Cryptocurrencies are becoming more popular every day thanks to their many benefits. Developers are coming up with new projects to offer users better choices that fill some of the gaps left by the existing projects. Terra blockchain is one of the most innovative crypto projects and it is taking the industry by storm as many people are adopting it.
What is the Terra blockchain?
In simple terms, Terra blockchain is a public network that employs several algorithmic decentralized stable coins as the means to power a revolutionary ecosystem with great accessibility to the general public.
For the Terra blockchain, there are two major foundations—oracle voting and open market arbitrage—that create stable coins that allow users to trade, save, spend, and swap their stable coins on the network. And due to these pillars, the blockchain is a leader in the stable coin crypto market.
Which are the Tokens that are the lifeblood of the Terra blockchain?
Terra and Luna are the two main tokens through which the Terra protocol runs. Perhaps, you are wondering just what Terra and Luna are? Well, Terra plays a crucial role in the blockchain because it is the stable coin used to track the prices of fiat currencies. Conversely, Luna is the native coin that absorbs the volatility in the price of the stable coins in the network.
How does Terra blockchain check the inequality in the financial system?
The typical financial system seems to promote the disproportional distribution of wealth where the rich get richer and the poor become even poorer. Unfortunately, even the middle class is no better because they are also likely to get poorer. Luckily, the Terra blockchain is a perfect tool to solve this issue.
So, how does the Terra protocol help sort this problem? The protocol endeavors to do away with the centralization of the financial system. As it is, the financial system is in the hands of centralized institutions such as central banks, the Federal Reserve System, and large corporations. Due to centralization, people have perfected the manipulation of the system using money and the result is the rich becoming richer and the poor remaining poor.
However, the Terra blockchain intends to remove the centralized institutions by creating a decentralized financial system. You can check out the Loop to learn about the Terra protocol and its working, benefits and so much more.
Is Terra Blockchain a company?
To clear the air, Terra is not a company, but it is classified as DeFi, which means decentralized finance. In the big crypto market, DeFi is just a branch. And if you wonder who is behind the Terra blockchain, Terraform Labs is the entity that created the blockchain.
However, it’s worth noting that Terraform Labs is in no way Terra’s central entity, and, it doesn’t own the blockchain. They encourage other protocols or projects to expand the Terra blockchain use-case. Terraform Labs appreciate that, as an open-source project, growth in its use-cases is a win for all, so the more projects on it the better for all.
What are the blockchain’s key goals?
The main goals of the Terra protocol are to facilitate easy access to the cryptos for the masses and offer stability to the cryptocurrency industry. It creates stability by using a system of stable coins, the main one being TerraUSD (UST) the value of which is pegged to the USD.
Conclusion
The Terra blockchain is just one fast-expanding crypto protocol. It is easy for new projects to build on and has a welcoming community. You need to consider using the blockchain, say for trading, and other things as you explore the crypto industry.
