How is Libra Very Different From Many Other Cryptocurrencies?
There has been a major technology advancement to take on the bitcoin that launched more than a year ago, and it is none other than Libra. However, far from unsettling its established cryptocurrency industry, this move from Facebook goes in space that seems to have had the positive impact. Bitcoin or other cryptocurrencies such as ethereum & ripple stayed very stable following announcement, and with none shifting at value by over 1 percent.
Let us begin by checking out how Libra is same to many cryptocurrencies, like bitcoin or ether. Just like them, even Libra exists completely in a digital form. You cannot get the Libra note and coin. Like other cryptocurrencies, the Libra transactions are well recorded on the software ledger, called as blockchain, which confirms every transfer. Libra blockchain is managed easily by founding members in early stages however, evolve in the open system in future. Not like bitcoin, ether & other cryptocurrencies that are not backed out by anything or swing wildly in reaction to speculation, Libra can get pegged to the basket of assets, which can anchor the real value. Libra Association has not said what these assets can be however, indicated they may include the “bank deposits & government securities in the currencies from reputable and stable central banks.” And that suggests some major global currencies, such as euro and dollar that do not fluctuate violently daily.
Supply of Libra can grow and shrink based upon how popular this is. Suppose people would like to use Libra, association can buy more underlying assets & create, and “mint,” the new Libra.