Dear Young Ladies ( Mariah20 & NoorulHuda G,) Please stop this never ending debate on Politics which will definitely end in fierce fight.
I am giving you both an assignment. Let's do some research on Terra Luna chain and let our community take benefit of our research work. why it has shown tremendous growth in past one year? How many projects launched on its chain? Is it good investment case for huge price gain in future?
Thanks.
https://changehero.io/blog/what-is-terra-luna/https://defillama.com/chainsWell My Point of view here. Without Invitation hehe...
Short HistoryLuna Made tremendous performance as Nobody expected well i am with Luna from 2$ price range and same case was with Sol but with SOL i was connected by an Airdrop and with Luna i made some investment on some bodies Advice untill 15$.
So Luna , Luna is actually Secondary asset of the Terra Network Blockchain yes secondary.. Primary Asset of the Blockchain of Luna is UST a Stable Coin Directly Pegged with LUNA.
Example : DAI pegged with ETH on Etherium Network.
Bussniess Model:
Well Bussniess Model of Luna and UST is algorithmic means both Currencies Contracts are Connected with each other. So with the increase in the demand of the UST the Luna are burned with equal amount as a Reserve Fund as mentioned in the contract. But
Recent: They made a change in their Bussniess model that Now they are Holding BTC as a Reserve for the Future on behalf of LUNA with total 40% of BTC and 60% of LUNA
Actually these both assets are considered as Burned but not actually Burned these assets are stored for No Transections and Trading. Just used for the Worst case if Terra Network Collepse then Restoration of System will be done by these assets.
Future Value:Ha well Luna made a good Achievements in recent years but No doubt there Strong Competition AVAX and SOl are the Main competition to the LUNA other chain Exceptions are as well.
Luna has unique Reserve asssets and these reserve are the main reason LUNA appear as the Strongest Contender in Future but.
Flaws not actually but 2nd sideWe can see a Particular Hype made SOL to make ATH similar Hype made LUNA to make and set a trend back but the Sustainability is the main issue with both SOL and LUNA these are still Exceptions that Algorithms are not much secure.
Due to PoS structure and Still ETH is Biggest Network and 2 most powerful currency reason is POW ( Proof of Work ) architecture. PoW is the demand by the Community which more secure Decentralized and Worthy.
PoS ( Proof of stake ) based Chains are considered as more Centralized as compared to Decentralized reason their Architecture and Node control by the Specific bodies.
These are the major issues with the LUNA as well SoL as well and other PoS based chains. For a long term perspective i can't find a reason for Switching ETH to LUNA or any other chain. Well new technologies are exceptional topic.
New chains are more fast more Stable more Cheap these are reason for their future possibilities for the development are more Higher and no doubt that these are now dominating market slowly by their features in the NFT DAO and Funds transfer.
Thats all for Now but security and Algorithms with power of Attorney ( Nodes ) are centralized as compared to the actual demand as making me risk of it.
Conclusion:
No doubt the TPS ( Transaction per second ) are much better in new chains and this the reason for their such hype andthey actually more efficient in Funds transfer and using Dapps. Low cost.
But the centralized power of controll is not a good option for the long term perspective as Security comprised and Centeral Body involved.
BTC and ETH Layer solutions can make these Blockchain technologies more stable in future that will be a big thread to the complete elimination of these chains as These Upgrades will involve all their features with PoW and actual cryptography and Blockchain technology.
