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Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
Today, we talk about Terra, a blockchain that aims to make payments as easy as Paypal or Venmo for a worldwide audience.
Terra has only been around since 2019 and was created specifically with stable coins in mind. The idea is to provide numerous such stable coins, one for each major real world currency to make online payments easy. Those stable coins are all exchangeable on the blockchain, making buying something in one of the other stablecoins very simple without having to exchange currencies manually.
The Terra founders have the larger vision of making online payments with crypto extremely easy. Having started very large e-commerce websites in Asia, their hope is to get people to turn Terra into a widely accepted alternative payment method online. For that vision to come true, the Terra team created payment apps for mobile and desktop and are giving their Luna token to people for using it.
Another interesting feature of Terra is also how it creates stable coins. Instead of holding a reserve – like most stable coins – they algorithmically create and destroy coins to keep the market price balanced. In other words, the stable coins themselves adjust supply and demand.
And that’s Terra. And next time, we’ll talk about Avalanche.
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