LUNA, the native cryptocurrency of the terra blockchainwas founded in January 2018 and has quickly become one of the most famous 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 characteristic the creation of so-called stablecoins which, as their name indicates, are cryptocurrencies that seek stability through a link with legal currencies, commodities, among others, which “get rid” of the volatility that characterizes digital assets.
Terra aims to eliminate scenarios where a cryptocurrency can have 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.
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 0.414075 USD, which represents a change of 0.47% regarding the last 24 hours and a variation of -0.66% with reference to its value reached in the last hour.
In terms of its market popularity, it has maintained the position #170 among cryptocurrencies.
A cryptocurrency is a digital medium exchange that does not physically exist and that uses cryptographic encryption to ensure the integrity of its operations, while maintaining control in the creation of its new units.
Bitcoin was the first to be launched on the market and was then followed by others that have also had great relevance such as litecoin, ethereum, IOTA, tether, cash, ripple, decentraland, even some born from memes like dogecoin.
Cryptocurrencies have different characteristics 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, since they do not have regulators such as a central bank or similar entities, they are clearly identified as not being reliable, being volatile, promoting fraud, not having a legal framework that supports its users, allowing 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 anyone who tries to do so would have to have computing power greater than even that of Google itself.
To acquire and exchange them you can through specialized portals. Its value varies depending on supply, demand and the commitment of miners, so it can change faster than traditional money, but the more people are interested and want to buy a certain currency, the higher its value will be.
However, 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.
