Diem (previously Libra) is a decentralized distributed ledger payment method suggested by Facebook, Inc., a Californian social networking corporation. A digital coin deployed as a digital currency is also part of the proposal.
The money and infrastructure are not yet operational. The release was initially scheduled for 2020. However, only a primitive testing script has been made available. The Diem Alliance recommendations comprising financial, technological, telecommunication, online store, venture funding, and charities will administer, and encrypted data certify the initiative, cash, and payments.
Before December 2020, the Diem was known as "Libra."
History of Diem
Morgan Beller joined Facebook in 2017 to research cryptocurrencies and bitcoin and was originally the only employee researching on Facebook's distributed ledger program.
In May 2018, Facebook vice-chairman David A. Marcus transitioned from Messenger to a blockchain technology business. After few weeks, the initial report of Facebook developing a digital currency with Marcus in leadership surfaced.
In February 2019, the initiative attracted the attention of more than 50 experts.
In May 2019, Facebook confirmed its intention to launch a digital currency. At the moment, it was referred to as "Facebook Coin" or "GlobalCoin."
On June 18, 2019, the initiative was publicly unveiled as Libra. David Marcus, Morgan Beller, and Kevin Weil (Novi's Product vice president) are credited as the currency's inventors. The official release date was set for 2020.
On July 15, 2019, Facebook said that the cryptocurrency would not be available until all legal issues were addressed and Libra (Diem) had received the "necessary permissions."
On September 18, 2019, Mark Zuckerberg stated in a conference with senior Senate Congressional democrats that Libra will not be released elsewhere in the globe first before receiving clearance from US authorities.
Several firms quit Libra in October 2019: On 4 October, PayPal departed, joined by Stripe, eBay, Visa, Mastercard, and Mercado Pago on 11 October, and Book Services on 14 October.
As shown in November 2020 Global Times article, Libra will introduce a streamlined strategy in which the digital currency would be supported one-for-one with the US dollar instead of a multi-currency assemblage. According to the publication, the digital currency will be now known as Diem, which is Latin for "day."
Libra was relaunched as Diem in December 2020, and the Libra Organization was titled as Diem Group. Diem group currently has 27 participants as of December 2020.
The Libra coin will be supported by capital assets, including the US Treasury securities and a basket of currencies to prevent instability. Facebook has stated that every partner would contribute an early US$10 million, ensuring that Libra has complete asset support from the start. Libra is believed to have abandoned the concept of a hybrid floating currency in place of specific coins linked to a particular currency since around January 2020.
Libra organization service members will produce additional Libra money subunits according to demand. Once Libra currency subunits are exchanged for standard cash, they will be destroyed.
Starting transaction verification will be done for every service customer, and the blockchain's distributed system reconciliation will be conducted among existing users. The goal is to avoid anyone other than employees of the Libra organization from extracting and analyzing information from the decentralized ledger. Unlike digital currencies like bitcoin, which employ trustless crypto, Libra is not autonomous, instead of depending on confidence in the Libra organization like a "de facto central bank."
Facebook released in September 2019 that the set-aside cart would be composed of 14 percent Japanese yen, 50 percent US dollars, 11 percent Pound sterling, 18 percent Euros, and 7 percent Singapore dollars.
Facebook formed the Libra Corporation (later called Diem Corporation) in Geneva, Switzerland to manage the money. In December 2020, Diem Corporation involved the following companies-
Seven additional firms were mentioned as Libra Corporation members in the first June 2019 release but departed before the inaugural Libra conference on October 14, 2019. PayPal, Booking Holdings, Mercado Pago, eBay, MasterCard, Stripe, and Visa are among the companies involved as Libra Corporation members.
In July, Visa chairman (VC) and Chief executive officer (CEO) Alfred F. Kelly emphasized that the company had not entered but had accepted an unbinding letter of intent and that "nobody has yet formally entered." He stated that aspects are influencing Visa's intention to support "the capacity of the group to meet all of the required regulatory criteria."
Vodafone Company entered the organization in October 2019 but departed in January 2020, citing a desire to focus on its mobile banking business M-Pesa.
The lack of Google Pay, Apple Pay, Amazon, and any banks were noticed in media exposure through the first Libra launch. Banking executives have been hesitant to participate owing to regulatory concerns and the program's viability.
Shopify and digital-currency exchange Tagomi combined in February 2020.
The organization wants to expand to 100 members with equivalent voting rights.
Checkout.com, an online payment firm, declared its intention to enter the organization in April 2020. As a portion of the renaming from Libra to Diem, the Libra Group was called Diem Group on December 1, 2020.
Diem Group (previously Libra Group) suffers from legal difficulties since the cryptocurrency's title and emblem are already used in other countries.
Finco Services Inc has launched a complaint in New York Southern District Court over Facebook, Inc., Jlv, Novi Financial, LLC, Inc., and Character SF, LLC to claim copyright violation stemming from the latter's usage symbol close to Finco Services, Inc.'s beginning bank. The claimant has asked the respondents for provisional and final summary judgment with monetary damages. A resolution discussion in this issue is planned for March 26, 2020, in the United States (US) Courthouse, although the parties did not agree to the hearings being conducted before a district court judge and instead sought to be convicted before a panel.
Libri GmbH, Lyra Network, Libra Internet Bank, and Innovative New Technologies Co., Ltd. competitors. The Libra Group has applied to the European Union Intellectual Property Bureau to register "LIBRA" as a spoken logo in Europe. The process has already got five registered opponents from four European firms, all of which are premised on the claimed possibility of conflict with their existing logos. When a resolution is achieved within the cooling-off time, the claimants will enter the adversary phase of the opposing procedures in April 2020.
Libra will not be dependent on bitcoin extraction. Only Diem Association representatives will be allowed to conduct payments on the blockchain platform. Within the next five years, Libra aims to start migrating to a confirmation system. However, their internal papers concede that there is no alternative "that can offer the size, reliability, and safety required to sustain billions of users and payments around the world via a trustless network."
In June 2019, Facebook revealed intentions to launch Calibra, a mobile wallet, as a separate application in 2020 and incorporate it into Messages and WhatsApp. Calibra was changed into Novi in May 2020. Novi and libra have not yet been published and have no official launch time as of February 2021.
Libra's program code is written in Rust and available on GitHub within the Apache Software Foundation.
Elaine Ou, an editorial columnist at Bloomberg News, attempted to compile and execute the publicly disclosed Diem code in June 2019. The program did nothing more than permit phony tokens to be placed in a wallet at this phase. Basically, any capability specified in the paper, such as important architectural elements that have yet to be developed, was executed. Elaine Ou was taken back by Facebook's decision to launch software in a rather form.
The Move is the planned smart contract and unique programming language for the libra blockchain. It will be a structured query coding language that will convert to bytecode. The syntax for the specific language has still not been provided.
As an instance, The Move white paper depicts an intermediate code of the language.
Features of Libra
Some features of Libra are discussed below:
Diem tokens are guaranteed by an inventory reserve comprised of money or money equivalents and short-term treasury securities.
Users with an entrance-level mobile and data connection will be able to use the Libra payment system.
There is no problem wherever you transfer or invest your money. Libra transactions are fast and easy.
The Libra payment system will make the world financial system better approachable and linked.
The open-source Libra protocol will promote a lively programmer group that will create goods and services to assist consumers in accessing and using the Libra transaction system.
The Libra network is based on distributed ledger technology and is geared for safety.