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Know what problems of stablecoins does Terra solve. Is LUNA worth investing in 2021?
It is a protocol based on blockchain that powers the price stable global payments using the fiat pegged stablecoins. Launched in 2019, Terra aims to combine the price stability and the adoption of the fiat currencies widely with BTC's censorship resistance and offer affordable and faster settlements. LUNA is Terra's native token which is used for stabilizing the price of stablecoins. The current market price of LUNA is $17.53 after a decrease of nearly 6.5% over 24-hours.
The native token LUNA serves a lot of purposes in the Network, and it is mainly used for operating the collateralizing mechanisms for securing the price stability of the stablecoins of Terra Network.
There are many issues faced by the top stablecoins, which Terra potentially solves. Using open financial infrastructure, the Terra network also aims to remove the technical limitations on the assets.
What are the advantages of using the Terra network?
· Programmable- The platform has a plan focused on development, and it allows the programmers to develop the smart contracts in Go, AssemblyScript, or Rust. The user can add extra functionality to the Decentralized applications by the use of Network's oracles. Notably, the oracles are the off-chain sensors that can communicate the data to and from the blockchain and are critical to the blockchain networks.
· Interoperability- Terra network is designed to run on multiple applications to which Cosmos IBC connects, and it is currently live on Solana and Ethereum.
· Streamlines Financial- Terra network was built to replace the complicated payments value chains; primarily, it aims to reduce the need for the credit card networks, payment gateways, and banks with a single blockchain layer.
One unique feature of the Network is its self-adjusting monetary supply mechanisms, reflecting the decentralized sector's pioneering spirit. The Network is becoming more and more popular among traders, and we can see its usage expanding globally. It is expected to grow more in the coming few months by developing more unique projects on the Network. The token, LUNA, is also likely to expand this year, and based on the predictions, it is expected to grow more than $25 by the end of 2021.