terra luna cryptocurrency : Ultimate Guide to LUNA token

 

terra luna cryptocurrency : Ultimate Guide to LUNA token

Terra is a blockchain network for digital payments, which relies on several stablecoins of its coinage and, for the operation of its additional features, also on the LUNA token. It is one of the most profitable projects during 2021 and one of the most interesting, both for the world of cryptocurrency technicians and for those on the hunt for investments and diversification of their portfolios.

Starting as a rapid payments system, the network Terra has since included additional services, created in-house, that also enables the exchange via the Mirror platform of financial and real-world assets. In addition to additional services in development, which have not yet been disclosed and are named, for now, as Alice upgrades.

What is Terra (LUNA)

Terra is a network in blockchain that today offers the three primitives of the financial world: payment possibilities, investment possibilities (and exchange of securities), and savings provision. As will become clearer in our appointment, we are looking at one of the most complex systems we have ever reviewed within cryptocurrencyglobalnews.com.

Payments

The genesis of Terra and its token is in the e-commerce sphere. The company was founded by Daniel Shin and Do Kwon, Koreans who had already been involved in the creation of widely used payment systems in Southeast Asia and Korea and also in the development and founding of several e-commerce systems. With Terra, we can pay using various self-developed stablecoins, which have an immediately convertible counter value.

Savings

Through the Anchor system, we can lock some liquidity within the project to get returns. These are high returns compared to what banks can offer today, but still relatively low in the context of the cryptocurrency market. On a positive note, we can - here as on so many other networks - block sums in stablecoins as well, thus staying outside the natural fluctuations of crypto tokens like LUNA.

Investments

The same company that runs Terra also founded the Mirror system, which integrates an intelligent system for tokenization of financial and non-financial assets into the same blockchain. We can, for example, create a token that exactly represents the value of Apple Shares or any other publicly traded stock. The token will be exchangeable within the network and can be converted into cash at any time.

The system is thus integrated along with the three primitives of the economic system: that is, payments, investments, and savings, with smart and innovative solutions and making Terra one of the most interesting projects of 2021. However, we will also have to understand how, within this ecosystem, the related LUNA token is used, which has several modes of use.

Stablecoin

Relative to the payments system, Terra issues stablecoins that are pegged to the Korean national currency, the Mongolian national currency, and also the U.S. dollar. This is a system that shields against the volatility of cryptocurrencies and is of absolute stability while using an internal system based precisely on LUNA tokens. We will see in a moment how the system works.

How Terra Luna works

terra luna cryptocurrency : Ultimate Guide to LUNA token

Several aspects need to be considered when dealing with Terra Luna, that is, the different components that are integrated into this project today, components that function both in an integrated way and instead as stand-alone, in a design choice that allows everyone to use only the part that is useful for their needs.

App-based payment system

The basic aspect of the Terra (LUNA) system is the payments network, which is already very popular through the CHAI App in South Korea and MemePay in Mongolia. The system is ubiquitously spread, is accepted by many online shops, and already moves about $1 billion each year. There are more than 2 million active users, for a project that is booming. In this case, the Terra network acts as a decentralized intermediary, allowing stablecoins to be moved from one wallet to another. Simple and straightforward, as we are used to seeing in older generation blockchains.

Stablecoins

They play a central role at least until now. The price is pegged to the official price of the currencies with a free, arbitrage-based system. For every stablecoin token issued, there is a counter value in LUNA. As demand for Luna increases, arbitrage situations open up, which network participants have an interest in bringing back into balance because these are transactions with very easy gains.

In the case of higher demand for Luna, this is reflected in a relatively distributed gain on the network. In the opposite case, that is, in the case of the U.S. dollar, Singapore dollar, and korean Won, the losses are absorbed, equally, by the network as a whole.

The Mirror system

It is one of the first additions to the network and was developed by the same parent company that manages the Terra blockchain. The system makes it possible to create tokenized assets that represent the value of a financial asset outside the blockchain. To do this, we will have to deposit 150 percent of the counter value of the tokenized asset, which will be forever pegged to the token we created.

What happens when the hedge is insufficient: the token is destroyed and the counter value is liquidated to the holder at that time. Let's imagine that the Apple Shares we tokenized by obtaining a mApple token grow in value by 80% during the life of the token. When the threshold of 150% of the initial value is reached, the token is liquidated, i.e., destroyed, and the holder will collect the 150% counter value in UST, i.e., in the stablecoin that Terra still holds to the U.S. dollar.

