LUNA is the native token of terraa blockchain founded in 2018 that launched its mainnet in April 2019 through the Cosmos SDK platform, which focuses on the creation of so-called stablecoins.
In this scenario, LUNA acts as a guarantee for the rest of the digital currencies to which it uses landlike the USD, so that they can later be converted back into LUNA, which makes it different from other stablecoins.
In order to “pin” a Terra stablecoin, the miner or cryptocurrency creator You must convert it to a fiat value, that is, a stablecoin in euros would be convertible to LUNA for the value of one euro; the same would happen with other types of currencies such as a dollar, an Argentine peso, a won, a yen, among others, thus guaranteeing its “stability” by keeping it at a fixed rate.
While the debate becomes more heated every day about the convenience or not of its use, Terra is trading this day at 11:00 am (UTC) at 0.557374 USD, which represents a change of -3.89% regarding the last 24 hours and a variation of 0.01% with reference to its value reached in the last hour.
In terms of its market capitalization, it has maintained the position #154 among cryptocurrencies.
Cryptocurrencies They are no longer foreign elements and have begun to enter everyday language, awakening the interest of those who are concerned about finances or even reaching the level of being legalized in some regions of the globe.
As their name indicates, virtual currencies they use cryptographic or encryption methods to carry out transactions in a deregulated system and, most of them, through block chains (blockchain), which distances it from traditional models where banks function as intermediaries.
Its innovation has caused many people to be interested in investing in digital currencies, since its value has grown considerably in recent years, being bitcoin, ethereum and dogecoin the most popular and those with the highest capitalization in the market.
Each of these units are created through a process called “mining” and users can acquire them through different agents or cryptocurrency exchanges, and then store them in “cryptographic wallets” or make various transactions with them using unique keys.
Although It was in 2009 when bitcoin entered the market as the first cryptocurrency in the world.the truth is that these are just experiencing a boom in the financial field, so their use is expected to increase in the not so distant future.
Cryptocurrencies have various elements that make them unique: not being regulated by any institution; not requiring third parties in transactions; and almost always use accounting blocks (blockchain) to prevent new cryptocurrencies from being created illegally or transactions already made from being modified.
However, by not having regulators such as a central bank or similar entities they are accused of being unreliable, of being volatilepromote fraud, not have a legal framework that supports its users, allow the operation of illegal activities, among others.
Although it could be a paradox, at the same time cryptocurrencies guarantee security to their miners regarding the network in which it is located (network) and which implies code management; Breaking this security is possible but difficult since whoever tried it would have to have a computational power greater than even that of Google itself.
Whoever invests in this type of digital currencies must be very clear that this form brings with it a high risk to capitalWell, just as there can be an increase, it can also unexpectedly crash and wipe out the savings of its users.
To store them, users must have a digital purse or wallet, which is actually a 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 should actually be protected.
