Understanding Terra 2.0
The reminders of Terra’s devastating crash from two months ago still linger on. Against all odds, Terra 2.0 has risen from the ashes.
What does the revived Terra Ecosystem look like?
- Don’t miss What Happened to LUNA Crypto? if you want to learn more.
The New Terra Blockchain
On May 25, 2022, the users of Terra Classic passed a governance proposal, which outlined the key features of a new Terra blockchain. The proposal also described a genesis distribution of LUNA 2.0, which would be airdropped to Terra Classic users based on pre-depeg and post-depeg snapshots.
Coinmetro has also received the LUNA 2.0 airdrop; currently, we have a portion available immediately and a larger portion which is vested. Here is our LUNA 2.0 Distribution Statement.
At this point, you may also want to read about LUNC Crypto vs. LUNA 2.0.
Just two days after passing the governance proposal, the phoenix-1 Terra mainnet was launched, marking a new era for Terra and its followers.
What is Terra 2.0?
Terra 2.0 is a proof-of-stake blockchain powered by the Cosmos SDK and secured by a system of verification called the Tendermint consensus. Here is how it works:
- First, a validator called a proposer is chosen to submit a new block of transactions.
- Validators then vote on whether they accept or reject the proposed block – in two rounds. In case a block is rejected, the process starts all over again.
- In case a block is accepted, the block is signed and added to the chain.
- The transaction fees from the block are distributed as staking rewards to validators and delegators. What’s more, proposers get extra rewards for their participation.
- This process then repeats again. Each validator has a copy of all transactions made on the network, which they compare against the proposed block of transactions before voting.
As there are multiple independent validators involved in consensus voting, no false block can be accepted. As a result, validators protect the integrity of the Terra blockchain and ensure the validity of each transaction.
Democratic Governance at Terra’s Core
The Terra protocol is a decentralized public blockchain governed by community members, allowing users and validators to make changes to the protocol.
In addition, community members submit, vote, and implement proposals.
Why is this important? The support from the Terra community is immense, and having a strong and engaged community is a crucial part to success.
Now that you have an understanding of the revived Terra, you may want to know if you can trust it. Whether Terra 2.0 proves viable is hard to predict. Still, fueled by a vibrant community and deep developer pool, some loyalty to the Terra projects and teams remains.
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