What Is Terra (LUNA)? A Beginner’s Guide
Terra is a digital currency and blockchain platform enabling a new era of decentralized payment networks and open financial infrastructure. Terra, through its native currency LUNA, is helping to revolutionize global finance by providing a platform for developers, entrepreneurs, and everyday users to access financial services without the need for a bank account, credit card, or other financial institution. This guide will explore what Terra is, how it works, and why it could be the future of global payments.
Terra is the world’s first Stablecoin Payments Platform. It is the brainchild of legendary investor Tim Draper, who made an early investment in the platform when it was first launched in 2018. Terra is designed to foster innovation around global payments, providing enterprises, developers, and everyday users with a single, unified platform for accessing financial services.
The platform is powered by LUNA, a decentralized stablecoin, and the Blockchain of Real-World Assets (BRWA), a public ledger of digital assets. By connecting LUNA to BRWA, Terra enables users to access a platform that can securely and instantly transfer real-world digital assets such as fiat currencies, tokens, and commodities without requiring an intermediary.
The Benefits of Terra
There are many benefits to using Terra’s digital platform. Here are some of the main advantages it provides:
Secure and Low Fee Transactions – With Terra, transactions are secure and fees are virtually non-existent. Transactions are verified and stored on-chain, ensuring secure, trustless transactions and providing users with peace of mind that their funds will arrive exactly as planned.
Fast Settlement – Terra transactions are processed quickly and securely, allowing users to instantly complete transactions across borders and enjoy low processing fees.
Coin-Based Platform – Terra is the first payment platform of its kind to use coin-based transactions, meaning users can send and receive funds directly from and to any coin-enabled wallet. This eliminates the need to use intermediaries, resulting in simpler and faster payments.
Global Reach – Terra is powered by LUNA, a global, open-source platform with a network of miners, node operators and validators all around the world. This ensures that Terra users have access to local and global markets without the need for regional interchanges or existing banking relationships.
How Terra Works
Terra is the brainchild of Tim Draper and the result of his vision to bring the world of digital assets onto the global stage. Terra works by connecting the LUNA digital currency to the BRWA blockchain, enabling a secure, trustless, and global transfer of digital assets.
To understand how Terra works, let’s look at how it handles transactions. When a user sends a payment on the Terra network, the LUNA currency is used as a bridge between the two users. The LUNA currency is pegged to, and moves in tandem with, the underlying risk-free asset that it’s connected to, ensuring that its value remains stable at all times.
The second part of the process is the BRWA blockchain, which acts as the mechanism for storing and verifying transactions on the Terra network. BRWA is a public blockchain that ensures all transactions are securely and immutably recorded on the ledger. This ensures that all transactions are secure and that users can be sure that their funds will arrive as planned.
No Intermediaries Required
One of the advantages of using Terra is that it does not require the use of intermediaries. With Terra, users can send and receive digital assets directly from their wallets, eliminating the need for middlemen such as banks, brokers, or third-party payment processors.
This provides users with greater control over their funds, as they are not relying on a third-party service to manage or process their transactions. Moreover, the lack of intermediaries reduces transaction and conversion fees,owing users to enjoy lower fees and real-time access to their funds.
Combining these two benefits, Terra is able to offer users a fast, secure, and cost-effective platform for global payments.
Terra Network Token (Luna Currency)
As mentioned above, Terra is powered by its native currency, LUNA. LUNA is a decentralized blockchain asset that is tied to the underlying risk-free assets in the BRWA blockchain. By pegging its value to the underlying assets, LUNA provides users with a stable and reliable currency for storing and transferring value on the Terra network.
LUNA is essential to the Terra network in several ways. First, it is used to confirm and verify transactions. LUNA miners process transactions on the network and earn fees in the form of new LUNA tokens.
Second,LUNA serves as the base currency for all of the digital currencies and assets that can be transferred on the Terra network. Finally, LUNA serves as the bridge asset for converting any fiat currency or commodity into a digital form that can be used for global payments on the network.
Terra is the world’s first Stablecoin Payment Platform, empowering users with a fast, secure, and cost-effective platform for global payments. Through its native currency LUNA, Terra connects the world of virtual financial assets, providing users with a single, unified platform for accessing financial services.
The platform is powered by LUNA, a decentralized stablecoin, and the Blockchain of Real-World Assets (BRWA), a public ledger of digital assets. Users can access the global network of Terra without the use of intermediaries, providing them with greater control over their funds.
With its innovative features and decentralized model, Terra is revolutionizing the way payments and financial services are accessed on a global scale. By removing the need for middlemen, Terra is helping to bring financial inclusion to the world.
