Tether is the most popular stablecoin today (and, according to CoinMarketCap, is in the top 7 cryptocurrencies by market capitalization). We have tried to understand for you the secrets of the success of this cryptocurrency and its features.
What is Tether?
Tether is a pioneer in the world of stable coins. It makes it possible to store cryptocurrencies with a 1:1 peg to the dollar (USDT), euro (EURT) and Chinese yuan (CNHT). Coins are issued by Tethet Limited, whose reserves support all issued tokens. Each of the issued coins is backed by a corresponding fiat currency. This allows Tether’s stablecoins to be less subject to volatility compared to traditional cryptocurrencies.
Omni Protocol
Since 2014, the release of stablecoins has been based on the Omni Layer protocol (after rebranding in 2016, shortened its name to Omni). This is an open protocol that is an add-on to the Bitcoin blockchain. The Omni platform allows you to create digital assets, smart contracts and decentralized Peer-to-peer exchanges.
Using the Bitcoin network gives the Omni protocol a number of advantages, including the security and stability of the BTC network itself. All coins that are created in Omni over the network are tokens in the Bitcoin blockchain. All exchanges and wallets compatible with BTC are automatically compatible with Omni tokens.
Among the disadvantages of the protocol, as with the Bitcoin blockchain, is the low transaction speed on the network (on average, one transaction takes about 10 minutes), as well as high commission and block restrictions.
Tether and Ethereum
In February 2018, the issue of Tether tokens was held on the Ethereum blockchain according to the ERC20 standard. This transition allowed the use of Tether in smart contracts and decentralized applications running on Ethereum. In addition, the average time on the Ethereum network is only 15 seconds, instead of 10 minutes on the BTC network. The undoubted advantage of the Ethereum network is the smaller size of transaction fees.
Since Tether uses different protocols, users need to verify addresses when sending funds. Tokens of one standard cannot be transported to another network.
Tether and Tron
In April 2019, the company began issuing USDT based on the Tron blockchain. Stablecoins are launched on the basis of TRC-20, a technical standard used by the Tron blockchain to implement tokens, similar and compatible with the Ethereum ERC-20 standard. The addition of a coin on the Tron blockchain was conceived for the development of the Tron ecosystem of decentralized applications (dApps).
On our the site has the opportunity to both buy and sell Tether of any of the 3 protocols presented
If you have any more questions, please contact our support service via online chat on the site (icon in the lower right corner of the site) or by e—mail hotexchangeid@gmail.com
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