Technology surpassed the traditional barter system and introduced the world to a more advanced, faster, and more efficient way of money transfer. As time passes, the payment system is transforming into a decentralized one, all thanks to blockchain technology. Making transactions with a high level of security, transparency, and efficiency becomes possible with blockchain technology. One such platform tabling fast and affordable settlements and wide adoption of fiat currencies is the Terra Classic network.
What Is Terra Classic (LUNC)?
The development of Terra Classic began in January 2018 by Terraform Labs, a startup co-founded by Do Kwon and Daniel Shin. The blockchain protocol’s mainnet officially launched in April 2019 and initiated offering stablecoins to the US dollar, Mongolian tugrik, South Korean Won, and others.
Terra is a Cosmos blockchain protocol that considers fiat-pegged stablecoins to empower price-stable global payment systems. The protocol combines the price stability and acceptance of a wide range of fiat currencies with the censorship resistance of Bitcoin (BTC), making Terra Classic a key player in the crypto game.
The main objective behind the launch of Terra Classic is to help TerraUSD (UST) sustain its dollar peg using an algorithmic stablecoin mechanism. Support for stablecoins, interoperability, staking service, and streamlined finance played a major role in Terra Classic’s success. LUNC is the native token of Terra Classic, introduced in 2018 to work with the original code of Terra Ecosystem.
How Secure Is The Terra Classic Network? The Complete Working
Terra network is one of the most secure platforms in the crypto universe, holding several reasons. Utilization of the Proof-of-Stake (PoS) consensus mechanism based on Tendermint is one of the main rationales behind Terra’s top-level security.
PoS mechanism adds to processing transactions creating new blocks in a blockchain, and validating entries into the distributed database. In simple terms, PoS is a process to prove that validators have included something of value in the platform which can be demolished when acted dishonestly.
A total of 130 validators engage in the network at any specific moment, with voting privileges examined by the quantity of LUNC linked to each node. The token holders are allowed to take part in the consensus whereas validators, like delegates, make their own stake. Incentives or earnings generated by terra coin delegators vary, depending on the voting power of the validators. Delegating can be finished over the Terra station interface but involves a wide range of risks like penalization for misbehaving.
Terra’s decentralized public ledger also makes it one of the most secure platforms in the crypto space.
What Is Luna Classic (LUNC) And How To Acquire One?
Luna Classic (LUNC) is the native currency of Terra protocol and mainly operates with the original code of the Terra environment. Absorbing the price fluctuations of the algorithmic stablecoins, where they are pegged to the US dollar. This is done through minting and burning the supply and demand of the coin. LUNC holds a total supply of 6,831,356,987,263 LUNC and a circulating supply of 5,793,495,684,037 LUNC.
Want to buy one? Here are a few steps you can adopt to purchase LUNC.
Those wondering whether to purchase LUNC should understand that the token can only be purchased using a crypto exchange. Crypto exchange helps in exchanging the fiat current for LUNC. Most of the exchanges supporting the respective coin are Binance, KuCoin, Huobi Global, Gate.io, MEXC, Kraken, and PancakeSwap (V2). Considering factors such as user interface, transaction fee, and reliability will help in choosing the most compatible platform as per your preference.
Almost all exchanges follow the same steps for account creation and registration and require validation using email. The next thing to do is to transfer the fiat current to the exchange account to purchase LUNC. Fund deposits can be done using bank transfer, credit/debit card, or other payment methods, depending on the compatibility of the platform and the preference of the buyer. Choosing the investment amount and wallet for storing the funds will help you make the final purchase. Selecting the token in the list of coins and hitting the buy option is all you need to do to make a final buy.
Terra Classic wallet can be used to store the LUNC token which safeguards the token using public and private keys. Other options include Coin98, Leap, Trezor, Trust, and XDEFI wallets. These wallets make it easy for the buyer to store and use the purchased tokens for different purposes.
What About Investments In Terra Classic?
Investing in any crypto includes consideration of factors such as general market sentiment, reliability, and competition investor trust. In the extremely volatile environment, Luna Classic holds the power to enjoy the same heights as other digital assets in the near future.
Looking at the positives, Terra Luna Classic could have the potential to offer gains for investors, depending on the length of investment and reactions. The majority of the investors consider LUNC better and safer due to the launch of a completely new network and adaptation of the PoS mechanism.
Conclusion
The introduction of the Terra Classic platform empowered the price-stable global payment systems and made trading and investment much more secure. Terra’s native token, LUNC can be purchased from exchanges such as Binance, KuCoin, Huobi Global, Gate.io, MEXC, Kraken, and V2.
FAQs
Is UST considered a stablecoin?
Stablecoins are backed by real-world assets, but UST or TerraUSD is an algorithmic stablecoin that is assumed to be pegged to the US dollar.
Can you explain the relationship between Luna and UST?
TerraUSD is connected to the sister token, Luna, whose value was decided by the market as 1UST is around $1 worth of Luna.
How does Terra differ from other blockchain protocols?
Terra platform is developed using the Cosmos blockchain technology and is introduced to challenge incumbent retail payment applications.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/11/11/what-is-terra-classic-lunc-definition-history-and-working/