What the heck is a Tether or USDT ,USDT-TRON, ERC20, USDT-EOS, USDT-Algorand or USDT-Tron?

Are they ropes? B. Teeth? or C. Stable Coins? 

C is always your best guess!:)

What exactly is Tether or abbreviated USDT? Well, if you guessed C, you were correct. As described by the company’s website, Tether allows you to store, send and receive digital tokens pegged to dollars, euros, and offshore Chinese yuan person-to-person, globally, instantly, and securely for a fraction of the cost of any alternative.

If you were like me a few weeks ago, still trying to figure out what this thing called Tether or USDT was, the below information was pulled from their website and will hopefully clear it up for us both.

How does Tether work? You ask?

Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies digitally. Tether works to disrupt the conventional financial system via a more modern approach to money. Tether has made headway by giving customers the ability to transact with traditional currencies across the blockchain without the inherent volatility and complexity typically associated with a digital currency.

Tether tokens exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP, and OMG blockchains. These transport protocols consist of open-source software that interfaces with blockchains to allow for the issuance and redemption of cryptocurrency tokens, in our case, “Tether tokens.” Tether Platform currencies are 100% backed by Tether’s reserves. Tether tokens are redeemable and exchangeable according to Tether Limited’s terms of service. The conversion rate is 1 Tether USD₮ token (USD₮) equals 1 USD.

The Tether Platform is fully reserved when the sum of all Tether tokens in circulation is less than or equal to our reserves’ value. Through our Transparency page, anyone can view both numbers daily.

Remember Tether was set up to be used on varying Cryptocurrency platforms. Tether on the Ethereum blockchain, as an ERC20 token, is a newer transport layer, which now makes tether available in Ethereum smart contracts or decentralized applications on Ethereum. As a standard ERC20 token, it can also be sent to any Ethereum address.

Since Tether tokens are currently available using different transport protocols, when users send Tether tokens to other addresses, they must carefully check the destination address to confirm they are selecting the correct transport protocol.

What real-world currencies does Tether support? Tether initially supports US Dollars (USD), Euros (EUR), and the offshore Chinese yuan (CNH). Represented by ₮, Tether platform currencies are denoted as USD₮, EUR₮, CNH₮.

Who can use Tether? Tether enables businesses to easily use fiat currencies on blockchains, including exchanges, wallets, payment processors, financial services, and ATMs. Some of the largest businesses in the digital currency ecosystem have integrated tether. Individuals can also use tether-enabled platforms to transact with Tether tokens.

How does Tether protect me from cryptocurrency volatility? Because they are anchored or ‘tethered’ to real-world currencies on a 1-to-1 basis and backed by our reserves. Tether tokens are new assets that move across the blockchain just as easily as other digital currencies. Tether currencies are not money but are digital tokens formatted to work on blockchains. Tether tokens hold their value at 1:1 to the underlying assets.

How do I know my Tether Tokens are secure? Tether is built on top of the revolutionary and cryptographically secure open blockchain technologies and adheres to strict security and global government laws and regulations.

All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves. As a fully transparent company, we publish a daily record of our bank balances and our reserves’ value.

Tether tokens can be securely stored, sent, and received across the blockchain and are redeemable for cash (the underlying pegged asset) according to Tether Limited’s terms of service.

Do I have to go through the KYC process? Going through our know your customer (KYC) form and approval process is required to issue and redeem USD₮, EUR₮, and CNH₮.

How do we use on an exchange you ask?  Below you will see a set of instructions pulled from the KUCOIN Exchange:

KuCoin users will be able to deposit and withdraw USDT in four forms: USDT-TRON, USDT-ERC20, USDT-EOS, and USDT-Algorand.

To ensure that users can freely choose their favored forms of USDT to deposit and withdraw at any time, KuCoin will exchange four forms of USDT in advance to ensure an adequate balance of these 4 forms of USDT. If you do not agree to the exchange, please do not deposit or withdraw USDT.

