Terra (Luna): cryptocurrency and project overview

People in the Asia-Pacific region are quicker to embrace innovation and are always eager to keep up with the times, rather than nostalgic about the past. That’s probably why there is such a high rate of economic development here. While Russians cannot even imagine their everyday life without paper money, and in Western Europe and the U.S. not everyone is ready to completely abandon cash, China is already introducing a state-owned cryptocurrency. And Chinese citizens are not shocked at all; they are already used to paying by phone.

In Southeast Asia, Terra, a blockchain project for e-commerce platforms, was launched two years ago and continues to operate successfully. It is not just another bitcoin competitor, but a whole algorithmic system with a unique mechanism for achieving exchange rate stability for domestic tokens. The features of Terra coin cryptocurrency we are going to tell you about.

What is Terra (Luna)?

Terra is a distributed network for everyday payments on a blockchain with two tokens, Terra and Luna, and a set of stabelcoins linked to different national currencies.

Terra (Luna) ecosystem

The Terra cryptocurrency, is both stable in price and growth-oriented. The second coin, Luna, plays the role of a wave cutter, taking on market fluctuations. If Terra falls in price, the system buys coins by selling LUNA and vice versa.

Cryptocurrency price volatility is a well-studied problem. Most cryptocurrencies, including Bitcoin, have a predetermined release schedule, which together with strong speculative demand contributes to sharp price fluctuations. The extreme price volatility of Bitcoin is a serious obstacle to its adoption as a medium of exchange or savings. Problems are exacerbated when the transaction takes longer, for example for deferred payments such as mortgages or employment contracts. Terra Protocol’s flexible monetary policy solves these problems.

However, price stability is not enough for widespread adoption. The buyer will not switch to the new currency if a critical mass of sellers is not ready to accept it, but at the same time there is no reason for sellers to invest resources and train staff to accept the new payment instrument if there is no significant buyer demand for it. Terra offers strong incentives for users to join the network with an efficient budgetary spending regime managed by the Treasury.

Let’s list the main advantages of the Terra blockchain:

Ability to run decentralised applications (dApps);
High speed of transaction processing;
Linkage to the traditional financial system;
Support for exchange rate stability through emission control.
Recognising regional differences in money, Terra aims to become a family of cryptocurrencies, each linked to major world currencies. The near-genesis protocol issues stable Terra coins pegged to the US dollar, euro, yuan, Japanese yen, pound sterling, Korean won and IMF SDR.

Terra (Luna) payment solutions

It is important that Terra currencies have access to common liquidity. For this reason, the system supports atomic swaps between Terra currencies at their market exchange rates. The user can instantly exchange TerraKRW to TerraUSD at the effective exchange rate of KRW / USD. As the Terra ecosystem adds more currencies, its atomic swap feature can be an instant solution for cross-border transactions and international trade settlements.

Since the price of Terra currencies in secondary markets is exogenous to the blockchain, the system must rely on a decentralised price oracle to estimate the true exchange rate.

Terra’s distributed network supports two off-the-shelf payment solutions:

CHAI, a decentralised gateway that supports synchronisation between bank cards and a cryptocurrency wallet.
Meme Pay service, for stable coin transactions.
A bank card holder can purchase tokens linked to one of the supported national currencies, such as the Mongolian tugrik, in seconds and, use them to pay for any product or service on the alliance’s e-commerce platforms.

The Terra (Luna) team and origin story

It all started more than two years ago, when South Korean e-commerce platform TMON managed to convince investors to allocate funds to develop Terra cryptocurrency.

The founders of the project are Daniel Shin and Do Kwon. The project was based on a method to encourage the rapid adoption of blockchain and cryptocurrency technology in e-commerce. The plan was to integrate the new payment tool into TMON partners’ websites. These included some pretty solid companies such as Woowa Brothers, Qoo10, Carousell, Pomelo and TIKI. Even the Binance exchange decided to do its part in funding the project. A total of almost $32 million was raised in the first round.

According to Binance Labs head Ella Zhang, Terra’s digital asset has great potential, primarily due to Terra’s extensive customer base. The creators of the cryptocurrency promised token holders low remittance fees compared to bank fees and flexible discounts at online shops. The coin appeared on exchanges in the spring of 2019; by autumn, the exchange rate had fallen quite significantly and remains stable to this day. The team is actively working on attracting new business partners and expanding the application of the payment network.

Terra (Luna) mining

The Terra ecosystem operates on the PoS (Proof of Ownership) algorithm. To activate Luna mining by running a full node, a deposit of LUNA tokens is required. The amount of transaction processing fee and the senjorage depends on the size of the bet.

If you don’t have the ability to run a network node, you can delegate transaction processing to others and receive a share of the profits. The project website https://terra.money/ has additional instructions for validators on best practices for securing the system.

Where to buy Terra (Luna) cryptocurrency, available exchanges

LUNA digital coins are traded on Binance, and there are 4 exchange pairs available:

LUNA/BTC;
LUNA/USDT;
LUNA/BNB;
LUNA/BUSD.

LUNA tokens can be exchanged for other crypto and 15 other exchanges. The BKEX, Coinone, Bithumb and Huobi Korea platforms support the pairing with fiat money (South Korean won only, KRW). But if you need to buy or sell LUNA quickly on a reliable exchange, we recommend going to Binance. A full list of exchanges and exchange pairs is available at https://www.coingecko.com/.

Terra (Luna) Wallets

At the time of writing, the only official wallet is the web interface https://station.terra.money/wallet. The developers of the application Lune.io have closed the project. Terra cryptocurrency is supported by Ledger hardware safe.

Conclusion

The Terra project has great potential. The payment network is already working in the online payment market of South Korea and neighboring countries. In the future, Terra could become one of the leading blockchain platforms for e-commerce.

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