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Founded in January 2018, Terra is an open source blockchain payment platform for algorithmic stablecoins, which are crypto that track the price of currencies or other assets. Terra blockchain enables users to spend, save, trade or exchange Terra stablecoins.
Terra protocol creates stablecoins that can track the price of any fiat currency, such as USD. It consists of two main cryptocurrency tokens – Terra and Luna.
Stablecoins are the main feature of the Terra protocol, which crypto assets can track the price of an underlying currency. Terra stablecoins can be used like fiat currency with blockchain’s added benefit including an unchangeable public ledger, instant transactions, faster settlement times and lower fees. The protocol uses the basic market forces of demand and supply to maintain the price of Terra. When Demand for Terra is high and supply is limited, the price of Terra will increase, and vice versa. This can ensure the demand and supply of Terra is always balanced.
Luna is used for governance and mining. It allows holders to pay network fees, staking, etc. Users can stake Luna to Terra blockchain miners which record and verify transactions on the blockchain and receive rewards from transaction fees as compensation.
Luna has the following features:
Terra has the following benefits:
There will be plenty of opportunities for Terra to take advantages of its cross-chain compatibility with other Cosmos SDK blockchains in the future, there is still room for Terra to expand and improve its user base.
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