Notes:

  • USDT-ERC20 is the USDT issued by Tether based on the ETH network. Its deposit address is the ETH address, with deposits and withdrawals taking place on the ETH network. The protocol of USDT-ERC20 is the ERC20 protocol.
  • USDT-TRON (TRC20) is the USDT issued by Tether based on the TRON network. The currency deposit address is the TRON address, with deposits and withdrawals on the TRON network. The USDT-TRON (TRC20) uses the TRC20 protocol.
  • USDT-EOS is the USDT issued by Tether based on the EOS network. The currency deposit address is the EOS address, with deposits and withdrawals on the EOS network. The USDT-EOS uses the EOS protocol.
  • USDT-Algorand is the USDT based on the ALGO network. But the currency deposit address is different from the ALGO deposit address. with deposits and withdrawals taking place on the ALGO network. The USDT-Algorand uses the EOS protocol.

1. How to get your USDT wallet address?

Please choose the public chain to get the corresponding USDT deposit address. Please ensure the public chain and address are correct.

As you can see from the above picture you must chose the corresponding platform that you will be using. In example ERC20 = Ethereum, TRC20 = Tron, EOS = EOS or Algorand = Algorand

2. How to withdraw USDT based on different forms?

Please input the withdrawal address. The system will identify the public chain automatically.

We should all understand the importance of making sure our wallet address and amounts are double and triple checked when performing crypto transactions.

Thanks for reading this overview of Tether “USDT”.  Hope this was as helpful of a blog to you as it was to me!

Warmest Crypto Regards,
Corey

About the author

My summary in brief for the past 25 years has been within a role of biotechnology within the oncology, Infectious disease and nuclear cardiology fields.

Building relationships and helping people is my passion. As a young 25 year veteran, I can only hope to continue my path by serving others and helping people.

Comments

  1. corchi124 , Thanks for the interesting info on Tether. There are so many stable coins out in the world of cryptos . No wonder the people like myself gets confused with the amount of different coins that are on the market and their uses. for those coins. Your Blog helped me to understand some of how Tether works but I got to go and read it over again … Thanks so much.

  2. very much appreciate the time and effort put forth — I understand that i will read this a few times before the legit understanding totally puts me at ease or gets me comfortable perse’ — but this is a great start and truly there is just so many and so much information that is needed to actually make comfortable an actuality —

  3. Corey thank you for spending the time researching about the new Abbreviations we will be dealing with very soon.Will take me a few times to fully grasp the whole concept.Am able to figure out various Tokens on blockchain and becoming acquainted with that Tether supports namely usdt eurt cnht .Will look into Kucoin.Don’t like the idea of going through the hoops regards KYC .On my reread list lol

  4. Great article and very useful information Corey. It’s very important to understand the basic principle of how to work with the crypto industry because all functions and transitions are under your control. as suggested above, it’s important to double-check sending address and also your receiving address, since one missing character funds could be lost and never recover. It did happen to me once. The person gave me incorrectly her wallet address, which I discover after was too late.

  5. Wow there is no doubt the crypto industry is far complicated than most of us could ever imagine. Thank you for your detailed information I am sure some devotees will make great use of it. I think I might stick to Compumatrix and bitcoin.

  6. Thank you Corchi, for great information about tether, stabilizing the value of cryptocurrencies,with the use of Tether, investors try to keep its value stable in market,Tether (USDT) is profitable investment based on our forecasting,It is important to understand all this information because this is the crypto era and we have to move forward with it.Thank you for sharing us. 

  7. Wow, Corey, that was a lot of valuable information in regards to the use of Tether. As of this moment, I feel I may never use these, But! sometime down the road I may change my mind, and it is very good to know I can search for your well-thought-out article and learn by re-reading and re-reading! We can never have access to too much info!

  8. Thanks Corchi , interesting information on the USDT ( tether ) This is very timely info for some people I know that are going to get some USDT. Today , this morning …I also watched some YouTubes on the USDT ( tether ) to also fill in some gaps in tether to find more info on it. . Then I came in here to find you blog. Thanks again for filling in some more blanks.

  9. Nice explanation Corey. I have liked Tether for not only USD transactions peer to peer, but also for a conversion from Highs. It is a safe token to trade to when BTC hits a high. Exchange for USDT, while the dip is ridden out, then buying BTC (or any other crypto) at the bottom to ride it back up again.

    A great “hedge” against alt’s losing as much value as the coins you are trading out of. There are even places that will pay holders as high as 12% a year, just to store Tether on their platform.

    1. Wow that’s some good information. I agree with you when trading the Alts on these btc highs. I feel the same pressure to avoid that in some situations.

