The cryptocurrency market surprises us with new, interesting and innovative cryptocurrencies. This is why we are now trying to answer the question about what is Terra (LUNA) crypto. This is a virtual currency that became very popular in recent months and it surpassed other coins such as Litecoin (LTC). Thus, it is now playing an increasingly important role in the crypto economy.
In this guide, we are going to share with you all the information you should have about the Terra network, and how this protocol works. We would also tell you what’s the main problem in the forex market and how Terra wants to change and improve it.
Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional. financial advisor.
The forex market is one of the largest in the world. But it is also inefficient in some cases. People in different jurisdictions use diverse fiat currencies. In the United States the U.S. dollar (USD), in the Eurozone the Euro (EUR) and in United Kingdom the pound (GBP).
This creates a problem as people that work in different countries and that want to exchange these currencies have to deal with price fluctuations and other issues such as lack of payment support for their currency.
Although many proposed cryptocurrencies as a solution, these digital assets fluctuate on a daily basis and they are not good for people that do not want volatility. Instead, stablecoins could offer better solutions. Despite that, they are still far from ideal, as these stablecoins are usually pegged to the U.S. dollar rather than other currencies. So the problem persists.
But there is a possible solution to these issues. We are talking about Terra (LUNA).
Terra is a blockchain network that is powered by an increasing number of stablecoins. Each of these stablecoins is pegged to a local currency, making it possible for users to have access to digital currencies pegged to their local currency.
For example, there could be stablecoins pegged to the EUR, GBP or USD, and many others as long as there is a person or company interested in creating a stable currency on the Terra network.
Terra stablecoins are easy to spend using very low fees and without bank limits. This is especially useful for those that want to transact currencies internationally without hidden costs and without having to deal with banks. That’s how easy it is to use the Terra blockchain network.
Users can hold any stablecoin on this blockchain network as desired. There are no limits to users’ decisions. That’s how simple it works. Moreover, the blockchain is safe, secure, and scalable.
At the moment, there are different companies and firms using Terra stablecoins. Terra stablecoins can be sent anywhere around the world and without fees, instantly. Nowadays, Korean retailers, banks and convenience stores are now working with the Terra network to get access to a better stablecoin linked to the Korean Won (KRT).
In Mongolia, for example, they are also using the Terra blockchain with a local stablecoin that lets them pay for goods and services in the country. This is how easy the integration with the Terra network is. Sometimes, users do not even realize they are using a stablecoin.
In this way, users do not have to rely on banks and centralized financial institutions to hold their money. Additionally, users could eventually use different Decentralized Applications (DeFi) apps and lend their coins. This lets users earn interest on their funds, something that became completely difficult nowadays with interest rates below zero.
The LUNA token makes it possible for each stablecoin to be really stable thanks to those users that stake the LUNA token. For every single transaction on the Terra network, there is a fee that is paid and used to pay stakeholders. Nowadays, the Terra network is creating some of the largest fees besides Bitcoin (BTC) and Ethereum (ETH), showing that the network is becoming increasingly popular in the crypto market.
At the time of writing, LUNA has a price per coin of $27 and it has a market capitalization of $11.1 billion. Moreover, it is the 13th largest digital asset in the world.
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