Digital transactions have been talked about for quite some time now. Amongst these, the most searched and looked for are the cryptocurrencies. They involve the application of the blockchain technology for carrying out peer to peer transactions.
The system is simple, easy to use and can be used from almost anywhere in the world. With the emergence of Bitcoin, the world’s first cryptocurrency every other company began to look for dealing with these.
Currently, there are more than 1000 cryptocurrencies that are developed. People constantly strive to find more ways to profit from them, like investing, holding them for future gains, trading them on the Profit Revolution platform and the likes.
Recently, the social media giant Facebook has also announced that it is working on one such cryptocurrency. It is expected to be fully functional by the next year.
Now that it is officially announced, there are talks and all sorts of comparisons being made with the existing and the original Bitcoin.
Getting the Basics
Before getting into the differences and comparing the two digital currencies, one must get a brief idea about the two. Then one can easily site points of comparisons. So it was the financial crisis of the year 2008 which led to the evolution of digital currency.
Mr. Santoshi Nakamoto is touted to be the man behind the evolution of Bitcoin-the world’s first digital currency. To date, very few governments have backed this currency.
With the increasing talks about the same, many other small and large businesses began working on developing newer forms of cryptocurrencies. The social media platform Facebook also announced officially that they are working in this segment of digital currency.
They have named it as Libra. Libra is a cryptocurrency that has this wallet named CaLibra. It has a unique feature of addressing those customers who even don’t have a bank account and a line of credit. This novel feature is expected to raise the bars in the coming times.
Recently developed software for trading Libra is gaining popularity. It is called Libra Method and it is tested and proven by our team.
Comparing the Two
Once we are aware of the basics, the comparison becomes easier. This will lead us to understand that one out of the two serves our unique purpose. Let us delve into understanding them. Points of comparison:
Usage: The Bitcoin is currently traded and used for businesses and financial transactions. It can be used anywhere, by anybody and on any platform. The Libra coin, on the other hand, is touted to be used for in general transactions on social media platforms or any others. It would require the involvement of the Libra association.
Validation: Libra would not require any special kind of mining or extra validation. It can be simply bought or sold while making use of fiat currency. On the other hand, Bitcoin is something that takes long computational methods to validate the transaction via mining.
The technology used: The underlying technology used for this is blockchain technology. But the way that is used is different from others.
Control: The Bitcoin is a decentralized system and remains majorly uncontrolled. but the Libra coin is expected to be regulated via the Libra reserve, the Libra association and facebook in general. It will be a large centralized system with its partners having one vote.
Write access: When we look at the write access to the ledger, the Bitcoin has this permissionless system. This ensures that anyone with the available and required components can add on the transactions to the ledger. The process might be cumbersome but it does not require any permission. Libra, on the other hand, would lead to only authorized members to add the transactions to the ledger.
Purpose: Bitcoin has the purpose of carrying out simple or even complex transactions without the need for fiat currency. Since it is not backed by any major government so far, it might involve illegal transactions. While Libra, on the other hand, is something that involves the use of fiat currency as well. So there are possibilities that it serves a better and broader purpose than Bitcoin.
Development: Libra is completely developed by facebook. It does not give way for random customers to develop anything regarding the coin. While Bitcoin after being developed by Mr. Santoshi Nakamoto is an open-source software wherein any customer can code or develop the same.
Future: Bitcoin has been stabilized for some time now. So one can get its data regarding the average transactions per day or such. hence one can predict reasonably some future with this. on the other hand, Libra is not launched yet completely so one cant predict its future as of now.
Privacy: It’s been long that facebook has been roped in for the privacy of its customers. With Libra containing the financial transactions and history, this kind of privacy is said to be a grey area. But the social media giant has confirmed of keeping the financial and social media data separate. Bitcoin, on the other hand, has had no such data threats or thefts as of now.
Tracking: Tracking the kind of transaction using Bitcoin is very difficult. While Libra would lead to some kind of tracking ensuring only legal financial transactions.
Benefits & Disadvantages
There are pros and cons to everything. These digital transactions have an issue of using knowledge in the right manner. While there can be miners who deal in illegal ways and products, one can also make use of such applications where legal and financial systems are in a condition of failing. Few benefits are:
- It is a safe, reliable way of transacting.
- It has everything recorded in a secure environment.
- It cant be easily altered.
- It can also not be easily or mined in an unlimited manner.
- It provides the feasibility of transacting online in an easy manner.
The major applications of either of the digital currencies will surely be on e-commerce platforms. Apart from that, businesses are likely to use it for carrying out safe and secure transactions in bulk.
As per the statistics, there are still such nations that have people with no bank account. This online method makes it easier for them to transact in any part of the world. Also, it is great for the student community to make use of digital transactions.
In this digitally revolutionized world, it is quite okay to go digital with even our payments. The cryptocurrencies provide a way out for doing so. Amongst the multiple digital currencies, the Bitcoin being the first and Libra being the latest are the ones to look forward to.
They look quite promising considering the technologies and the vision behind them. They are meant for the masses and not limited to technically skilled people only.
They could also work as a great alternative to the existing financial systems in times of emergency or financial crises.
Choosing between the two could be difficult as one could be unsure of the technology or the intended purpose. Fixing both could lead to a better and informed choice. Staying updated is another important consideration for these technologies. well, if they are backed by the governments, their existing market size would boom like never before.
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