WHAT IS TERRA? || 10% beneficiary to tron-fan-club

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INTRODUCTION

I will like to explain what terra is and Luna UST before it attack. It is unfortunate that Luna and UST experience a death spiral. Most of you would hear the word ecosystem and when you hear the word, what comes to your mind is nature where there are all kinds of animals that use each other to survive. You can also hear the word financial ecosystem where there are different kinds of people and organizations coming together to enable people to trade and save their assets. The crypto-financial ecosystem is just like the financial ecosystem.

WHAT IS TERRA BLOCKCHAIN?

Terra blockchain uses PoS which means you have to stake your coin to validate transactions and they concentrate on large payment transactions and also a good stable coin (UST).

TERRA'S PAYMENT PROCESSING

We all know that the traditional payment method like master card, visa, and American Express would charge nothing less than 3% but Terra caps fee is 1% but most of the time it is much lower than 1%.

STABLECOIN IS PART OF TERRA

You might say there is nothing special about Terra but what makes it special is the stablecoin. Terra uses a unique mechanism to make the price of their coin to be stable. As we all know that the price of bitcoin is not always stable and this makes people use it always. What terra wants to solve is the problem of the volatility of coins and that means you have $1,000 of terra today in your wallet, you can still have the same amount tomorrow. They achieve this stablecoin with a special algorithm that makes the price stable. They have a stablecoin for a lot of currencies such as UST, KRT, and EUT. Terra is different from Titan because Titan does not have any specific reason for people to hold the coin but Terra was created for all decentralized applications to use.

WHAT IS LUNA?

Terra ecosystem uses two coins which are Luna and UST. The developers use Luna to keep the price of UST stable. The Terra ecosystem uses Luna to help keep the price UST stable by incentivizing the holders of Luna to keep the price stable. When they see the price of UST is going higher, they would create more UST to bring the price down, and those the traded Luna to UST will get the new UST that was created. If the price of price UST drop below $1 and you can trade 1 UST for 1 Luna for a dollar.

USEFULNESS OF TERRA

Terra's objective was to create a fast transaction speed using stablecoin and the ecosystem have two different protocol which is Anchor and Mirror. The mirror protocol helps people to buy own a representation of other assets such mETH, mBTC, and so on.

The anchor protocol helps people to stake their coins to earn more coins and there is always a certain percentage rate to make people continue to use it. The bottom line is that the Mirror protocol brings more users to the ecosystem while the Anchor protocol keeps the user in the Terra ecosystem.

CONCLUSION

The Terra ecosystem comes from the money coming into the ecosystem and that means that as more investors are coming into the ecosystem the price of Luna will grow and vice viser. Terra is built on the Cosmos blockchain which lets it connect to a lot of blockchains. Sadly, Luna and UST experienced a death spiral.