Terra Team: Why Terra 2.0 Is Not A Fork But Entirely New Blockchain

The Terra blockchain team, lead by CEO Do Kwon, has dispelled certain misconceptions about Terra 2.0, the latest blockchain in development.

iexclusivenews reports that since the Terra debacle. blockchain validators have been working together to come up with a long-term solution that would help the beleaguered ecosystem get back on track.

The ecosystem’s collapse became substantial on May 12th, as the price of Terra (LUNA) dropped dramatically and the TerraUSD (UST) stablecoin was depegged.

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While a huge number of Terra community members demanded LUNA token burns, Terraform Labs founder Do Kwon proposed a hard fork to build Terra 2.0, a whole new blockchain.

Changpeng Zhao (CZ), the CEO of the Binance exchange, likewise opposed the idea, but supported token burns.

According to him, forking the blockchain will not help LUNA regain its value. The Terra team, on the other hand, has come out to educate the audience on what they don’t know about Terra 2.0.

Terra 2.0 Is A Completely New Chain, Not A Fork.

The Terra blockchain team outlined why Terra 2.0 is not a fork but an entirely new chain in a series of tweets on May 23rd.

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.

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What is a fork?

iexclusivenews reports that 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.”