LUNA, the native cryptocurrency of the terra blockchainwas created in January 2018 and has quickly become one of the most popular altcoins, especially among Argentines, who have had to look for alternatives to the financial instability that their country has faced for several decades.
To understand LUNA it is necessary to talk about terra, the blockchain network established through the Cosmos SDK software and which has the peculiarity the creation of so-called stablecoins which, as their name says, are cryptocurrencies that seek stability through a link with legal currencies, commodities, among others, which “eliminate the volatility that characterizes digital assets.
Terra seeks to eliminate scenarios where a virtual currency can face sudden movements in the blink of an eyeas is the case with bitcoin, to achieve mass adoption and so that this currency can be used in decentralized transactions and institutions.
In this scenario, terra wants LUNA users to be able to make purchases with their electronic wallets and those who receive payments can have an automatic exchange to another currency, such as the dollar or the peso with fees of less than one percent.
The cost of the terra cryptocurrency for today at 11:00 am (UTC) is 0.497089 dollars. This means that the digital asset recorded a change of -5.71% in the last day, as well as a movement of 0.29% in the last hour.
Due to its level of capitalization, this digital currency occupies the position #156 among the most popular.
Cryptocurrencies They are no longer foreign elements and have begun to enter the language of everyday life, awakening the interest of those who are concerned about finances or even reaching the level of being legalized in some regions of the world.
As their name indicates, virtual currencies they use cryptographic or encryption methods to carry out transactions in a decentralized 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 increased 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 produced through a process called “mining” and users can acquire them through various 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 several factors 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 altered.
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; Hacking this security is possible but not so easy to achieve 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.
