![]() ![]() Outside of Ethereum mainnet, ERC-20 tokens are handled differently depending on the network you're using, and it can quickly get confusing. Similarly, if you want to send or receive a specific ERC-20 token, you have to do it by interacting with the token's address. Think of it this way: if you want to send or receive from your account, you'd use your public address. This is because the same cryptographic method is used in both situations (with slight nuances). When the originator first deploys the token's contract on the network, an address is generated that looks similar to the public addresses of Ethereum accounts. In addition to basic functions such as the symbol and name, token creators must also determine total supply and methods for managing the balances of all token holders - one of its core responsibilites. This wouldn't be possible if they didn't all adhere to the same standard.Įvery ERC-20 token is created by inputting some details into a template smart contract which then controls and manages the token. For example, you can add any ERC-20 token to MetaMask. The ERC-20 standard makes it considerably easier for wallets such as MetaMask, dapps, and other platforms to integrate existing and new tokens into their functions. This is a set of requirements for any fungible token on Ethereum - meaning one token has to have an identical value as other tokens of the same type, just like how one US dollar = one US dollar. What is a token address?Īs you may be aware, tokens on Ethereum mainnet generally conform to the ERC-20 standard. To find out more about adding tokens, head to our article on the subject to see several different methods. Cosmos specialises in interoperability between blockchains and therefore promotes the adoption of many projects, including Terra.Ĭurrently priced at $85/€74.4, the Luna token is not going to stop there.Depending on the method you use, finding a token contract address is one step in the process of adding a custom token to MetaMask. Based on Cosmos technology, Terra runs on all major blockchains. Thanks to this mechanism, UST is constantly worth $1, and LUNA is there to keep it this way.Īlso, LUNA lets you pay transaction fees on the blockchain. Conversely, if the price falls, USTs are withdrawn from circulation and users receive LUNAs. If the algorithm detects a rise in the price of UST, LUNA suppliers get more UST. Also, LUNA serves as a guarantee for the UST. First, providing LUNA liquidity to the protocol strengthens the mechanism. Available on the Litebit exchange, this token maintains the balance of the Terra ecosystem. Like many projects, Terra has introduced its governance token: LUNA. This mechanism adds a layer of security to stablecoins, preventing any individual at the head of the project from “running off with the cash.” This mechanism is also available for other stablecoins - those pegged to the Korean Won or the Euro, for example. The latter “burn” or “print” USTs according to price fluctuations. Unlike USDT, for example, which is issued by the company Tether and backed by real-world USD, UST is managed entirely by algorithms. The difference between traditional and algorithmic stablecoinsĬommonly referred to as an “algorithmic stablecoin,” the UST is governed by computer mechanisms that allow it to remain stable. Spearheading the project, the UST is the flagship product of the Terra ecosystem. The Terra project issues the decentralised stablecoin UST pegged to the US dollar. With the relevance of its technology, LUNA had managed to quickly earn the trust of many people and is currently on top of the game. That makes the project remarkably young compared to the other cryptocurrencies in the top 10. The development of the Korean project began in 2018, and its mainnet launched in 2019. The white paper of the project points to a desire to merge the ubiquity of fiat currencies with decentralisation. Terra’s goal is as simple as it is ambitious: to offer stable, decentralised digital currencies accessible to everyone. The Terra project: boosting monetary innovation The platform plans to settle permanently in France and expand across Europe. After obtaining the PSAN certification (Digital Asset Provider), Litebit became a fully regulated company. Also, the exchange has been approved by the Financial Markets Authority (AMF) since 2021. ![]()
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