What Problem Does Terra Solve?

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Terra, the second biggest smart contracts platform after Ethereum, is a blockchain platform for algorithmic stablecoins that can fill the gap between fiat and digital currencies.

Although the crypto industry’s adoption rate is swiftly increasing, the majority of people are reluctant to use cryptocurrencies (guide to cryptocurrency) as a medium of exchange because of the volatility. Sometimes, the prices of cryptocurrencies fluctuate around 10-20% within a day. Terra offers a price-stable digital currency ecosystem to solve this problem.

Terra has designed internal algorithms to maintain the stability of algorithmic stablecoins within its ecosystem. Terra USD (UST) is the main stablecoin of this platform that is backed by smart-contract algorithms and Luna token. This unique feature differentiates between UST and USDT because Terra doesn’t make any misleading claims about its reserves.

Terra has established a treasury that is similar to a central bank. This treasury manages the fiscal governance and spending regime of the platform. Read more...