Tether is one of the most popular stablecoins today (included in the TOP-7 cryptocurrencies by market capitalization according to CoinMarketCap). Especially for you, we tried to understand in detail the features and reasons for the popularity the success of this cryptocurrency.
What is Tether?
Tether is a pioneer when it comes to the world of stablecoins. With it, you can store cryptocurrency with a 1:1 peg to the euro (EURT), the dollar (USDT), as well as the Chinese yuan (CNHT). The coins are issued by Tether Limited. Its reserves back up all the tokens that are issued. Each of the issued coins is necessarily supported by the corresponding fiat currency. It is this feature that makes Tether less subject to volatility in comparison with various traditional cryptocurrencies.
Since 2014, the issuance of stablecoins has been based on a protocol called Omni Layer. In 2016, it was rebranded, as a result of which the protocol became known as Omni. The open protocol is an add-on to the Bitcoin blockchain. The platform itself is needed to create smart contracts, digital assets, as well as decentralized Peer-to-peer exchanges.
Omni has several advantages due to the use of the Bitcoin network. Among them, the stability and security of the BTC network itself should be highlighted. All coins created in Omni are tokens on the Bitcoin blockchain. All wallets and exchanges that are compatible with BTC are also compatible with Omni tokens.
The disadvantages of the protocol are also similar to those of the Bitcoin blockchain – high fees, block limits, and low transaction speed (usually, one transaction takes about 10 minutes).
Tether and Ethereum
The release of Tether tokens on the Ethereum blockchain according to the ERC20 standard was held in February 2018. This procedure made it possible to use Tether in decentralized applications and smart contracts that run on Ethereum. in addition, the advantage over the BTC network is to reduce the average time to 15 seconds (recall, for BTC this is 10 minutes). Also, the Ethereum network is distinguished by a smaller transaction fee.
Because Tether uses different protocols, users should carefully check addresses when sending funds. Tokens of one standard cannot be sent to another network.
Tether and Tron
The company started issuing USDT based on the Tron blockchain in April 2019. The stablecoins were launched based on TRC-20, a technical standard used by the Tron blockchain to implement tokens, compatible and similar to the Ethereum ERC-20 standard. Initially, the addition of coins on the Tron blockchain was conceived to develop the ecosystem of decentralized applications (dApps) Tron.
On our website, you have the opportunity to both sell and buy Tether of all of the above protocols.
If you have any questions – do not hesitate to contact our support team. This can be done through an online chat (icon in the lower right corner of the site) or by mail at [email protected].