Exchange the token: within Luna's network, it is also possible to exchange these tokens, allowing at least in theory the creation of a very efficient derivatives market with extremely lower transaction costs than OTC (Over The Counter) brokers. This aspect is one of the most interesting aspects of the Earth/Moon project, although in all likelihood it will have to attract regulatory attention in the near-term future, at least if it were to try to spread within the European continent or the United States.

The Oracles

To keep track of confirmed prices of financial assets that lie outside its blockchain, Terra integrates Oracles from another crypto project, namely Band, into its project. The prices are updated every 30 seconds and allow for an efficient, low transaction cost marketplace that is also useful for short-term Trading. Band's oracles are reliable, with information validated at multiple points, and can offer a concrete basis on which to develop integration between the external world of financial assets and the blockchains that interface with them.

The Anchor system

Closing the picture of features that are used by the Terra system we find Anchor, which is linked to other emerging cryptocurrencies such as Solana and Cosmos, as well as the Web3 foundation that also manages Polkadot and Kusama. This system makes it possible to offer dynamic lending, with prices moving automatically to match supply and demand. It's a good way to leverage the cash we make available to the network.

A system we have already seen elsewhere, but with Terra Luna, it is finally integrated, as we will see in a very short while, within an effectively vertical system that can at least in theory completely replace the functions of classical finance.

Upgrade Alice

There is also great anticipation about the announced Upgrade Alice, which is expected to include additional functionality within the blockchain. For now, the project remains top secret and it is unknown what the future holds. On cryptocurrencyglobalnews.com we will not fail to keep our readers updated on this specific project, which could add  a layer of functionality to a project that, it should be clear as of now, offers vertical integration capable of replacing, for individuals and businesses, a good part of banking services.

What are the main features of the project?

terra luna cryptocurrency : Ultimate Guide to LUNA token

There are several interesting features of the project that need to be considered, both by those who would like to start developing within the blockchain and also by those who are deciding whether or not to invest in this specific token. Here we will look at some of the obvious consequences of the features that this system makes available to its users.

Decentralized trading

When everyone can create their  derivative - albeit in 1.5:1 form - the possibilities for effectively decentralized trading multiply. We are not trading the actual ownership of the stock, but a token representing it. The system is self-liquidating and allows us to be assured that we will always have the counter value to protect the token we created or bought.

Fractional trading

Nothing prohibits us from also creating tokens that represent a fraction of the value of the whole stock. Is Amazon's stock worth more than $3,000? We can decide to create a token that is worth 1/10th of the Amazon stock and commit significantly lower amounts. Such a system, which closely mirrors that of CFDs, can be useful in making markets much more democratic. Without there  being a middleman among other things-and therefore with lower costs and with the possibility of being certain of the security of the trades.

Payments: an alternative system to cards?

terra luna cryptocurrency : Ultimate Guide to LUNA token

Those who have been following cryptocurrency for some time will not be surprised by what Terra is doing with its Luna token and the stablecoins integrated within it. Several blockchains have already reached this milestone. However, few have penetration, albeit geographically highly concentrated, like Terra. Which is already integrated into two widely used payment apps. Of course, we are talking for the moment only about Singapore, South Korea, and Mongolia to have a considerable level of use. But the project is still young and technically budding. There is plenty of room to grow.

Centrality in the ecosystem

Terra Labs executives have realized a fundamental aspect of the cryptocurrency ecosystem: collaborating is more interesting and profitable than waging war against each other. The partnership with Solana and the Web3 group speaks volumes about the overwhelmingly positive attitude this project has toward neighbors who, in broad strokes, might even seem like competitors. But this is also the only way to get ahead: to create networking advantages with projects that are on the same wavelength.

Project insights.

Those who need further technical insights into the workings of the Terra network and its LUNA cryptocurrency can find ample documentation directly on the project's official website and by also resorting to the technical papers describing its operation.

WhitePaper

This is the starting point for learning more about any type of cryptocurrency. Even in Terra's case, it describes in great detail-and perhaps more for those with technical and developer skills-how to approach this project, which remains very complex. Also worth considering is reading the documentation on Mirror, which is the system integrated by Terra Labs themselves for tokenization of financial and non-financial assets.

Official site

On the official terra. money website we can find more commercial information about using the network and related cryptocurrency. There are also plenty of updates on the website about the commercial agreements and the possibilities of using the system, which today is mainly active in the Far East, South Korea, and even Mongolia, but which aims, through its latest features, to gain an important space in the virtual world as well, and therefore also in Europe and the USA.

