyone can develop and connect to it.

The Technology Eventually, Move developers will be able to create smart contracts for programmatic interactions with the Libra Blockchain.

Plans to keep businesses onboard: The Technology Plans to keep businesses onboard: For each transaction they process, merchants will also receive a percentage of the transaction back. Business that keep users sufficiently active for over a year will be rewarded Business that pull users through the ‘Know Your Customer (KYC)’ anti-fraud and money laundering process will be rewarded

Advantages and Disadvantages

Advantages Fast global payments Very small fees (not publicly known yet) Secure and safe Fast adoption Opening new markets

Advantages In case you are hacked, scammed or lose access to your account, Calibra will refund you for lost coins when possible through 24/7 chat support because it’s a custodial wallet.

Advantages Libra vaguely said that anywhere that accepts Visa or Mastercard will accept Libra as a form of payment (no timeframe or solutions given)

Facebook isn’t exactly known for its ethical operations. Disadvantages Facebook isn’t exactly known for its ethical operations.

Disadvantages You don’t own your money and it can be taken from you or the rules can be updated anytime without your agreement.

Disadvantages

Disadvantages They want to ‘help’ the unbanked and undeveloped, but can they legally do it? https://www.skuld.com/topics/legal/sanctions/russia/insight-russia-sanctions/

Disadvantages

Legal

How will Tax work? An avoided subject Legal How will Tax work? An avoided subject

Governments are businesses and their income is Tax. Legal Governments are businesses and their income is Tax.

They will have to be checking where and to who pays are going to. Legal They will have to be checking where and to who pays are going to.

Libra vs other Cryptocurrency

Libra vs other Cryptocurrency Libra vs bitcoin

Libra vs other Cryptocurrency Libra vs Ethereum

Libra vs other Cryptocurrency Libra vs Litecoin

Personal Notes

Will raise awareness of Cryptocurrency Personal Notes Will raise awareness of Cryptocurrency

Changing the current banking system excites me and makes me nervous Personal Notes Changing the current banking system excites me and makes me nervous

Where is Google, Apple and Microsoft? Personal Notes Where is Google, Apple and Microsoft?

Questions?