What is Terra 2.0?

Sep 13, 2022
3 min read

This blog post will cover:

  • What is Terra 2.0?
  • Where did Terra 2.0 come from?
  • What are the advantages of Terra 2.0?
  • What are the disadvantages of Terra 2.0?
  • How to buy Terra 2.0 on SimpleSwap?

What is Terra 2.0?

LUNA is a native coin of the Terra network. This blockchain specializes in creating stablecoins, which are convertible into LUNA. It can be used to pay fees, to peg stablecoins, to stake, and participate in governance. For staking users can receive rewards. The LUNA token is used to provide stability to the network.
The significant feature of the Terra project is an opportunity to peg stablecoins to various fiat currencies. Anyone can propose a new stablecoin.
Terra stablecoins can be used for payments. They are easily swapped into any currency. So far, Terra has performed incredibly well, and it is considered that this project has all the chances to build an alternative worldwide banking system.

Where did Terra 2.0 come from?

Terra grew out of a start-up called Terraform Labs in 2018. It has two co-founders, Do Kwon and Daniel Shin. Initially they wanted to find a solution for the crypto volatility problem, and thus push the adoption of cryptocurrencies to a new level. It is a well-known fact that the adoption is going slowly for several reasons:

  • Necessity to educate people about cryptocurrency
  • Low demand
  • High volatility
  • Monetary policy
    The founders of the Terra protocol believe that they can bring elastic monetary policy into the Crypto World, which will maintain the stability of prices. Moreover, they are sure that the exercising of an efficient fiscal policy will drive adoption. All the ideas the team has are described in the project’s white paper.

What are the advantages of Terra 2.0?

There are a number of advantages that may attract users to the project. Let’s take a closer look at them.

  • The Terra project solves problems
    It is not a secret that the Crypto World is developing, and undoubtedly it is trying to solve all the problems that occur on the way. Terra provides solutions for some of the most significant of them, as it is written in the white paper.
  • User-friendly application
    Terra provides user-friendly desktop and mobile applications.
  • Wallets’ support
    LUNA token is supported by a wide variety of wallets, which makes the usage of this crypto more comfortable.
  • Exchanges’ support
    Exchanges’ support A lot of exchanges support LUNA, which definitely helps to speed up the adoption process.

What are the disadvantages of Terra 2.0?

  • Fees
    The team is trying to lower fees, however, some users may argue that fees are quite high.
  • Crypto regulations
    Some users believe that future possible crypto regulations may negatively affect the adoption of an alternative financial system.

How to buy Terra 2.0 on SimpleSwap?

If you would like to become a member of the Terra community and would like to purchase LUNA, SimpleSwap is here to help you. To do this, please follow the instructions below:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select LUNA in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Click the Exchange button.
  • Enter the Recipient's Address. LUNA will be sent to this address. Be careful and make sure you use the correct address.
  • Create the exchange.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

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