What is Abra?
The developer of the Litecoin cryptocurrency platform Charles Lee, one time teased users of the cryptocurrency that there is a huge surprise for them. The surprise came in the launch of an exciting application called; “Abra.”
This application called Abra, with the assistance of Litecoin and Bitcoin’s smart contract functionality, allows individuals to invest in about 50 fiat currencies and about 20 cryptocurrencies. Not only does it allow individuals to invest in about 70 different currencies combined, but it also allows them trade and exchange assets without fees and with ultra-fast speed. These features make the Abra application the only app in the world that is capable of performing the functions mentioned above. It is interesting to note that the apps are available to all users in the world, and twenty cryptocurrencies have been added.
How does the Abra Application Work?
Most people have been wondering, to break it down we will use an example to really hit the point. Let’s say you deposit about $10,000 worth of LTC tokens into the Abra application and seek to trade with Stellar, with its price fixed at $0.25. A multiple-signature transaction is created, you will have to sign the first part or half of the transaction to Abra. After that, you lock up your LTC tokens. If there is an increase in the price of Stellar in relative to that of Litecoin, your locked up LTC tokens will be doubled automatically. Your LTC tokens will be unlocked, and your $20,000 profit will be immediately sent to your wallet.
The Abra application ensures that you can invest in over 70 currencies but cannot own them. By doing so, Abra enables users to invest in multiple digital currencies without necessarily creating different wallets or manage separate keys. Abra creates a synthetic currency that is used on the application.
Synthetic currencies cannot be liquidated. Abra application is successfully running multiple-signature (multi-signature) contracts to ensure the efficient management of fiat, Bitcoin, and Ethers with no interruptions for over one year. The Abra application allows you to trade, transfer, buy and sell Bitcoin or Litecoin and also send these coins to any wallet you choose. For the people in the US, Abra application also allows users to liquidate their fiat currencies and then transfer to their respective bank accounts.
Also, the Abra application issues smart contracts to its users by signing contracts. To do this, Abra engages in the trading of cryptocurrencies with numerous exchange partners. These contracts or hedges is 100% risk-free. Abra makes a profit not from the hedging but from the large differences in price when users carry out trades or exchanges on the application.
Why was Abra Built on the Litecoin Platform?
Presently, Abra seeks to use the Litecoin platform majorly for almost its transactions. According to the development team of Abra, Litecoin was chosen after intensive and thorough research was carried out. The purpose of the research, according to the team, was to find a suitable platform that meets their criteria. Litecoin is a fast, scalable, secure, off-chain, and, on-chain. It’s also a low transaction and mining fee platform. Another reason why Litecoin was picked was due to its strict adherence to the Bitcoin’s core published roadmap. Also, the Litecoin platform is free of network outages, hard fork drama, and outrageous transaction fees.
The Abra development team knows that the Bitcoin is more secure than Litecoin. This means that Litecoin will offer lower mining fees and scaling costs for users. Also, Litecoin was chosen because it offers lower transaction fees and the recent Litecoin update provides even lesser fees. Each transaction on the Litecoin platform can potentially be less than 1 cent.
What it Means for Litecoin
Abra was primarily designed to solve all the complexities involved in investing in different cryptocurrencies simultaneously. For users in the US, before they can begin using Litecoin, they have to first obtain Litecoin. This technically means that if more people in the US decide to use Abra, it will also mean an increase in the total number of Litecoin users. Also, the use of Abra’s smart contracts will drastically limit the number of LTC tokens in circulation. The adoption of Litecoin by Abra also adds credibility to the Litecoin platform, and it shows that Litecoin is one of the best cryptocurrency platforms out there.
How Can Abra App Wallets be Funded?
Wallets on the Abra application can be funded either through direct bank wires or transfers or through the purchase of Bitcoins. Users who decide to fund through the purchase of Bitcoins will be required to input only their phone numbers.
Users can fund using a Philippines or an American account. American Express cards, Litecoin, Bitcoin, and Ethereum can also be used to fund the Abra application. Once the Abra application confirms your funds, you can immediately begin investing in over 20 cryptocurrencies and 50 fiat currencies.
How You Can Use Abra
For first timers, you have to download the Abra application from the apps official website. After downloading, you are expected to write down the private keys. Since the Abra application is a non-custodial app, users can access their funds anytime they decide.
The team behind the development of Abra seeks to primarily create a stable platform that will encourage the storage of fiat currencies as well as cryptocurrencies.
At the onset, Litecoin CEO Charlie Lee promised users on the platform a huge surprise. This surprise must have at first looked confusing to the general public. The introduction of Abra is good news both for the Litecoin platform and for the application itself. The app also seeks to add more cryptocurrencies. Also, it is important to note that Abra does not allow users to own these currencies. They can only trade or transfer them. As earlier mentioned, the Abra will also help increase the total number of users of Litecoin.