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.
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.

Pavan A
CBW - External Analyst
INDIA