LUNA is the native token of the Terra blockchain, which was established in 2018 and launched its mainnet in April 2019 using the Cosmos SDK. This blockchain focuses on creating stablecoins to reduce volatility.
LUNA functions as collateral for the various digital currencies that Terra supports, such as the US Dollar and others. Users can convert these currencies back into LUNA, setting it apart from other stablecoins.
To “anchor” a Terra stablecoin, the miner or creator must exchange it for a fiat value. For example, a stablecoin valued in euros would be convertible to LUNA at the euro’s value. The same process applies to currencies like the dollar, Argentine peso, won, yen, and more. This conversion method ensures relative stability by maintaining a fixed exchange rate.
As of today at 11:00 AM (UTC), Terra’s value is approximately $0.445826, showing a 0.53% change over the last day. It has also recorded a slight decrease of -0.25% compared to its value an hour ago. Currently, it ranks #157 in terms of popularity.
Cryptocurrencies are becoming increasingly integrated into everyday language, capturing the interest of those concerned with finances. In fact, some regions around the world have even begun to legalize their use.
Virtual currencies utilize cryptographic methods to facilitate transactions within a decentralized system, often relying on blockchain technology. This approach contrasts with traditional models, where banks act as intermediaries.
The growing interest in digital currencies comes from their significant value increase over the past few years. Bitcoin, Ethereum, and Dogecoin are among the most popular cryptocurrencies that dominate the market.
These currencies are created through a process known as mining, and users can acquire them via various exchanges. Once obtained, they can be stored in cryptocurrency wallets or used for different transactions through unique keys.
Although Bitcoin emerged in 2009 as the first cryptocurrency, it has only recently gained traction in the financial arena. Experts anticipate that its usage will expand even further in the foreseeable future.
Cryptocurrencies possess unique characteristics: they are not controlled by any institution, they do not require intermediaries for transactions, and they often utilize blockchain technology to prevent the illegal creation of new currencies or the alteration of existing transactions.
Despite their innovative nature, cryptocurrencies face skepticism due to the absence of regulatory bodies, leading to concerns about reliability and volatility. Issues such as fraud and a lack of legal frameworks that protect users have also been raised.
Paradoxically, while critics point out these weaknesses, cryptocurrencies offer substantial security to miners through their underlying networks, which rely heavily on code management. While breaking this security is technically possible, achieving such a feat would require computational power exceeding even that of Google.
Investing in digital currencies entails significant risk. While values may increase, they can also plummet unexpectedly, potentially wiping out investors’ savings.
To securely store cryptocurrencies, users need a digital wallet, which is actually software that allows for safe storage, sending, and transacting of cryptocurrencies. These wallets don’t store the cryptocurrencies themselves but rather the keys that signify ownership, making it crucial to protect these unique codes.
Image and News Source: https://www.infobae.com/noticias/2024/07/22/terra-cual-es-la-cotizacion-de-esta-criptomoneda/
