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What is Terra 2.0?

Earlier this month, the Terra ecosystem collapsed with the LUNA token dropping to zero as the UST stablecoin lost its peg. Now, Terra’s “revival plan,” also known as Terra governance prop 1623, or Terra 2.0, proposed rebranding the existing Terra Classic network LUNA Classic (LUNC) and launching a new Terra blockchain. Following that, Terra claims that a few members of the community (including those from Terraform labs) have linked to the proposed new blockchain in Prop 1623 as a “fork” rather than a genesis chain. It highlights that the resuscitation plan proposes the establishment of a new Terra blockchain rather than a “fork” of the previous one.

In Terra’s context, a (hard) fork might refer to a change in the blockchain protocol that results in the establishment of two blockchains: one that follows the old protocol and the other that follows the new protocol. 

The new chain is historically identical to the old. The new chain is historically identical to the old. In contrast to Terra 2.0, a branched blockchain “shares all of its history with the original (chain).”

If Prop 1623 succeeds, a new Terra blockchain will be established from the ground up, starting with genesis block 0 and will be unrelated to Terra Classic’s history. DApps and assets from the previous Terra chain (Terra Classic) would be incompatible with the new Terra (due to the fork) and would have to be moved.

Vaishali Goel
Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.


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