Review on Terra by francis fernandez
TERRA: breaking down the barriers between conventional payment systems and crypto trading
TERRA is a comprehensive ecosystem of payment mechanisms that allows secure transactions for the purchase of goods and services through the exchange of digital money and fiat money, due to the adoption of blockchain technology to generate financial operations of an immutable nature. Functioning:
The TERRA platform uses digital assets of stable value, whose price is connected to the value of a FIAT currency; to guarantee the stability in the price of cryptocurrencies used in the global payments ecosystem of the network; enabling stability between digital currencies and traditional money and breaking down the barriers between the cryptographic payment system and conventional payment mechanisms.
The chain offers a wide range of cryptocurrencies pegged to various FIAT currencies; such as the US dollar and even a group of currencies that have special drawing rights in the International Monetary Fund.
Token:
LUNA is the token used by the TERRA chain to guarantee the balance in the value of the stable digital currencies of its cryptographic basket.
LUNA grants its owners the right to present proposals and to participate in the voting system in the governance of the chain. Technology-Mining-Consensus: LUNA has an established maximum supply of 1,000,000,000 coins.
The network uses the mechanism of burning additional tokens when the cryptocurrency exceeds this limit, to guarantee its stability. In case of issuing new coins; the chain uses the Tendermint protocol together with the Proof of Stake consensus protocol, where LUNA counter holders stake their pieces as collateral for the validation of transactions and receive rewards in the same currency proportional to the volume of LUNA staked.
Holders of LUNA validating tokens can choose to delegate the function of validators to other nodes, sharing the rewards generated with them in this case.
Pros
- Allows to homologate digital money to FIAT money.
- It is a payment system that is not subject to third party intervention
- It is an open source platform
- It has a basket of stable value digital currencies
Cons
- There are no disadvantages in its use.
