LUNA, the native digital token of the Terra blockchainIt was established in January 2018 and has quickly become one of the most popular altcoins, especially among Argentines, who have had to look for options in the face of the financial instability that their country has been facing for several decades.
To understand LUNA, it is necessary to talk about terra, the blockchain network created by the Cosmos SDK that has privacy make calls stablecoins Which, as their name indicates, are cryptocurrencies that seek stability through a correlation to fiat currencies, goodsAnd, among other things, “get rid of” the volatility that characterizes digital assets.
the earth It seeks to eliminate scenarios in which a cryptocurrency can experience ups and downs in the blink of an eyeas it happens with bitcoin, to achieve massive adoption and that this currency can be used in decentralized transactions and institutions.
In this scenario, terra seeks to enable LUNA users to make purchases with Electronic wallets And those who receive the payments can have an automatic change to another currency, such as dollars or pesos, in percentages of less than one percent.
However, there is also the case of Tether, which is another case of cryptocurrency that is based on stablecoinshad to pay $41 billion in debt to deceive its users by saying that all of its coins are backed when in fact it is only insured at 10%.
to solidify stablecoin from Earth, The creator must convert it to a LUNA value , that is, in the amount of 1 euro, 1 dollar, 1 peso, 1 pound, depending on where the financial operations are made. When the value does not match, users are incentivized to lock in the price by either burning or creating cryptocurrency, and users can earn rewards by doing so. maskie the purchase or storage of assets.
Terra cryptocurrency quote
time: 16:05 (UTC)
price: 1.2727881 dollars
Change in the last 24 hours: 0.49%
Change in the last hour:-0.11%
popular in capital letters: #129
How do cryptocurrencies work?
Digital currencies They have ceased to be strangers and have begun to enter the language of everyday life, intriguing those who are interested in financial matters or even to the point of being Certified in some regions of the world.
As its name says, digital currencies Use encryption or encryption methods To carry out transactions in a decentralized system, mostly through Blockchains (blockchain), which distances it from traditional models where banks act as intermediaries.
Its innovation has caused many people to become interested in investing in it Coins digital, as its value has grown exponentially in recent years Bitcoin, Ethereum, and Dogecoin The most popular and largest on the market.
Each of these modules is generated through a process called “mining” And users can get them through various proxies or exchanges of cryptocurrencies, to store them later in “crypto wallets” or to make various transactions with them through unique keys.
despite It was in the year 2009 when Bitcoin entered the market as the first cryptocurrency in the world.The fact is that these are experiencing a boom in the financial field, so it is expected that their use will increase in the near future.
Cryptocurrencies have several elements that make them unique: It is not under the control of any institution; do not require intermediaries in transactions; Blockchains are often used to prevent new cryptocurrencies from being created illegally or altering transactions that have already taken place.
However, by not having regulators such as the central bank or similar entities They are referred to as unreliable and capriciouspromoting fraud, and the lack of a legal framework supporting its users, allowing illegal activities to run, among other things.
Although it can be paradoxical, cryptocurrencies in turn ensure security for their miners in terms of the network they are located in (the network) and that means code management; Breaking this security is possible but not easy to achieve because whoever attempted it must have computational power even higher than his own The Google.
Everyone who invests in this type of digital asset should be very clear that this model brings with it High capital riskWell, 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 wallet or purse, which is, in fact, a program with which it is possible to save, send and perform cryptocurrency transactions. In fact, these types of wallets only hold the keys that determine the ownership and right of a person to a particular cryptocurrency, so it is these tokens that really need to be protected.
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