What is Tether?

History of Tether

Tether (USDT) is the world's first stablecoin (a cryptocurrency that emulates the value of a fiat currency).

From the beginning, Sun's goal has been to facilitate the development of applications that will be integrated into the TRON network. To achieve this, TRON was designed to facilitate that transition and thus quickly attract developers. All of this was done in order to speed up the creation of new DApps that would compete directly with the Ethereum network.

Initially, USDT would be issued in the Bitcoin protocol through Omni Layer, although, later it would migrate to other blockchains (blockchains). To this day, a considerable part of its money supply is in Ethereum in the form of ERC-20 tokens. It is also broadcast on other blockchains, among which we can find are TRON, EOS, Algorand, Solana and OMG Network.

Like most major cryptocurrencies on the market, Tether encountered successes and controversies.

Especially during its early days, the price of USDT would be quite volatile, thus managing to reach the price of $ 1.2 at a certain point. Although since the beginning of 2019 the currency has experienced much less volatility compared to its beginnings. This is likely due to a constant increase in your trading volume and the general progress of the cryptocurrency markets.

Still, it has an interesting history of audit inconsistencies, suspicious financial entities, operating in countries with questionable regulations, and more. In this way, he accumulated a significant number of lawsuits and unfavorable reports against him.

The most important of all dates from April 2019, when the New York Attorney General argued that Bitfinex tried to cover up a loss of $ 850 million in funds from clients taking illegal loans.

The entity is also accused of making an illegal offer of securities.

Furthermore, according to the research carried out, only 74% of Tether's stablecoins were backed by real cash reserves.

Tether Economy

Thanks to the stability with which USDT has, investors can maintain their digital assets in a similar way to regular fiat currencies, but at the same time they manage to maintain the ability to be easily exchanged for other currencies in the cryptocurrency market. These were the key features that made the currency popular; but this does not exempt it from risks.

How Tether Works

How does it Work

Tether works with open block technology, taking advantage of both the security and transparency it provides, while at the same time complying with international standards and compliance regulations. Its main value is converting cash into a digital currency to anchor the value to the price of the national currency. In this way, Tether always has to be backed by reserves that include traditional currency, cash equivalents and, from time to time, other assets and accounts receivable from Tether loans to third parties.

Addresses

An address is a unique form of identification for each user that is used to make exchanges (either send or receive) cryptocurrencies quickly and easily.

In the world of cryptocurrencies, the address works in the same way as in the traditional financial system, whether it is to send or receive money transfers. Which is to say, it works like a kind of bank account.

Transactions

An exchange with Tether is simply a transfer of value between two wallets, which is registered in the blockchain (chain of blocks).

To send money from a wallet, the emissary must sign the transaction with his private key to prove that he is the owner of the funds.

How is it Obtained?

Due to the fact of being a stable currency, it is not possible to be mined. The only possible way to obtain it is to transfer fiat money to the organization's account or buy it on cryptocurrency exchange sites.

Privacy

Each transaction is registered in a public "book" called a chain of blocks (blockchain), this allows to investigate the history of a cryptocurrency in order to avoid theft, false copies or undo transactions.