Important Features of the Terra Blockchain For Payments
CHAI, a mobile payment service powered by Terra, is a platform that uses its blockchain infrastructure to run payments. The platform is also used to power industries that rely on efficiency. As it continues to grow, it will be used for more than just payments. CHAI is an industry-specific blockchain with more than 1.3 million users. If you're considering Terra as a cryptocurrency to use for payments, here are some of the most important features of the Terra blockchain.
The Terra network uses fiat-pegged stablecoins to combine the borderless nature of cryptocurrencies with the stability of fiat prices. The platform has an algorithm that automatically adjusts the amount of stablecoins available based on demand. The system works by incentivizing LUNA holders to swap to stablecoins in order to increase the amount of LUNA in circulation. In turn, this system allows LUNA holders to invest in price without having a physical counterpart.
LUNA is the native currency of Terra, which is used as a utility token and governance coin. The native LUNA coin serves as the collateralization mechanism for the stablecoins. The LUNA tokens fluctuate according to Terra's collateralization mechanism. LUNA is also used as validator staking. Proof-of-Stake (PoS) consensus is used to validate transactions. This method has low transaction fees.
The LUNA cryptocurrency is the first stablecoin supported by the Terra platform. It supports fiat-pegged tokens and the stabilizing cryptoasset, Luna. Terra is a decentralized finance protocol that offers developer support and stability. It also offers low fees for cross-border transactions. Its ika block and users have been able to use the Terra platform, which allows them to conduct transactions in real-time. You can create a secure and convenient wallet with it without the hassle of third-party services.
In addition to enabling global payments, Terra also uses fiat-pegged stablecoins. It combines the censorship resistance of Bitcoin with the price stability of fiat currencies. It provides fast and affordable settlements and aims to roll out additional options in 2021. The main goal of Terra is to provide a global payments platform with a decentralized ecosystem that can serve as a hub for payments. Its development is backed by several prominent investors, including Binance Labs and OKEx.