In the last few years, cryptocurrency has become popular among many people. However, many people are most familiar with the Bitcoin but there are other cryptocurrencies as well. In June this year, Facebook also joined the cryptocurrency industry after announcing its intention to launch its Facebook cryptocurrency. With Facebook being one of the most popular social media platforms, more people have shown interest in this cryptocurrency as well. 

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The Facebook cryptocurrency will be known as Libra. It is, however, important to understand what is facebook Libra. It is basically a cryptocurrency that has been developed by Facebook. This cryptocurrency is, however, intended to reduce the cost of sending money online, as well as making the process faster. Also, people will have better access to financial services more so those who don’t have bank accounts. 

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The main concern among many people is, how Facebook Libra works. Libra, as well as the technologies intended to use the Facebook cryptocurrencies,  will be built on a blockchain technology known as Libra Network. A blockchain is composed of numerous servers known as nodes. These servers record and validate each transaction that takes place on the network. 

But unlike other cryptocurrency networks where any server can join the chain, Libra Network will be a permissioned blockchain. Therefore, only certain servers will be allowed to connect to the chain. Because of this, Facebook has said that the permissioned blockchain will make the network run faster compared to other cryptocurrencies. This will, in turn, make Libra practical for every day uses such as buying things online. 

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On the other hand, the Libra Network is built upon an open-source code that will allow developers to create digital wallets and other tools that will allow them to use Libra. According to Facebook, they will later transition the network into a public blockchain. However, they have not offered details on how the transition will be done. 

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The main purpose of developing the Facebook Libra coin is to move money around with ease just like sending an SMS. However, Libra is not intended to replace current financial systems like the case with Bitcoin. Instead, the purpose of developing Libra is to expand the digital payment method to reach the under-served populations that cannot access traditional financial institutions with ease. 

For the average consumer, therefore, Libra will be a truly global currency. This will then result in lower fees, close-to-instantaneous worldwide transfers, and more accessibility, which are the main goals of Facebook Libra cryptocurrency.