August 17, 2021

What is Terra Cryptocurrency (LUNA)?

 Terra (LUNA) is the 16th-ranked coin, according to CoinMarketCap at the time this article was written. Although seen as somewhat sinking compared to other cryptocurrencies, Terra (LUNA) has a fairly large community because of its potential for the long term.

Terra background (LUNA)

A blockchain project developed by Terraform Labs in 2018.

Its founders are Daniel Shin and Do Kwon. Shin currently manages an online payment service, CHAI. Kwon is a computer scientist who has worked with Apple and Microsoft.

Plays a role in strengthening newly launched cryptocurrencies or financial applications.

Terra: Or TerraUSD (UST), a stablecoin and decentralized algorithm created aimed at reducing the impact of native token instability due to other cryptocurrencies such as Bitcoin (BTC). Launched in 2020.

In addition to UST, Terra also has other stablecoins that are based on the South Korean won (TerraKRW), Mognolia tugrik (TerraMNT), TerraCNY, TerraJPY, TerraGBP, and others.

Luna: a utility coin that has two functions: 1/ Protect Terra from volatility 2/ Offer rewards to stakeholders. Launched in 2019.

The uniqueness of TerraUSD (UST) compared to other stablecoins

In the basic article of stablecoins by Intraday, there is a difference between three types of stablecoins and Terra meets the third feature, namely, stablecoin algorithm (algorithmic stablecoin).

If Tether (USDT) is synonymous as fiat-backed stablecoin or off-chain collateralized stablecoin, Terra coins are different because they are backed by LUNA tokens.

In short, this is it; if the price of UST increases above $ 1, the algorithm will use LUNA to mine more UST to reduce its price. But, if the price declines then it will convert UST to LUNA to return its previous price.

Terra Receipt (LUNA)

Maybe Terra (LUNA) is not popular in Malaysia and other countries but the acceptance of this asset in South Korea is very encouraging. One of the contributors to its popularity is CHAI developed on the Terra blockchain.

The average person likes to use this application to make purchases of various types of goods including movie tickets using the Terra cryptocurrency.

Terra usage also became more widespread when CHAI announced partnerships with Korea’s largest payment processor, BC Card, Korea’s largest convenience store, CU, Korea’s largest hospitality service, Yanojla, and Korea’s largest shopping mall, Shinsegae Duty-Free.

More interestingly, with the features available on Terra coins that are easy to exchange and a mission to popularize the crypto payment ecosystem, it is not impossible that the USDT and USDC will one day become irrelevant.

In fact, it will also facilitate complex payment systems including a network of credit cards, banks and payment gateways. This transparent ecosystem is also able to attract banks in Korea to accept Terra as part of their financial structure.

If crypto investors are interested in acquiring Terra (LUNA), it is better for DYOR to delve deeper into its background for the sake of a picture of the future of this crypto. You can get it on Binance, KuCoin, Huobi, and Bitfinex platforms.