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Can the Terra Blockchain Sustain Its Growth? Research report digs deeper

Cointelegraph Research gives Terra a thorough rating in its 50-page report to provide an in-depth analysis of its recent updates, including Columbus-5, the Bitcoin (BTC) acquisition, and others.

Decentralized algorithmic stablecoins, blockchain integration with real-world payments, and 20% APYs on decentralized finance (DeFi) protocols – what is it all, and really does it? The team of experienced crypto analysts from the Big Four and top universities worldwide dives deep into the blockchain ecosystem, community and underlying technology, assessing the potential regulatory, market and technological risks.

Terra is a proof-of-stake blockchain ecosystem that aims to introduce cryptocurrencies as a means of payment to a wide audience. The team has successfully integrated the dual token model, where the minting and burning of the LUNA token drives the supply and price of Terra’s stablecoins, including the International Monetary Fund’s Terra USD (UST), TerraGBP, TerraKRW, TerraEUR and TerraSDR .

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In addition, fluctuations in mining rewards are minimized by transaction fees and fluctuations in LUNA’s burn rate. Specifically, the rewards are programmed to increase as the blockchain ecosystem grows.

At the same time, several developers are working on innovative decentralized applications (DApp) on the Terra blockchain, including Mars Protocol, Anchor and Chai. Numerous companies like Kado have built the payment infrastructure. There are also some non-fungible token (NFT) market players where Levana, Talis and Knowhere aim to create a thriving ecosystem. At the same time, TFM, a DeFi and NFT aggregator on Terra, aims to unite the entire Terra ecosystem and become the ultimate destination for newbies.

Read the full report on Terra to find out how the blockchain network has performed over the past year.

However, the issues rarely raised by the crypto influencers are the decentralization and regulation issues. Will Terra sustain rapid development with only 130 examiners? What would happen if UST, the most abundant Terra stablecoin, became subject to regulation by the United States Securities and Exchange Commission? Finally, if one of the most popular DApps, the Anchor Lending Protocol, had crashed in late January 2022, how would Terra’s evolution have been perceived?