  10. I am still confused as to what to do with tether however this blog was a start, thank you Corey for that.
    I will do more investigating like YouTube as suggested by Avery Nickerson. Don’t relish however opening more accounts like on KuCoin but who knows this might not even be needed …. here’s hoping 🙂

    1. Loes, this was simply for your education. You may not have to do anything with their technology. It’s simply another avenue of liquidity. I am not recommending the use of Tether or Kucoin. Simply used them as a form of reference. I would not recommend setting up anything unless you need it one day. Thanks for reading.

  11. As I read your informative blog Corey, I realize that the younger generation and those yet to be born into this world of cryptocurrency are indeed the fortunate ones. Most old timers like myself have a more difficult time grasping and understanding this new world.
    I like hearing and learning about the new developments in this field that crop up almost daily.
    I am more comfortable sticking to what I am more familiar with in Compumatrix at this time, but who knows what tomorrow may bring?

    1. You are exactly right Gloria. Who knows what tomorrow will bring. We need to keep up with those younger generations. They are catching up:)

  12. Thank you for this knowledge regarding Tether. Something I had heard of but had no idea what it was about. You have helped clarify some of that but I have a long way to go to understand and use it. I will continue to learn about it as it seems like the way to go for crypto transfer. I too will watch You Tube for more help and understanding. It would be fun to use to think.

    1. It’s great to understand what all the acronyms mean and do. There are so many partnerships and abbreviations that we are reading about in crypto. Glad you enjoyed.

  13. A very important topic to address corchi124 / Corey, and I appreciate the effort! I need to do quite a bit more study and a re-reading of this material, in order to fully comprehend it’s usage for me. I do realize that ‘tethering’ is like tying things together in order to accomplish a goal, and then a fee is charged. And in this case the people who set up Tether have done so with security and safety of protocol in mind, and that is worth a fee, and theirs obviously is among the smallest, and so worth the effort of more study! Thanks once again! Keep up the good work!

    1. Thank you . Yes I do see more and more exchanges and wallets incorporating their technology. It appears in my research that the fees were minimal and to accommodate the miners transactions. As we all know the fees will be dependent on the exchange and or servicing wallet in addition to the smaller miner fees.

  14. Thank you, for the explanation on Ethereum and the various coins that I have read about, but had no idea what to do with these coins or where they come from. Reading these blogs are all about the share of information. I am so thankful for this business, because our learning should never cease. I am looking so forward to the future of this fantastic company. We can all benefit with sharing information to attain understanding even though its a ball of confusion now.

  15. O my goodness, talk about going down the rabbit hole. That was me as I began reading this blog. My understanding of bitcoin is extremely basic but I can work with it. Now you throw in stable coins and my head almost explodes. So down the rabbit hole I go. What is the purpose for using stable coins, why would there be a need for such a thing and how is using a stable coin easier than fiat? Having a hedge against price fluctuation kind-of makes sense – since 1-1 would be parity with some fiats. But stable coins, as explained, are limited – the way I understand it they are designed to be 1-1 only with certain fiats. However, my understanding is the new quantum financial system creates 1-1 parity across all systems and countries that have signed up? Again, my knowledge of cryptocurrency is very, very basic and I’ve yet to learn all about the new QFS. Needless to say, this blog got my mental juices in an uproar. To be continued. Thanks

  16. Well tried to comprehend all that is in this blog and it is a chore to get it all in one reading. This is one that needs to read many times and reread many times more even then,hopefully it will sink in…hopefully. But thanks for the info.

  17. Thank you for the information, We learn something new everyday. This is something i need to study up on and get to understand it more closely, Seems there is so much out there any more, that it is hard to understand what is the right or wrong way to proceed. Thank you again.

  18. Thank You so much for this Blog. It is so informational and worth studying.
    .I will be taking notes and study this blog because I am interested in obtaining USDT
    and wallet. There is still so much for me to learn about Crypto and different wallets and Compumatrix Blogs are an awesome source of information.

  19. You did a thorough job of explaining Tether, Corchi. When I think of a tether, I see a line, strap, leash etc., that holds a person or animal connected. The Tether allowed freedom of movement in a controlled manner. As I read your blog, I had moments of comprehension of Tether in connection to cryptocurrencies. I will save this blog to read again and maybe again. Your layout and explanations of Tether and the different coins are easy to read. Thank you.

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