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.
- 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.
2. How to withdraw USDT based on different forms?
Please input the withdrawal address. The system will identify the public chain automatically.
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,