What will be the future of Terra LUNA?

terra luna cryptocurrency : Ultimate Guide to LUNA token

The future of Terra depends on several factors, which must be analyzed separately to understand what the true commercial scope of the project may be. Indeed, we have in the same network a payment method, a market for tokenized assets, and also a particularly high-performing blockchain.

The payments system

Terra's founders were, in the past, founders of major e-commerce entities in Korea, and this offered a concrete base on which to develop their further projects. Today in both Mongolia and South Korea, stablecoin payments offered by Terra and Luna are widely used-covering as much as 1.5 percent of electronic transactions in Mongolian territory. Further commercial expansion, including into other countries, would mean for the future of Terra and the LUNA token a great deal of commercial development.

Mirror

Here the competition is certainly fiercer. What do we mean by that? We mean that several systems are aiming at tokenization of financial assets, although the solution offered by Mirror through Terra is technologically very advanced. The system is fully derivative and also has regulator risks included. But if it were to catch on, it would make this network even more important on the international scene.

Anchor

It is the paid savings system at the Earth ecosystem eternal (LUNA), which again has to contend with several equivalent systems, which could offer higher salaries. It should already be clear to almost everyone, however, that in reality, Terra's system is to be considered in combination with what is offered by Mirror and the payments system, for a complete ecosystem that offers everything we are used to seeing in classic banks.

Reliability of Terra Labs

At least for the time being, Terra Labs has proven to be very reliable. It has proven to follow the same boundaries it has set for itself and to have proper Governance. However, for the future development of the project, it will be necessary for these assumptions to be confirmed. The struggle and competition are fierce in the cryptocurrency industry - and Terra will have to try to emerge with top-notch management.

Terra LUNA Blockchain

Terra and Luna's blockchain protocol is independent and PoS-like. Therefore, it does not require the use of computing power and large amounts of energy to secure the entries of new transactions. The LUNA token is also paid to those who care to offer their resources to validate transactions, in a kind of light mining in which cryptocurrency is a premium. The system is based on the Tendermint protocol, in which miners stack the token to receive rewards.

The other projects such as Mirror and Anchor are integrated with the central blockchain and are also potentially compatible with other projects, although they then use Terra's blockchain to be resolved. This is certainly an innovative blockchain that can now offer cutting-edge solutions, low-cost transactions, and almost endless integration possibilities.

Terra Luna Wallet

For Wallet, Terra Luna also uses a proprietary version  that can be conveniently downloaded from the official website. There is no need to install anything because we will also be able to use the official Google Chrome extension, which in the style of MetaMask allows us to have everything at the browser's fingertips.

Alternatively, you can go ahead and download Terra Station directly to your PC, for both Windows and Mac operating systems. Self-installed files are also available for Linux kernel operating systems. It is also possible to install on both Ledger Nano S and Ledger Nano X the software needed to safely store one's LUNA tokens. This is a choice that should be considered preferable by those who want to make accumulated tokens unreachable by outsiders (and even by malicious parties).

Earth (MOON) Mining

terra luna cryptocurrency : Ultimate Guide to LUNA token

Mining Terra (LUNA) is not possible. The monetary base is managed by the company that owns the network, through a complex balancing system between tokens generated and tokens that are instead destroyed through transactions. If we also have good cryptocurrency mining systems available, we will necessarily have to turn to other types of products.

Bitcoin and Ethereum-at least until the latter moves to a system fully based on PoS algorithms-are the two ideal candidates. With Terra (Moon) miners are out of luck because the system does not provide for the old cryptocurrency creation mechanisms. We also remind our readers in this section that the LUNA tokens were pre-mined and sold privately, without an ICO. According to several sources, it is also relatively difficult to tell how many were actually produced and sold.

Earth LUNA Opinions and Reviews

We collect in this section of our guide to Earth and MOON additional insights, which can help our readers understand more, as well as find a way to be part of the community, but also dispel doubts about how the project works as well.

TERRA Thematic Forums & Social

Here we have collected the best thematic forums and socials dealing with Earth/Moon, i.e., places to go and personalities to follow in order to stay up-to-date on this specific project. A selection that unfortunately, for the moment, includes only sources in English. The project is still little followed in Italy and this is also reflected in our selection.

Reddit /r/TerraLuna

This is the first place to go if and when we want to take more interest in the project. The subreddit, this is the technical name, allows to confront  a lively community that at different levels is active in the project. Great discussions and also a very welcoming atmosphere towards newcomers.

