There are more than 5,000 cryptocurrencies out there, and many more coming every day. So, it is certainly not easy to choose the right currency for investment. When trying to assess a cryptocurrency, exploring more about the project behind it is one of the best things you can do. So, when planning to invest in the Libra Coin, one of the most common questions investors ask is whether or not Libra solves the right market problems and what they are.
One of the best ways to determine the quality of a cryptocurrency is to look into the project that it supports. Ask questions such as what the project is about, which industry problems it is trying to solve, who the competition is, and so on.
In the case of the Libra Coin, it is the native cryptocurrency of the Libra Ecosystem, which is a blockchain platform for e-commerce businesses.
According to the website, “The Libra Ecosystem is a blockchain-based platform built for providing solutions to current problems and for the betterment of eCommerce businesses.” But, what exactly are the problems that the project is trying to solve? Let’s take a deeper look into it.
What problems does the Libra Ecosystem solve?
In the Libra project whitepaper, there is a dedicated section titled “Biggest e-commerce challenges” that details the various challenges the traditional e-commerce industry faces. The project aims to solve all these e-commerce challenges and more.
Lack of Financial Services
When it comes to raising funds, small businesses always seem to be facing challenges. Big banks and financial institutions usually prefer businesses with actual revenue and not just the idea for a business. This is also true for startups and small businesses in the e-commerce sector.
The competition in every sector, including the e-commerce industry, is growing, and new businesses are unlikely to get success unless they try out new things and offer better services than existing players in the market.
The need for a middleman
Most of the existing e-commerce platforms are fully centralized, i.e. controlled by centralized entities such as owners and managers. In this kind of system, the well-being of the end consumer is often neglected due to things like lack of transparency, middleman cost, etc.
Lack of security
When you have to share your personal data, etc. with a third party like an e-commerce owner or vendor, it can put your privacy at risk. More often than not, the private information, including card details, phone number, etc. of e-commerce users are leaked from platforms.
Other e-commerce challenges that Libra intends to solve include the complex e-commerce process, fraudulent actors, complicated investment cycle, lack & high cost of payment options, etc.
Are these the right market problems that the Libra Ecosystem solves?
The e-commerce industry, for a long-time, has suffered from the problems listed above. The role of middleman and third parties is way too much in e-commerce processes, which makes things not only complicated but also insecure and expensive. The Libra blockchain will solve all these problems through its next-gen, blockchain-based e-commerce system that is transparent, highly secure and free from middlemen. Moreover, it allows payments using advanced, global and low-cost means such as cryptocurrencies.
Find out more in the Libra Ecosystem project whitepaper at https://libraecosystem.com/assets/site/images/whitepaper.pdf