Terra advertises itself as a next-generation blockchain payment network driven by its own LUNA token and interlaced with stablecoins. Terra is a layer-1 blockchain protocol with smart-contract capabilities that functions as a payments-focused fintech ecosystem utilizing algorithmic stablecoins, the value of which is kept stable by internal algorithms.
Terra is a blockchain technology that powers price-stable global payment networks with fiat-pegged stablecoins. Terra, according to its white paper, integrates the market stability and widespread use of fiat currencies with the censorship resistance of Bitcoin (BTC) to provide quick and economical transactions.
Terra’s creation started in January 2018, and the mainnet launched in April 2019. It now provides stablecoins tied to the US dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies, with more alternatives on the way.
The native token of Terra, LUNA, is used to keep the price of the protocol’s stablecoins stable. Holders of LUNA may also submit and vote on governance ideas, thereby making it a governance token.
What is Terra [LUNA]?
Terra USD is exclusively protected by smart-contract algorithms and the LUNA currency, not by US money. USDT, the largest stablecoin by market cap, on the other hand, was advertised by its operator, Tether, as being backed by US dollars. Tether was fined US$41 million for making false representations about its reserves when it was determined that USDT was backed largely by commercial paper, certificates of deposit, and US Treasury bills.
Terra is based on the Cosmos SDK and employs a delegated proof-of-stake consensus, which is guaranteed by decentralized validators that resolve transactions for a fee. Validators and stakeholders can also vote in the network consensus, with voting power proportionate to their stake allocated. To protect the network, the 130 active validators with the most LUNA tokens are picked.
Terra’s stablecoins are computational stablecoins, which means that the protocol is built on algorithms to achieve price stability. The value of UST, for example, is equal to $1 USD and should remain consistent owing to the LUNA token. When the UST supply falls below $1, LUNA increases the supply to keep the UST pegged to the dollar.
Who Are the Founders of Terra [LUNA]?
Daniel Shin and Do Kwon created Terra in January 2018. The initiative was intended as a method for the two to accelerate the adoption of blockchain technology and cryptocurrencies by focusing on price stability and usability. Kwon was named CEO of Terraform Labs, the firm that created Terra.
Shin co-founded and led Ticket Monster, often known as TMON, a large South Korean e-commerce site, prior to inventing Terra. He went on to co-found Fast Track Asia, a startup incubator that helps entrepreneurs turn their ideas into fully operating businesses.
Anyfi, a firm that provides decentralized wireless mesh networking technologies, was created by Kwon and he served as its CEO. He has also worked for Microsoft and Apple as a software developer.
What Makes Terra Unique?
Terra claims that its usage of fiat-pegged stablecoins distinguishes it from the competition by combining the borderless benefits of cryptocurrencies with the day-to-day market stability of fiat currency. It maintains its one-to-one peg thanks to an algorithm that adjusts stablecoin supply in response to demand. It does this by motivating LUNA holders to trade LUNA and stablecoins at lucrative exchange rates as needed to extend or reduce the stablecoin supply to meet demand.
Terra has partnered with a variety of payment systems, primarily in the Asia-Pacific area. Terra announced a collaboration with Chai, a South Korean mobile payments app, in July 2019 that would see transactions made through the app on e-commerce platforms processed over the Terra blockchain network. The merchant is charged (on average) a 2 percent–3 percent fee for each transaction.
Terra is also backed by the Terra Alliance, a collection of businesses and platforms pushing for Terra’s acceptance. In February 2019, the firm reported that the partnership included e-commerce platforms from ten different nations, with a combined user base of 45 million people and a total merchandise value of $25 billion.
Where Can You Buy Terra [LUNA]?
Terra’s native token, LUNA, is accessible for trading against fiat currencies, stablecoins, and other cryptocurrencies on multiple cryptocurrency exchanges, including Huobi, Bitfinex, and Upbit.
Frequently Asked Questions
How Is Terra Secured?
The Terra blockchain is secured via a Tendermint-based proof-of-risk consensus process, in which LUNA token holders stake their tokens as collateral to confirm transactions, with payouts proportional to the amount of LUNA invested. Token holders can potentially choose individuals to validate transactions on their behalf and share in the profits. Terra also provides validator nodes with further advice on how to help maintain network safe.
Can I Buy Terra [LUNA] With Cash?
No. There is no direct method to purchase LUNA using cash. You can, however, utilise markets such as LocalBitcoins to first acquire BTC, and then complete the remainder of the procedures by moving your BTC to the appropriate AltCoin exchangers.
Are there any quick ways to buy Terra [LUNA] in Europe?
Yes, in reality, Europe is one of the easiest countries to acquire cryptocurrency in general. There are also online banks where you can create an account and send funds to exchanges like Coinbase and Uphold.
On what factors does the price of the Terra [LUNA] Depend?
Exchange inflows and outflows, technical and fundamental changes, the news cycle, and the overall economic climate are all variables that impact LUNA price and market cap.
Terra Official website – https://terra.money/
Terra Twitter – https://twitter.com/terra_money
Terra Medium – https://medium.com/terra-money
Terra Reddit – https://reddit.com/r/terraluna