Investing.com

Terra Luna is also followed, in terms of quotes, on the popular Investing.com website. As is always the case with the assets we find listed on this site, a Chat/Forum section is available, through which we can interact with other enthusiasts, experts and investors.

Bitcointalk

Even on the world's leading cryptocurrency forum, discussions about Terra Luna happen, and in any case, new threads can be activated in the altcoin section. It may not be the best and there are fewer enthusiasts than the first two we mentioned-but it is still a forum to follow if we want to learn more about the entire cryptocurrency ecosystem.

Terra Pros and Cons

When we talk about Terra and the related token we are talking about an entire ecosystem, which aims to replace, although still geographically concentrated in reality, the classic services of finance. There are pros and cons to this project, which obviously cannot meet everyone's needs and may be better or worse positioned in certain areas than other realities in the blockchain.

Pros of Earth (MOON)

terra luna cryptocurrency : Ultimate Guide to LUNA token

VERTICAL SYSTEM: When we talk about Terra we are turning our attention to a system that is effectively vertical, offering within the same ecosystem payments, modes of investment,and  remuneration for money deposited. There are few systems today that can offer such a vertical and integrated approach, a sign that we are looking at a project, at least in concept and early applications, that is innovative.

STABLE COIN: There are several on the market, although the system set up by Terra could be decidedly smarter, with fewer custody costs and less risk. For many as the Earth and Moon ecosystem jumped, so would the value of stablecoins. Which is technically true. But wouldn't it be exactly the same with systems like USDT or Tether as well?

MIRROR: This is a very interesting system and one that could have a huge scope, especially for decentralized finance. The volumes traded on this kind of network are still relatively low, but everything suggests that there will be, in the future, a commercial expansion of the project.

Against Earth (LUNA)

MONETARY CONTROL: The initial spread of tokens has not been crystal clear, and this can be a problem, at least for those who want to interact with the blockchain and fully transparent systems. Overall, the project is much less vertical than it might seem. The founders-and their business enterprises-are heavily involved in at least the payments industry.

Final Thoughts

Terra (LUNA) is one of the most interesting projects we have had the opportunity to explore in-depth on the pages of cryptocurrencyglobalnews.com. A complex project that is taking several branches and aims to become a complete ecosystem, with a focus on decentralized finance.

Terra (LUNA) seems to have the capabilities to establish itself within the world of cryptocurrencies and DeFi, also having behind it a top-notch commercial organization, which is already prominent, in the Far East, in terms of handling digital payments.

LUNA, the benchmark token, will increase in value as volumes are traded on the various networks, while losing centrality, at least in terms of integrations with Anchor and Mirror, which rely more on stablecoins instead.

A bet, on this token, can be as risky as it is rewarding, especially for those looking for something more to diversify their cryptocurrency investment portfolio.

Terra LUNA Coin FAQ: common questions and answers.

terra luna cryptocurrency : Ultimate Guide to LUNA token

What is Terra / Luna?

Terra is a blockchain ecosystem that allows you to make payments, receive remuneration from staking, and also to tokenize financial assets. It is very popular as a means of payment in the Far East, with good volumes of usage in South Korea as well as in Mongolia and Singapore.

Is it worth investing in LUNA today?

It is growing very rapidly in commercial terms and continues to incorporate new and useful features. The outlook on this specific token is optimistic, especially in the medium and long term. It is, however, a high-risk investment.

What is LUNA used for?

It is the token that is used within the Terra network for basic functionality and also counterbalances in the value of the stablecoins that are issued on the blockchain of the same name. A complex monetary system governs its creation and destruction.

What is Terra used for?

It is the overall blockchain, which today, in addition to payment systems, is also integrated with Anchor, the paid staking system, and also with Mirror, which is the system that allows tokens to be created on the blockchain that represents assets outside the system.

Does Terra (LUNA) have a future?

In our opinion, yes. The project is still expanding and continues to integrate new systems and especially new features. It is highly regarded within the cryptocurrency ecosystem and is also in collaboration with Solana, Polkadot, and Kusama.

Is LUNA a risky token?

Yes. The great growth in value it has had since early 2021 should not be automatically translated into a prediction. We are looking at an altcoin in its own right, albeit backed by a significant commercial network and with already several areas of concrete use. This is not an investment suitable for those who do not want to take risks of any kind.

Is LUNA overvalued?

Not for the time being. However, the price is regulated by chain exchanges, and we have fixed counterparties against which tokens can be traded to U.S. dollars and even other types of currencies. The system would not appear to be, at least for the time being, overpriced relative to its real substance.