Libra is a cryptocurrency created by Facebook. The purpose of the Libra cryptocurrency is to use it as a simple, low-cost global currency.
This will be basically digital money on your phone, which can be used to pay for any purchase where cryptocurrency is supported. Libra is backed by a basket of assets, which include large currencies and instruments of government debt.
Quick summary
Libra is a cryptocurrency developed by Facebook, intended to be used worldwide through a simple, low-fee exchange.
It supports a basket of assets, including securities for major currencies and government debt that provide cryptocurrency stability.
The cryptocurrency and its associated reserves will be handled by the Cobra Association, a non-profit association of co-founding partners.
How does Libra work?
Libra can be used for purchasing, holding, and using cryptocurrency wallet applications. By cashing in dollars, you can receive Libra tokens. Cryptocurrency can be used in any business that supports its use. Facebook is also developing a digital wallet service that can block and spend these tokens, called Calibra.
Tokens are monitored and tracked by the Libra Association, a non-profit organization. As individuals exchange their local currency for tokens, the association will ensure that tokens have the support of major currencies and securities. The basket allows cryptocurrency to have a relatively stable price.
The Libra Association operates as a regulatory body for cryptocurrency and will not be run solely by Facebook. Instead, the association has 28 founding partners, including MasterCard, Visa, eBay, and many more. Like other members of the association, Facebook will have one vote.
Libra uses cryptocurrency blockchain technology. However, it is not a real blockchain currency because it is not fully decentralized. Only members of the Libra Association will have access to the transaction ledger.
What is the purpose of the pond?
Libra aims to be used as a simple medium exchange worldwide. Supporting cryptocurrencies with a basket of major global currencies aims to provide stability. As a result, the usefulness of the coin is promoted as a common currency that can be used for daily transactions.
In Libra's White Paper, one of the most important issues I would like to draw attention to is how much it costs to transfer money to people in developing countries. In these developing countries, remittance services charge hefty fees and take ڈالر 50 billion a year away from families. Saving money is not always easy in such nations, and coming back means losing everything. Globally, approximately 1.7 billion adults are unable to access traditional banking. However, 1 billion own a mobile phone.
The goal of cryptocurrency is to become a mainstream digital currency that anyone can use. By charging much cheaper fees than sending services, using blockchain technology, and stabilizing the value of the currency, Libra strives to provide better, cheaper, and more open access to financial services for all.
How is Libra different from other cryptocurrencies?
As mentioned earlier, one of Libra's distinguishing factors is its support for real assets. Many cryptocurrencies do not, which is why they lack the stability and guaranteed entry price that Libra offers. There are other cryptocurrencies that are backed by real assets. However, most people are stuck with the same currency. Instead, Libra uses a basket of large currencies and government debt instruments.
Another interesting factor is that this cryptocurrency has the support of many strong businesses that form the Libra Association. The association includes companies such as Visa, MasterCard, PayPal, and eBay. The association manages the Libra Reserve and is the only one that can create or destroy tokens.
Compared to many other cryptocurrencies, Libra has lower fees and safer reserves of real assets, resulting in less volatility. For example, the bitcoin, today's most popular cryptocurrency, sought to facilitate transactions. However, keeping it as a reserve of value became another asset.
How will Facebook benefit?
Facebook, as well as members of the Libra Association, can earn money and cover their expenses based on interest on assets. The more mainstream currency is created and the more assets are kept in reserve, the more members, including Facebook, will contribute to interest income.
By turning the indirect business on these websites into ad buyers, Facebook can benefit from the widespread use of Kobera. The problems you encountered
The Libra Blockchain will be open forever
