Terra: what is your price today?

LUNA, the native digital currency of the terra blockchainwas created in January 2018 and quickly became one of the most popular altcoins, especially with Argentines, who had to seek alternatives to the financial instability that their country has been facing for several decades.

To understand LUNA we have to talk about terra, the blockchain network established through the Cosmos SDK software and whose functionality is the creation of the so-called stablecoins which, as the name suggests, are cryptocurrencies that seek stability through a link with legal currencies, commodities, among others, which “eliminate the volatility that characterizes digital assets.

Earth aims to eliminate scenarios where a virtual currency can face highs and lows in the blink of an eyeas is the case with bitcoin, to achieve mass adoption and that this currency can be used in transactions and decentralized institutions.

In this scenario, terra is looking for LUNA users to be able to make purchases with their electronic wallets and those receiving payments can have an automatic switch to another currency, such as dollars or pesos with rates below one percent.

However, there is also the case of tether, another of the stablecoin-based cryptocurrencies, had to pay a debt of $41 billion for deceiving its users by stating that it had all its coins backed up when in reality it had insured only 10% of them.

To anchor the terra stablecoin, the creator must convert it to a fiat value of LUNA , that is, for the value of one euro, one dollar, one peso, one pound, depending on where the financial operations will be carried out. When the value does not match, users are incentivized to stabilize the price by burning or creating cryptocurrencies, and users can earn rewards by staking, i.e. buying or storing the assets.

Terra Cryptocurrency Quote

The value of the terra cryptocurrency for this day at 4:05 p.m. (UTC time) is $1.790684. This means that the digital currency has suffered a change of -3.08% over the past 24 hours, as well as a 0.49% move over the past hour.

cryptocurrencies They cease to be strangers and begin to enter common parlance, arousing the interest of those who are preoccupied with finances or even to the point of being legalized in some parts of the world.

As the name suggests, digital currencies they use cryptographic or encryption methods to perform transactions in a decentralized system and, most of them, by block chains (blockchain), which moves it away from traditional models where banks operate as intermediaries.

Its innovation has made many people interested in investing in digital currencies, as its value has increased significantly in recent years, being bitcoin, ethereum and dogecoin the most popular and those with the largest market capitalization.

Each of these units is produced by a process called “mining” and users can acquire them through different agents or digital currency exchanges, to later store them in “crypto wallets” or conduct various transactions with them through unique keys.

Cryptocurrencies have different characteristics that make them unique: not being controlled by any institution; not require third parties in transactions; and almost always use accounting blocks (blockchain) to prevent new cryptocurrencies from being illegally created or transactions already made from being altered.

However, by not having regulators such as a central bank or similar entities They are flagged as unreliable, volatilepromoting fraud, not having a favorable legal framework for its users, allowing the operation of illegal activities, among others.

Although it may be a paradox, cryptocurrencies in turn guarantee security to their miners in terms of the network in which it is located (lattice) and this involves code management; hacking this security is possible but not so easy to achieve because anyone trying it would have to have more computing power even than Google itself.

Anyone investing in this type of digital asset should be very clear that this form brings with it a high risk to capitalWell, just as there can be a surge, it can also crash unexpectedly and wipe out the savings of its users.

To store them, users must have a digital currency or wallet, which is actually software through which it is possible to save, send and transact cryptocurrencies. In reality, this type of wallet only stores the keys that mark a person’s ownership and right to a certain cryptocurrency, so these codes are the ones that really need to be protected.