Hey Publish0x community! Welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.
In this article we talk about more features of Terra!
In the last E&S article I introduced you Terra (LUNA) and I said that is a blockchain protocol that uses smart contracts, oracle systems and stablecoins to promote many blockchain-based applications. Terra's decentralized infrastructure brings different theories and concepts to DeFi and the cryptocurrency ecosystem. The protocol provides users with many stablecoins options by using a unique price stabilization algorithm.
Now let’s see some features of Terra.
- LUNA: LUNA is Terra’s native coin. It is used on the network as a collateralizing mechanism to ensure that the prices of stablecoins on Terra remain stable. Without the LUNA coin, there won’t be any staking on Terra.
- Stablecoins: Terra offers a variety of stable currency options, such as TerraUSD (UST), which is directly linked to the U.S. dollar. It also provides TerraSDR (SDT) that is directly linked to the IMF's SDR, TerraKRW (KRT) that is linked to the Korean currency (Won), and TerraMNT that is directly linked to the Mongolian Tugrik.
- Gas: Terra uses GAS to facilitate the execution of smart contracts on its network. This is a way to reduce spam transactions, and it is also a way to incentivize miners to continue to execute contracts.The use of GAS is prominent on blockchains like Ethereum, as users even choose to pay higher GAS fees to ensure that miners push their contracts before others on the network.
- Mirror Protocol: Mirror protocol allows Terra users to create different fungible assets (NFT) or “synthetics” These fungible assets track real-world asset prices and introduce the same to the Terra blockchain as a basis for smart contract blocks.
- Anchor Protocol: This is a protocol that enables holders of Terra stablecoins to get rewards on the network. These rewards come in the form of savings accounts interests because holders can make deposits and withdraw their coins when they need them.
Terra (LUNA) has brought many benefits to the market. Its decentralized and permissionless nature makes it an ideal choice for the digital economy. The network provides competitive programmable payments, logistics, and infrastructure designed to simplify the development of Dapps and stablecoins. Terra is about interoperability. The network is designed to run on multiple chains connected by Cosmos IBC. Currently, Terra runs on Ethereum and Solana. The developers have announced plans to expand their protocol soon to include other best performing blockchains.
Now let’s check something about Terra Proof of Stake and Staking!
Terra operates on the Delegated Proof-of-Stake concept. This concept is a technology-based democracy using a consensus algorithm for the voting & election process. The aim of using DPoS is to secure a blockchain against malicious or centralized usage. Terra uses DPoS to facilitate the approval of the transaction and the addition of blocks to its ecosystem by Validators. For any user to become a validator, he/she must hold a huge amount of LUNA. But if they can’t, users can still engage in staking for passive rewards.
If you've been following me for a long time, you'll already know that I'm a lover of staking. I have already done several articles about it that you can find in my profile. If instead you like more the video format, I leave you some links to some of my videos on YouTube where I talk about staking.
TRX Staking:
ALGO Staking
Terra users earn rewards by staking LUNA (native coin) in the ecosystem. For more info about how to stake your Luna and stack up rewards, check out this document: https://www.terra.money/docs/Luna_Staking_eng.pdf
With this second article about Terra we have discovered new things about Terra features, staking and PoS!
Next week I’ll introduce you a new cryptocurrency!
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