Tether was launched in 2014, it is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. 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. As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratised cross-border transactions across the blockchain.
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 interface 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.
How Tether holds its value at one dollar has increasingly become a source of controversy. Tethers are supposed to be issued by Tether Limited ‘1 : 1’ when a customer deposits US dollars. The value of Tether in dollars (USDT/USD) does fluctuate but tends to remain very close to one.
The Tether Platform is fully reserved when the sum of all Tether tokens in circulation is less than or equal to the value of our reserves. Through our Transparency page, anyone can view both of these numbers on a daily basis.
Tether was originally created to use the Bitcoin network as its transport protocol—specifically, the Omni Layer—to allow transactions of tokenised traditional currency. Since this original version of Tether uses the Bitcoin blockchain it inherits the inherent stability and security of the longest established blockchain network.
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 need to carefully check the destination address to confirm they are selecting the correct transport protocol.
Most individual cryptocurrency traders will buy Tether on a cryptocurrency exchange like Binance, Kraken or Coinbase. You open an account with any one of these companies or others, deposit fiat currency and use it to buy Tether or any other cryptocurrency.
we can store the Tether in cryptocurrency wallet such as Trezor, Ledger, Exodus or Mycelium to keep their coins as safe as possible.
Tether has been used in trillions of dollars-worth of cryptocurrency trades and there have been very few, if any, reported issues of people finding it difficult to get their money back into US dollars when they want to. If such an issue to become commonplace, the resulting loss of confidence would see users flock away from using Tether.