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 0.438942 USD, which represents a change of -0.05% regarding the last 24 hours and a variation of 0.25% with reference to its value reached in the last hour.
In terms of its market popularity, it has maintained the position #140 among cryptocurrencies.
What are cryptocurrencies and how do they work?
Cryptocurrencies were born in 2008 as an alternative to the devaluation of several currencies as a result of the economic crisis of that year.
The first digital asset created was the bitcoin and over time others emerged like litecoin, ethereum, bitcoin, cash, ripple, dogecoinsome of the most popular.
Cryptocurrencies work through a cryptographic encryption that guarantees the security of transactions, as well as control of the generation of your coins .
To carry out transactions, Cryptocurrencies use a decentralized database, blockchain or shared ledger.
It is important to mention that cryptocurrencies are digital assets that do not physically exist and, unlike currencies such as the dollar, euro or peso, they are not regulated by any institution and do not need intermediaries in transactions.
The latter has caused cryptocurrencies to not be viewed favorably by the formal market, accusing them of being unreliable, volatile, promoting fraud, not having a legal framework that supports their users, and allowing the operation of illegal activities, among others.
Even so, little by little the way has opened to such a degree that companies, millionaires and even States have encouraged or authorized its use.
One of the richest men in the world, Elon Musk, has made comments in favor of digital currencies such as bitcoin and dogecoin, temporarily allowing their use in the electric car company Tesla, which has caused their price to increase.
In The Savior, President Nayib Bukele legalized bitcoin, being the first country to do so. In the case of Mexicoone of the country’s wealthiest businessmen, Ricardo Salinas Pliego, has made public his intentions to accept cryptocurrencies in his companies, one of his main ones – the Elektra store – already does so.
For his part, the president of Argentina, Alberto Fernández, has suggested using its use to combat inflation. Even in Peruthe Central Reserve Bank warned that it was working on its own digital currency project.
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