The team behind Terra blockchain, led by CEO Do Kwon, has some hours ago clarified misconceptions around the new blockchain underway, Terra 2.0.
Since the Terra fiasco surfaced, validators of the blockchain have been jointly taking decisions that could proffer a lasting solution, which would help the embattled ecosystem get back on track.
It can be recalled that the collapse of the ecosystem became significant on the 12th of May after Terra (LUNA) price massively declined and TerraUSD (UST) stablecoin got depegged.
While a large number of Terra community members demanded LUNA token burns, the Terraform Labs founder, Do Kwon, was suggesting a hard fork to create an entirely different blockchain codenamed Terra 2.0.
Changpeng Zhao (CZ), the CEO of Binance exchange also kicked against the suggestion but embraced token burns. He said forking the blockchain will not help LUNA recover its lost value. However, the Terra team has come out to enlighten the community members on what they don’t know about Terra 2.0.
Terra 2.0 Is Not a Fork but Entirely New Chain
In a series of tweets on 23rd May, the team behind Terra blockchain explained why Terra 2.0 is not a fork but an entirely new chain.
Terra team noted:
“Recently, a few community members (including some from TFL) have referred to the proposed new blockchain in Prop 1623 as a “fork” as opposed to a genesis chain. Note: The revival plan is not proposing a “fork” of the existing chain, but rather the creation of a new one.
“What is a fork? A (hard) fork refers to a change in a blockchain protocol that results in two blockchains – one that follows the previous protocol & one that follows the new version. The new chain shares all of its previous history with the original.
“The important distinction here is that a forked blockchain “shares all of its history with the original (chain)”, which Terra 2.0 will not.
“Terra 2.0 = the genesis of a new blockchain. If Prop 1623 passes, a brand new blockchain (Terra) shall be created starting from genesis block 0 that will not share history with Terra Classic.
“DApps or assets from the old chain (Terra Classic) will not pre-exist on Terra (as they would in a fork), & will therefore need to migrate.
“Most of the popular dApps built on Terra Classic have already committed to migrating, including @prism_protocol, @staderlabs, @randomearth_io, @oneplanet_NFT, & many more.”