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Terra is a blockchain protocol that makes use of fiat-pegged stablecoins to power the price-stable global payments systems. Terra is building a high-speed token that bridges Solana, enabling hyperfast transactions of Terra stablecoins on all of Solana’s Dapps.
To build the bridge, “Contract T” and “Contract S” are made possible. The bridge leverages a “mint and burn model” using these mirrored contracts. Users mint Terra tokens on Solana by “calling a burn transaction on contract T” and then “minting a transaction on contract S” by submitting proof to Solana that the Terra tokens were burned using contract T. This works in both directions, thus creating a two-way warp.
Thus, together it is a high-speed token bridge that facilitates the transfer of Terra stablecoins into Solana’s Dapp ecosystem.
Stablecoins on Solana expands the design space for developers, thus opening the doors to novel applications that need price-stable payments. Terra’s expansion is supported by creating a seamless gateway to the developer community using the same stable coins.
For those who are new, Solana builds crypto applications that scale. In simple terms, an application is a simple operation put into action. Dapps are disrupting business models. Dapps built on decentralized apps combine the smart contract and the front-end user interface. Traditional Dapps run on a single network of computers, and the control is focused on one area. Dapps run on the top of a decentralized peer-to-peer network, and there is no single entity controlling the activities.
Dapps use their own tokens for the transaction. The potential of Dapps has not been fully harnessed to date. However, it is impossible to ignore Daps, considering their usability. Public blockchains are mainly used for Dapps development. The smart contract applications, run as programmed without any censorship, downtime, fraud, or third-party intermediaries.
The backend code of Dapps runs on a decentralized computing system. The Dapps work according to a protocol agreed upon within the community. The Dapps are stored on the blockchain system. It can be applied to almost any system ranging from gaming and several business processes which can be executed online.
Every blockchain backing a cryptocurrency has lots of Dapps running on it. The transactions in the Dapps are made using the native token of the blockchain on which the Dapp is situated or by using a proprietary token unique to the Dapps economy.
All Dapps do not work on all platforms. There are unique codes that make it work only on specific platforms. During the founding stages, Dapps fail to attract users. Also, due to widespread competition and replication of the usability of Dapps, even the most popular ones fail to retain their user base from migrating to their competition.
