Blockchain for stablecoin Terra launches Columbus-5

The Terra blockchain, which aims to increase the efficiency of the global payment system, was upgraded this Thursday. The upgrade to Columbus-5 required shutting down the old chain and switching to a new one.

Blockchain for stablecoin Terra launches Columbus-5

Terra’s DeFi ecosystem is likely to develop as a result of the update. By introducing DeFi apps and interoperability with Solana and Polkadot, Columbus-5 is intended to expand its ecosystem.

When the number of UST increases, all LUNA generated will be burned, similar to how Ethereum’s EIP-1559 upgrade burns ETH with each transaction. The Cosmos’ IBC integration will allow for interoperability with other IBC-compatible blockchains.

Unlike Ethereum’s upgrade, during the Terra blockchain’ shift to Columbus-5, the old chain was shut down, and the code migrated to a new chain from the state of the last block.

The Terra blockchain is a decentralized and open-source blockchain that is built to provide a stablecoin. The platform provides monetary stability and reduces transactional fees. The Blockchain for Stablecoin launched as a chain on Cosmos offers a step-change for those looking to use cryptocurrency as a medium of exchange. Furthermore, it also enables global payments and support across multiple blockchains, with each wallet acting as its own “bank”.

Terra’s operations are based on two major components: the LUNA utility token and Terra stable coins. Its stablecoin shares some similarities with other blockchain-based stable coins. It is backed by a seigniorage process to maintain price stability and does not rely on fiat currency reserves.

The Columbus-5 update is a major update to the network that will increase the reward to users who delegate their LUNA to proof-of-stake validators. And it is now set to pay out swap fees to those contributing to the network anytime someone trades using the Terra Station wallet app.

this article originally published at Crypto Business world and source link

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