Cryptocurrencies are trending and regularly break value records in the stock markets. But how can they benefit the average person who doesn’t work with investments or try to gamble on exchanges? We will tell you all about it in this article.
What is Tether?
To begin with, Tether (USDT) is a cryptocurrency that is of the Stablecoin type. That is, it is backed by fiat money and differs from the same Bitcoin in its stability. The lack of volatility is not the only benefit of USDT. The virtual currency takes advantage of advanced blockchain technology, supporting several other cryptocurrencies. Moreover, Tether regularly expands and offers its own equivalents in the market:
- JPYT – yen
- EURT – euro
- CNHT – yuan (offshore variant)
- XAUT – the equivalent of a troy gold ounce
The most popular equivalent is Tether, backed by the US dollar – USDT. It is the name that can be found in almost every payment system that works with cryptocurrencies.
Benefits and features of Tether
Ordinary users can use Tether for various purposes, taking advantage of the cryptocurrency’s versatility. Virtual currency holders note the following advantages of USDT over its popular counterparts:
- Tether is extremely stable and not subject to volatility. Discrepancies in exchange rates can be as small as tenths of a fraction.
- Tether’s functionality allows users to remain anonymous and not risk personal data.
- USDT is a reliable cryptocurrency that is accepted in many exchanges around the world. It can be successfully converted into any local currency at a favorable exchange rate.
- Tether is insured against risks by Tether Limited’s own assets.
Another distinguishing feature of Tether’s stackable token is the fact that it does not use the familiar blockchain model. This allows cryptocurrency owners to leverage off-the-shelf systems of other tokens for distribution. The most popular Tether protocol today is TRC20 on the Tron network. The commission on this network is often 1 usdt and the transaction speed is always up to par.
There are several algorithms that are used in the operation of cryptocurrencies:
- Proof of Solvency is a rule that relates to assessing the solvency of a cryptocurrency.
- Proof-of-Work is an algorithm that validates the performance of a cryptocurrency.
- Proof-of-Stake is an algorithm that demonstrates the presence of a share.
- If we talk about the last algorithm Proof of Reserves, however, it is used to demonstrate the presence of real reservation. This is the one that is applicable to Tether.
Proof of Reserves has serious advantages over other algorithms. Here are the main arguments for Tether:
- Every user can use special tools to analyse Tether on the blockchain itself to see the actual number of tokens issued.
- The tokens are backed by real currency – a stock of US dollars held in a bank. Auditors are constantly posting real reserves in the public domain.