Terra and Algorand are two of the world’s largest cryptocurrencies, each offering a unique solution different from the other.
In this article, we explore both cryptocurrencies and their ecosystems to find out their similarities, differences and use cases.
What is Terra (LUNA)?
Terra is a blockchain protocol that supports price-stable global payment solutions with fiat-pegged stablecoins.
According to its white paper, Terra combines the price stability and broad adoption of fiat currencies with the regulation resistance of Bitcoin (BTC) to provide quick and inexpensive transactions.
Terra’s token launched in April 2019 after a year of development. It offers stablecoins anchored to the U.S. dollar and South Korean won Mongolian tugrik.
It also covers the International Monetary Fund’s Special Drawing Rights basket of currencies as of September 2021 with plenty of options in the pipeline.
What is Algorand (ALGO)?
Algorand is a decentralized blockchain-based and self-sustaining network that may be useful in many areas. These systems are safe, scalable, and efficient, which are all necessary characteristics for real-world applications.
Algorand will help develop new types of trust by supporting calculations that demand dependable performance guarantees.
Since its launch in 2019, the ALGO token holds its TPS at 3000. As of 2020, Algorand could run 1 million transactions making it one of the most energy-efficient tokens in cryptocurrency.
The initial coin offering happened in 2019 at a $2.4 price per coin. Afterward, the price rallied to a max of $2.83 but later plummeted less than a third.
Terra (LUNA) Vs. Algorand (ALGO):
- Thrives on the Cosmos SDK and Tendermint Delegated Proof of Stake and link stablecoins
- Rewards delegators and validators for staking LUNA tokens
- Relies on the Pure Proof of Stake (PPOS) mechanism
- Selects random committee members to validate and admit blocks into the network
Learn more: Is Terra Luna Proof Of Stake?
What Is Luna Used For?
There are an unlimited number of decentralized applications that you can build on top of the Terra blockchain.
You can enable dApps that move Terra assets through transfers from wallets or staking in the wallets. You can also develop dApps for marketing, savings, and applications that push for broader adoption of the Terra stablecoin.
LUNA continues to grow its scalability. Today, you can spend, save, and stake, unlike before.
The Terra blockchain lets you build and develop wallets that can handle DeFi across blockchains and within itself.
You can program how you wish your money to move within the network and help maintain the security of the blockchain. For example, the MathWallet allows you to hold, exchange, or trade most Web3 Terra assets.
Terra stablecoins help you bridge the gap between cryptocurrencies and fiat currency.
You can trade or exchange several crypto coins with LUNA and convert to with the least effort. Binance, Huobi, Kucoin, Bithumb, bitfinex, CoinEx, and Voyager are brilliant examples of coins that exchange with Terra.
LUNA encourages users to swap LUNA and Terra stablecoins by rewarding them for every exchange. Also, the activity helps stabilize the stablecoins prices in the market.
What Is Algorand Used For?
Algorand’s primary purpose is to allow developers to build new applications on their platform. These applications also interoperate with bitcoin.
The Algorand Foundation website has open-source code that you may find and download. Here are more uses for Algorand:
Entertainment and Digital Assets
Xfinite is an outstanding illustration of how Algorand reimagines the relationship between creators, publishers, and customers.
This company uses ALGO to safeguard material, manage data, and provide transparency to consumers, producers, and investors. Algorand is a cryptocurrency available to those who invest or trade-in Xfinite.
Fintech companies and financial institutions
Multiple financial organizations are using the permissionless characteristics of Algorand to increase their financial market activity.
Cartan is an excellent example of how a corporation may use Algorand to produce new business prospects and insights by creating and implementing sophisticated market strategies.
Stablecoins, such as Monerium, can be built using the Algorand ecosystem. Monerium employs Algorand to create monitored e-money on blockchains throughout the EU, Iceland, and Norway, which you can send and receive without the usage of banks or payment providers.
Learn more: Terra Luna Vs. Fantom
Which Has Better Applications?
Picking one coin over the other doesn’t have any advantages.
Both LUNA and ALGO have robust protocols and consensus mechanisms to spearhead the creation of competent decentralized applications. They hold interests in solving the trilemma of scalability, security, and scale.
LUNA offers a record 10000 TPS compared to ALGO, which tops 3000TPS. Such speeds give LUNA an upper hand as it makes speedier applications to solve the trilemma in most blockchains. So, this makes LUNA the most adopted and efficient.
Moreover, LUNA’s Tendermint BFT consensus allow for more interactions with other cryptocurrencies. ALGO offers a permissionless and trustless medium to champion the wider adoption of crypto technology within its network.
Read more: Terra Luna Vs Solana
Which One Is Better To Invest In?
Cryptocurrencies are a speculative and risky investments. It’s a tricky affair to predict which of the two currencies will surpass the other.
In the recent past, both LUNA and ALGO have been active and improved their utility and fundamentals.
Instead of buying either Terra or Algorand, why don’t you focus on acquiring both coins simultaneously? Buying both coins safeguards your investments and lets you earn from whichever coin rallies.
Yet, if you want to take a shot at one of the two coins, we recommend Terra (LUNA). It has several factors that give it the upper hand over the two.
Here are two reasons that drive LUNA as a favorite coin for investment:
Terra shows more potential.
Unlike Algorand, Terra continues to show promise in the past year’s bullish trend by setting new limits every time.
This factor draws more users to Terra than ALGO, whose performance during the same bullish trends was slow.
LUNA has a wider adoption than ALGO
Algorand is older than Terra by a year. However, today Terra’s price is $115.00 compared to ALGO, which is $0.7893. This price difference alone shows that LUNA has a wider following than ALGO.
Although you can pick one coin over another, why not opt for both? These two coins offer an excellent opportunity for you to invest, trade, or stake.