Should You Launch On Terra? LUNA: Top-5 Blockchains In 2022 (5/5)
An analysis of how Terra became a top blockchain, and what token creators should expect in 2022 and beyond.
Terra (LUNA) is an open-source blockchain payment network for algorithmic stablecoins that monitors the price of fiat currencies (a government-backed currency like USD) or other assets in a steady manner. Its mainnet was launched in April 2019.
The Terra crypto ecosystem powers retail transactions with minimal fees, rapid settlement, and frictionless cross-border exchange, all possible thanks to stablecoins.
Terra’s developers, Daniel Shin and Do Kwon intended to build a coin with less volatile pricing than cryptocurrencies like Bitcoin while still having ample space for growth.
Terra’s stablecoins establish price stability by utilizing Luna as collateral, similar to how fiat money used to do so by using an underlying asset like gold.
Let’s take a look at some of Terra’s main pros and cons.
- Terra Station (web extension that gives access to dApps powered by smart contracts on the Terra blockchain) has a highly efficient and easy-to-use user interface and mobile app, making it developer-friendly. The Terra SDKs make it simple to interact with a Terra node programmatically using popular programming languages (like Java and Python) to create apps.
- Due to its convenience and great demand, Terra caters to the stablecoin market. They are easy to utilize to avoid market volatility and protect one’s investment. The value of UST, for example, is equal to USD 1 and should remain consistent thanks to the LUNA token. When the UST supply falls below USD 1, LUNA increases the supply to keep the UST pegged to the dollar.
- Terra Token offers interoperability as it works across many blockchains (like Ethereum and Solana), allowing users to seamlessly transfer assets from one network to the other.
- Terra uses Tendermint delegated Proof-of-stake (PoS)…