Libra’s Lightning Swap: Why It’s Important
One of Facebook's worst kept secrets, apart from its users private information, is its dedicated cryptocurrency and blockchain solution known as Libra. In the very short period of time that its White Paper has been made available to the public, the blockchain, crypto, tech, etc communities have shown it a panoply of emotions.
These ranged from a healthy degree of optimism, excitement, intrigue and even scepticism and naked hostility. The latter emotions commonly come from those that have otherwise not been strangers to the fact that Facebook has a checkered past with people's information.
Even with this in mind, there is far more detail to Libra and the kind of future is has than we receive from sensationalist news reports and social media feeds.
So while the underlying technology behind Libra was developed and put forward by Facebook, according to both its published White Paper, and statements made by David Marcus in the recent Senate Committee on Banking, Housing, and Urban Affairs, the currency itself will be issued by the Libra Association, while Facebook will only inhabit one of one-hundred founding member positions in the ecosystem.
As a result of this, the Libra Association hopes that Libra will be able to carve out a unique place as a “global, digitally native, reserve-backed cryptocurrency” which provides a much more inclusive and equal foundation for the creation of a global financial system that helps and supports entrepreneurs and the unbanked from developing nations.
Having been built on top of its own publically accessible blockchain, Libra effectively operates as a cryptocurrency akin to a stablecoin in character. Meaning that it is a coin backed by its own reserve of assets to ensure it has a set, stable level of value that is not subject to the same kind of market fluctuations as cryptocurrencies experience.
Along with operating as a more stable crypto asset for its potential users, the Libra system will be governed by the Switzerland based Libra Association – effectively setting it free from any and all federal oversight and regulations.
So, with all of this taken into account, why is it that we should be paying more and closer attention to Libra?
Well, for one, The Libra Association is not just operating in partnership with Facebook; members of its organization includes a wide range of corporations from transport giants like Uber, to telecommunications companies as well as non-profit organizations which serve as de facto ‘champions' at the forefront of their fields.
However you intend to use your money, from buying a few nights in a hotel through a booking app, getting hold of a ride through the likes of Uber or Lyft, making direct payments with Visa or Paypal, or even looking to trade cryptocurrencies through Coinbase, Libra acts as the bridge between you and a growing range of powerful organizations.
It's because of this fact that a Libra lightning swap is so crucial. Having something like a Libra lightning swap take place would more extensively integrate it into a much larger economic system, one of which allows users to easily, and conveniently exchange it with a wider range of other cryptocurrencies and currencies.
One of the digital asset wallets out there that is actually capable of conducting these kinds of lightning swaps with Libra includes the likes of TrustlessBank, which introduced this feature quite recently. Through the use of this software, users can execute atomic swaps, which are generally smart contracts which remove any kind of need for intermediaries to move assets from one chain or another in a trusted monetary exchange.
Atomic swaps themselves can take place directly between many different blockchains as well as off-chain.
Atomic Swaps – Here's how it Works
First of all
Let's say that Jarod from Canada wants to get hold of a particularly rare model that is being sold on a Chinese commerce website. Specifically, this is one seller we'll call Mr. Yao in Beijing.
Jarod works part time as one of the drivers for Uber, which is connected to the Libra crypto ecosystem on account of its own membership as a founder of its Association. The only problem is that Mr. Yao can't just accept Libra on account of China's ban on it. However, Mr. Yang can accept Bitcoin for any online payments on his store.
Jarod and Mr. Yang decide to make the transaction through the TrustlessBank Wallets, as a result, Jarod goes onto his account and indicates that he wants to send a payment to Mr. Yang in Libra which he then wants converted over to Bitcoin to fulfil the latter's payment requirement.
Fourth of all
The TrustlessBank application makes use of its own decentralized, peer to peer network solution in order to identify another user who can provide Bitcoin in a Libra to Bitcoin pairing in order to conduct the transaction.
Last but not Least
The Libra is sent to the other user, who then converts it over to Bitcoin, this Bitcoin is then sent across to Mr.Yang, who can then send the Figurine in a shipment to Jarod.
So, In Conclusion
Libra, with the kind of framework that it has set up with its very high-profile, multinational corporate backers and founding members, along with some really serious brand recognition in tow, may in fact be the very first blockchain project and cryptocurrency to break into the world of mainstream commerce.
One of the serious drawbacks with this remains the same – its direct association with Facebook, with its own red ledger full of data privacy disasters, political controversies and very eschewed motives. What this means is that, while Libra can offer people a truly remarkable product, Facebook's reputation can put the very firm figurative brakes on people handing away their information in KYC and Anti Money Laundering procedures in order to obtain access to Libra.
Along with this, there are several governments, among them, the United States Government, that have since indicated their own expressed concerns about the kind of potential impact that it would have on the already well-established global financial system and, as a result, are all in deep considerations about placing limitations of varying degrees on its application.
Even with all this being said, by having a highly scalable, rapidly acting, decentralized way of converting between various currencies and cryptocurrencies, we can easily and dramatically integrate and onboard users of Libra into a much more expansive global financial system, and allow for an unforeseen level of convenience for all consumers.
If you haven't already, be sure to check out the TrustlessBank Application on its mobile app or even on the browser iteration on the TrustlessBank Website.