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The Facebook Digital Currency Project (renamed Meta) has been a hot topic in the field of digital currencies for several years, and many have questions about the nature of this digital currency and its applications to the potential 2 billion users of this currency.

What is Day? What is its purpose? how does it work? Is it a good investment option? This article answers all these questions about Facebook’s digital currency, the world’s largest social network.

What is Day?

Days a technology-based payment system Blockchain, as well as a digital currency funded ( Stable Kevin ), is. Facebook (renamed Meta) is behind this huge project that is claimed to serve billions of people around the world.

Libra is Libim’s previous name. Due to the fringes of this project called Libra, which we will examine in the following article, on December 1, 2020, Facebook changed its name to Diem announced to reduce some of the pressures.

This project has not been launched yet and is in the development stage, But it is estimated that it will be launched by the end of 2022.

We have a payment system

According to published documents, the Daim project has introduced itself as follows:

“Our payment system is made for everyone. Transferring money should be as simple and cheap as texting. “It does not matter where you live, what your job is, or how much you earn.”

According to the official website of Diem, this project has unique features:

• It is mobile: our payment system is available to everyone; It can be used only with a smartphone and simple internet.
•  Stable: The digital currency has a backing that includes the following assets: Cash or equivalent and 2. Government bonds are very short-term.
• Fast: Transactions on this platform are fast and easy; Both when sending money and when spending it.
• It’s for everyone around the world: The pay-as-you-go system makes the global financial system more accessible and connected than ever before.
• Scalable Its: open-source protocol builds a dynamic community of developers who offer products and services to help people access their payment system.
• It is secure: This network is built on China Blockchain technology and is designed with complete security in mind.

Although this project was created at the suggestion of Facebook; To maintain transparency in the project, oversight of all its operations is the responsibility of a council called The Diem Association. It is an institution composed of companies active in various economic sectors, including technology, financial technology, telecommunications, mutual funds, and non-profit organizations.

The members include large companies such as Visa, MasterCard, PayPal, Visa, Aubrey, lift, Kevin Bass, etc. Of course, People, Visa, eBay, and MasterCard because of concerns of lawmakers, this forum were excluded.

However, large companies such as Uber, Kevin Bass, and Spotify are still members of the association. The number of these members may reach more than 100.

We are digital currency; A currency without fluctuations

As mentioned, this payment system has a stable coin or digital currency with backing, which is also called dim. Of course, in the documents, the symbol of this digital currency is “LBR”; But due to the name change, its symbol will probably change as well.

The US dollar, the euro, the British pound, and other major Fiat currencies will support this digital currency, and its value will go up and down; Like T, the price of each unit of which is equal to the US dollar.

Given the support of this digital currency, it can not be considered an independent digital currency. Facebook itself has repeatedly stated that designing this digital currency only helps make national currencies easier to transfer. And in practice, no new currencies have been created.

So, at least in the early stages, digital currency is just money and a means of payment, and it can not be considered an investment option.

Diem; Centralized network

Although Meta (Facebook) itself believes that Daim operates in a decentralized manner. Most Daim experts believe that it will be centralized.

However, according to published documents, Daim’s ultimate goal is to have a payment system without the need for a license (such as Bitcoin and Ethereum). But evidence suggests that the system is currently set to run on a licensed blockchain. For this reason, only members of the Diem Association can trade on this blockchain.

The long-term goal of the project is to provide people around the world with easier and faster access to financial services. Meta plans to launch this digital currency on Facebook, WhatsApp, and Instagram, which will reach more than 2 billion users.

The project also promises to address government constraints and comply with legal frameworks. In that sense, the regime may be complying with sanctions.

If Diem is approved by the US and other regulators, the project will be like a full-fledged central bank running on China blockchain technology. With this description, it is easy to see that this project is something different from Bitcoin and other digital currencies.

How does it work?

This digital currency will be launched based on its exclusive China blockchain. The chain is based on an algorithm called LibraBFT, which has many similarities to PoS. To confirm any transaction on the network, two-thirds of the participants, or validation nodes, must confirm it.

Initially, only members of the Libra community were responsible for verifying and validating transactions. The main condition for joining the Liberian community is that each member must pay at least $ 10 million in cash as collateral and support. However, in the future, more people will be able to participate by depositing Libra tokens.

Blockchain Libra for writing has smart contracts a proprietary programming language called “Move”. So like Atrium, we have something more than a stable digital currency about Libra.

According to Libra White Paper, the transaction speed of this network will be at least about 1,000 transactions per second, which will increase according to the needs of the network. The network fee is also very small and close to zero.

Although the Liber China blockchain does not ask for real names or information, and like Bitcoin and other blockchains. Only addresses and pseudo-accounts will be available on the network, the project has reassured lawmakers that it can prevent illegal transactions if needed. Be.

It can be said that Facebook’s digital currency project has three unique parts that work together in harmony to create a comprehensive and secure financial system. These three sections are:

1. China Blockchain Technology

One of the components of DIM digital currency is the Chinese blockchain infrastructure with scalability and acceptable security, which is the technological basis of this payment system.

The open-source source code is available on the Github website. This code is written in Rust programming language and can be accessed by anyone.

CodeDim is scalable and allows hosting a large number of projects for the infrastructure of this digital currency. As we said, Dim is developing a new programming language called Move, which is to be used to build smart contracts and execute custom transactions.

2. New digital wallet

Novi Wallet is an advanced wallet developed by one of Facebook’s subsidiaries called Novi Financial. The wallet also change the project name, the name itself has taken before and by the end of 2020, Kalybra (Calibra) was called.

Novi is a standalone application that is likely to integrate with software such as WhatsApp, Facebook Messenger, and Instagram, and possibly other platforms.

3. We are a digital currency

Diem Digital Currency is a vital part of Facebook’s global digital currency project. Quinn’s strong backing is reserved that includes cash and cash equivalents. Of course, short-term government securities are also part of this support.

Thus, this digital currency is a stable coin that, according to its development team, cannot be extracted like Bitcoin and many digital currencies. In the early stages of the project, only members of this association will be able to process transactions; But Deim is planning to move to a system stock-proof, which is expected to be completed within five years of the project’s launch.