What is Terra?

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. It is a platform that aims to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin. Terra's native token, LUNA, is used to collateralize its stablecoin system, providing stability and security to the network. The Terra blockchain protocol was launched in April 2019, following its development that began in January 2018. Terra's community, known as "LUNAtics", continues to build and evolve the platform, migrating many decentralized applications (DApps) to Terra to maintain their functionality.

How does Terra work?

Terra operates using a proof-of-stake consensus algorithm based on Tendermint, where LUNA token holders stake their tokens as collateral to validate transactions. The stakers receive rewards in proportion to the amount of LUNA staked, incentivizing network security. Terra aims to preserve its ecosystem with hundreds of developers working on different decentralized applications. The LUNA token is distributed across Luna Classic stakers, holders, residual UST holders, and essential Terra Classic app developers, making Terra a fully community-owned chain. Terra's approach to blockchain technology aims to facilitate fast and affordable settlements without the need for a stablecoin.

What are the potential use cases for Terra?

Terra aims to provide a platform for decentralized applications (DApps). It seeks to offer a user experience and user interface that can support a variety of applications, from financial services to gaming and more. Terra's ecosystem is designed to be open and accessible, allowing developers to build and innovate within the platform. The LUNA token, as a part of this ecosystem, can be used for staking, governance voting, and as collateral for the platform's stablecoin system. This positions Terra as a platform with potential use cases in the decentralized finance (DeFi) space.

What is the history of Terra?

Terra was founded in January 2018 by Daniel Shin and Do Kwon, with the aim of driving the rapid adoption of blockchain technology and cryptocurrency through a focus on price stability and usability. The development of Terra Classic launched in January 2018 and the blockchain launched in April 2019. However, a bank run in May 2022 led to the devaluation of LUNA and the launch of a new chain, resulting in the current Terra blockchain. Despite criticism, a revival plan proposed by Do Kwon was voted into effect by the community, leading to the hard fork of Terra Classic and the creation of the new Terra blockchain on May 27, 2022. Today, Terra continues to evolve and grow, driven by its community and its work in the blockchain space.