Terra is an open-source, permissionless, and public blockchain that can support decentralized applications (dApps) across DeFi, NFT, Web3, and more categories. Also known as Terra 2.0, the new Terra blockchain is a brand new network created after the original Terra network, Terra 1.0, experienced a market crash in the value of its native assets, LUNA 1.0 and TerraUSD (UST) stablecoin.
Terraform Labs, the company behind the blockchain development, announced Terra 2.0 in late May 2022 after the collapse of the UST stablecoin and the LUNA token, which was used to maintain the price stability of the algorithmic stablecoin. The old Terra blockchain, or Terra 1.0, was rebranded to Terra Classic.
The present Terra blockchain uses LUNA as its native cryptocurrency but no longer supports stablecoins. Terra utilizes a proof of stake (PoS) consensus mechanism and provides highly efficient and fast operations using technologies such as Mantlemint, Terrain, and Terra Station.
Terra (LUNA) is among the popular cryptocurrencies traded and held by investors worldwide. In addition to buying or selling Terra (LUNA), you can also use it to generate passive income via staking. LUNA holders can stake the crypto to become validators in the Terra blockchain and contribute to verifying transactions and producing new blocks.