Part 5 of The Tech Panda´s ten-part crypto series this month. Do check out Part 1 and Part 2, Part 3 and Part 4 . Keep watching this space to learn more about this burgeoning fintech tool.
This Korean Blockchain payment giant has the two-fold vision of bridging the gap between ordinary people and the crypto space, while creating a stablecoin that can be widely used.
The true value of a technology is realized when it enters normal lives and becomes a part of it. Cryptocurrencies, though enjoying the limelight in the fintech sector, aren´t there yet. Terra, a Korean Blockchain payments company is trying to change this.
The Tech Panda spoke to Sarah Kim, Ecosystem Development Associate at Terra, who explains Terra´s vision of bringing people closer to crypto through stablecoins.
Sarah Kim
Terra’s vision is two-fold: to bring the benefits of blockchain technology to ordinary people and to create a stablecoin that can be widely used
“Terra’s vision is two-fold: to bring the benefits of blockchain technology to ordinary people and to create a stablecoin that can be widely used. While blockchain, particularly the area of decentralized finance (DeFi), has been growing at breakneck speed in recent months, most individuals find the barrier to knowledge too high and current applications too user-unfriendly to easily take advantage of the innovation,” she says.
Terra harnesses the power of blockchain technology to remove the inefficient and costly layer of middlemen embedded into existing payments systems to provide CHAI, their partner payments application, customers with incredible discounts through a familiar and convenient user interface.
In addition to bridging the gap between blockchain technology and the masses, they also aim to address the problem that stunts cryptocurrency from becoming more widely accepted: the absence of a stablecoin, which can be used across a variety of blockchains.
“Our solution comes in the form of TerraUSD (UST), which we envision bridging together blockchain protocols and providing the common currency needed for them to scale,” she adds.
The TerraUSD or UST
TerraUSD is an algorithmic stablecoin, where the cost of minting is equal to the face value of the stablecoins minted. In order to mint 1 TerraUSD, only US$1 worth of the reserve asset ($LUNA) must be burned. TerraUSD monetary policy is infinitely scalable — helping DeFi apps and protocols achieve their full potential without restrictions.
Our solution comes in the form of TerraUSD (UST), which we envision bridging together blockchain protocols and providing the common currency needed for them to scale
The UST is Terra’s stablecoin that is pegged to the US dollar. While it’s not the first of its kind (preceded by Tether and DAI, to name a few), it is the first that will be scalable, (able to keep up with demand, no matter the growth rate), interest-bearing, and interchain (usable across various blockchains), making it highly useful for numerous applications.
A New Financial Infrastructure Powered by a Family of Stablecoins
Terra is building new financial infrastructure powered by a family of stablecoins, each pegged to major fiat currencies all algorithmically stabilized by Terra’s native governance and staking token, Luna. Terra’s mission is to set money free by building open financial infrastructure.
A stablecoin that is pegged to a currency like the USD provides the stability that is necessary to realize the potential of cryptocurrency
“A stablecoin that is pegged to a currency like the USD provides the stability that is necessary to realize the potential of cryptocurrency,” Kim explains.
The company has navigated a steady path of growth towards increasing the expansion and development of its products and network. They recently announced their collaboration with prominent members from two of the leading blockchain ecosystems, Polkadot and Cosmos, to launch a new DeFi savings product called Anchor that aims to offer dependable interest rates on stablecoins deposits.
Growth Story
Terra has successfully gained over 2 million users on its payments app, which is nearly unheard of for a blockchain application, which also impressed Kim enough to join the Terra team.
A look at CHAI statistics reveals that as of today Terra´s daily payments stand at 1,697,853,407, with 71,006 daily transactions, and 54,401 daily active users.
While blockchain, particularly the area of decentralized finance, has been growing at breakneck speed in recent months, most individuals find the barrier to knowledge too high and current applications too user-unfriendly to easily take advantage of the innovation
While that is an accomplishment, the team is also looking forward to their upcoming products, such as Anchor, which is an interchain savings platform, coming out soon that will further extend the benefits of cryptocurrency to a broader audience.
“I continue to be impressed by the innovative and immensely talented individuals that make up the diverse Terra team,” Kim concludes.
The company has already partnered with CHAI to release the debit BC CHAI Card on a limited basis, which can be used for payments anywhere in Korea, allowing users to make use of cryptocurrency (which is converted to the local currency for them) on a daily basis.
