According to the white paper, “Libra is a simple global currency and financial infrastructure that empowers billions of people.” Libra has five essential components/features:
- Built on a secure, scalable, and reliable blockchain.
- It is a stablecoin which is backed by a reserve of assets.
- It is governed by the independent Libra Association.
- Uses the LibraBFT consensus mechanism.
- Smart contract coding is done through “Move” programming language.
We are well and truly living in the digital age. That’s not just a cliched statement. As the Libra whitepaper puts it,
“The advent of the internet and mobile broadband has empowered billions of people globally to have access to the world’s knowledge and information, high-fidelity communications, and a wide range of lower-cost, more convenient services. These services are now accessible using a $40 smartphone from almost anywhere in the world.”
The Libra blockchain is not really a blockchain in the traditional sense. The Facebook team decided to code their chain from scratch for it to fulfill the following requirements:
- Must have the ability to scale to billions of accounts. This requires high transaction throughput, low latency, and an efficient, high-capacity storage system.
- Must be highly secure, to ensure the safety of funds and financial data.
- It should be flexible, so that it can power the Libra ecosystem’s governance as well as future innovation in financial services.
Transaction Structure and Fees;
A typical Libra transaction has the following components:
- The account address of the transaction sender.
- The public key that corresponds to the private key used to sign the transaction.
- A script coded in Move to execute the transaction along with the arguments (if needed).
- The gas price or the fees associated with the transaction.
- The gas limit of the transaction. This is the maximum amount of gas that the transaction can consume before it halts.
- An unsigned integer that must be equal to the sequence number from the sender’s LibraAccount.T resource. After this transaction executes, the sequence number is incremented by one.