Terra is a PoS based decentralized network with currently more than 100 validators running the full node and securing the network. It’s a smart-contract enabled blockchain with minimal transaction fees, thus offering newcomers to interact and participate without worrying about enormous gas fees.
Terra is rapidly innovating the digital payment system by leveraging its algorithmic stablecoins with instant cross-border payment settlements and minimal transaction fees. The team of Terra protocol believes that an elastic money policy is the only feasible solution available to solve the need for stablecoins in the crypto ecosystem. The team also believes that only a strong fiscal policy can drive innovation in the crypto ecosystem.
What is Luna Coin?
Luna is the utility, governance, and staking token of the Terra ecosystem to secure the stablecoins by absorbing the volatility, thus ensuring Terra stablecoins don’t lose their peg. Luna coin absorbs the volatility for Terra stablecoins by leveraging an elastic supply that fluctuates as per the demand and supply of stablecoins.
Terra is a PoS (Proof of Stake) blockchain and uses Luna as its staking token. Therefore, users can stake Luna coins to secure the network as well as earn the block rewards. Luna is a staking token, thus the transaction fees on the Terra network are charged in Luna coins that are rewarded back to stakers.
How does Terra Luna work?
The Terra network is built using the Cosmos Software Development Kit (SDK). As mentioned earlier, it leverages the Tender mint Proof of stake (PoS) consensus mechanism. The terra founders introduce cosmos SDK to allow builders to construct and launch blockchain purposes shortly and efficiently.
Let’s get to the working of the Terra blockchain network. Basically, Terra’s working mechanism burns Luna coins to mint new stablecoins for the growing demands of their stablecoins. Likewise, if the demand for stablecoin falls, the mechanism automatically burns stablecoins to mint Luna coins. Thus absorbing the price volatility through Luna by expanding or contracting the supply of stablecoins and keeping the price of stablecoins pegged.
At the start, Terra’s network started with a total supply of 1 billion Luna coins, and currently, the circulating supply of Luna coins is less than 450 million. Meaning Luna coins have a deflationary supply, suggesting a price increase in the coming weeks, months, and years.
Key Characteristics of Terra Blockchain Network
Terra blockchain network offers three key characteristics placing it among the most promising blockchain networks. These key characteristics are:
Programmability:
Terra is a smart-contract-enabled blockchain and these smart contracts can be written in languages such as Rust, Go, and Assembly script. It’s a permissionless network thereby allowing anyone to build their applications, money markets, saving protocols, and more on its blockchain network.
Composability:
With the latest Columbus 5 mainnet upgrade, Terra blockchain has opened the gate for inter-blockchain communication in a revolutionary way. With the Columbus-5 update, the Terra blockchain will leverage the Cosmos IBC (Inter Blockchain Connectivity) feature to enable seamless movement of its stablecoins to various other blockchain networks such as Polygon, Fantom, Solana, Avalanche, and more.
Self-Adjusting Monetary Supply:
One distinct key feature of the Terra ecosystem is its self-adjusting monetary supply policy. With the elastic supply of its utility token Luna which is rapidly burning to keep up with the growing demand of its stablecoins, Terra blockchain is a decentralized reserve bank in itself.
Top Applications in Terra Ecosystem
Since it’s a permissionless blockchain network, Terra is drawing huge demand from builders and developers to create innovative decentralized applications on top of its network. Some of the most innovative and well-known applications built on the Terra blockchain are:
- • Anchor protocol:
Anchor protocol is a low volatility saving mechanism offering a fixed 20% interest on Terra stablecoin UST. Anchor protocol has revolutionized the world of DeFi by offering high-interest rates on stablecoins without any volatility risks.
- • Mirror protocol
You can create simulated assets on the terra smart contract blockchain. It allows traders around the world to invest in synthetic assets without the hassle of going through the tricky process of KYC and brokers. Thus allowing investors to gain price exposure to stocks, commodities, other traditional assets with on-chain transparency and tokenized assets.
Where to buy Luna token?
Luna token is the native exchange of the Terra platform. It is a staking and governance token where it equals the value of expansion with the Terra Economy.
Recently, Luna has witnessed an incredible profit rise to about 30.1% in the weekly chart. In the yearly chart, users find the token to be profitable at the rate of 8794%. Terra already has a lot of partnerships, while its strength lies in tokenomics. The main thing that makes Terra unique is its extraordinary price history in the past years. Terra is very much profitable, especially if you’re investing for a long period.
You can buy Luna token on these three exchange platforms:
- • Binance: Binance is a large and well-known cryptocurrency exchange platform. The main thing you benefit from purchasing Luna tokens here is the lower exchange fees.
- • Gate.io: Gate.io is a reputable platform that has a large number of altcoins, including Luna.
- • BitPanda: they offer an easy way to purchase Luna. They only accept the exchange of Luna in Europe.
Other platforms where you can buy Luna:
Conclusion
In essence, Terra is a fast, stable, and decentralized blockchain network with a perfectly aligned incentive mechanism and strong community. It is poised to rank among the top five blockchain networks as per the market cap leaderboard.
Terra’s native token Luna has a promising outlook and a promising future with a great price prospect.
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Written by: Narender Charan
