Today another token will be introduced in our column “What’s on weiDex”.
Say hello to Tether (USDT)!
- About the project
Tether is a cryptocurrency with a fixed price measured by a fiat currency, which means it is a “stable coin”. By nature, it is supposed to be backed by dollars kept in reserve in a 1:1 ratio. Ideally, this aims Tether to be traded at $1 on all exchanges and to be used instead of a dollar. Being pegged to the US dollar is the key factor for making it stable in price. Moreover, Tether supports also the euro and the Japanese yen. Tether was first built on the Bitcoin blockchain system but was later transferred to Litecoin’s Omni Protocol.
2. Main features
- Tether is a stable currency — pegged to the dollar — 1 USD₮ = 1 USD
- Tether is claimed to be “100% backed by USD” (USD is held in reserve)
- Tether transaction times are completed in minutes
- Tether charges zero transaction fees between Tether wallets
- Tether is centralized, permissioned, and trust-dependent
3. What can the USDT token be used for?
As written in the whitepaper, Tether allows users to “store, send and receive 1-to-1 backed digital currency across tether-integrated exchanges, platforms, and wallets”. Tether allows you to store, send and receive digital tokens pegged to dollars, euros, and yen, peer-to-peer, globally and instantly. It means that users are provided with the combined benefits of blockchain technology and traditional currency enabling money transfers. In contrast to most of the other tokens, Tether incentivizes owners to spend rather than hold the tokens and to use them for everyday transactions.
Website: https://tether.to/
Whitepaper: https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf
CoinMarketCap: https://coinmarketcap.com/currencies/tether/
