What is a layer 1 blockchain

Terra operates with a delegated proof of stake consensus algorithm and is a Tendermint-based Layer 1 protocol , built using Cosmos-SDK. It is considered a part of the Cosmos ecosystem.

Terra is the blockchain which houses the LUNA coin and associated stablecoins, including terraUSD.

Layer 1 refers to a base network, such as Bitcoin, BNB Chain, or Ethereum, and its underlying infrastructure . Layer-1 blockchains can validate and finalize transactions without the need for another network. Making improvements to the scalability of layer-1 networks is difficult, as we’ve seen with Bitcoin.

While Terra’s stablecoins ensure seamless transactions and the stability of fiat currencies, the Terra crypto network uses its native LUNA currency as a utility and governance coin to operate the collateralizing mechanisms that back and secure the price stability of the Terra network’s stablecoins.

What is Wrapped Luna (WLUNA)? Wrapped Luna (WLUNA) is an Ethereum token that’s intended to represent Terra (LUNA) on the Ethereum blockchain .

Terra (LUNA) is one of the few top cryptocurrencies that’s actually gained value this year . The LUNA token gained over 20% in 24 hours and is now up about 50% in the past 90 days. Plus, Terra just reached a new all-time high at a point when many cryptocurrencies are down around 40% or more.