What is Tether currency?
Tether is a digital currency. It’s the digital version of the US dollar (USD). Tether launched by Tether Limited in 2015. Developers claim that the value of the token is secured by the US dollar. The main idea of this project is to provide participants of the cryptocurrency exchanges with the opportunity to use a stable digital asset (stablecoin). Tether (USDT) is tied to the US dollar (USD) actual price.
It was released on the Omni Layer Protocol (platform). Omni Layer is an add-on to Bitcoin blockchain.
Now it works on the Omni Layer and on the Ethereum protocol (ERC-20 tokens).
The Bitfinex Exchange was the first who’s integrated Tether (USDT) token into its service.
What is Tether USDT Used For?
Tether (USDT) converts fiat funds into digital currency and tied to the value of the national currency the US dollar (USD). EURT tied to EURO (EUR) and also JPYT tied to Japanese Yen (JPY).
Tether combines blockchain technology with fiat currencies! This allows you to take advantage of the blockchain features using a currency backed by the US Department of the Treasury or the European Central Bank. Tether Limited converts the US dollar (USD) into digital currency (USDT) and then transfers this digital dollar into the blockchain.
Recently, developers have launched a new stablecoin - Tether Gold (XAUt). Cryptocurrency stability is ensured by a natural gold reserve. A digital analog of precious metal can be exchanged for real gold. The new cryptocurrency is available on the Ethereum (ERC-20 Standard) and Tron (TRC20 Standard) blockchains.
The main goal of Tether (USDT) is to make conversion between cryptocurrencies and fiat currencies much easier.
There are many different companies in the cryptocurrency industry. Tether is integrated with many of them. For example, one of the key partners of Tether is Coinsbank. With Coinsbank, you can use debit cards to make payments in USDT (or EURT).
Tether is based on strict adherence to international standards and laws. The company operates in all countries where digital (virtual) currencies are regulated. Сustomers checking, documents maintaining and following all legislative procedures helps to ensure the comfort of partners. Tether Limited systematically carries out professional audits. It provides additional user security.
Tether (USDT) is easy to use. All operations are carried out in a cryptographically secure environment. It can be used by individuals and legal entities. Tether (USDT) integrates seamlessly with wallets, companies, etc., like Bitcoin. It provides decentralized sharing, high-level security, and transparency.
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How does USDT Tether work?
The principle of Tether (USDT) work is as simple as possible.
The Omni Layer Protocol (Mastercoin) is open-source software that interacts with the Bitcoin blockchain. The protocol provides the issuance and redemption of cryptocurrency tokens based on the Bitcoins used to create digital tokens. Tether transactions are hashed and conducted through the Bitcoin blockchain, where they are verified by miners as well as other Bitcoin transactions. Each Tether transaction in Omni is recorded in a BTC transaction, shares the same transaction hash and confirmed on the Bitcoin network. The average transaction confirmation time is 10 blocks.
The Omni Layer Protocol uses the Bitcoin blockchain to add additional features:
- Smart contracts
- Custom currencies
- Decentralized peer-to-peer exchanges
The main advantages of The Omni Layer Protocol are the security and stability of the BTC network. Omni nodes are also Bitcoin nodes. As a result, the security and reliability of the Bitcoin network are also increasing.
All Tether (USDT) in Omni Layer are “tokens” in the BTC blockchain. Any wallet or exchange that supports BTC transactions will automatically support Tether (USDT) transactions. No software upgrades required.
The use of the Bitcoin blockchain has its drawbacks:
- Large commissions
- Low Transaction speed
- Block size limit
Not so long ago, Tether made the integration to the Ethereum blockchain according to the ERC20 standard. Tether (USDT) has become compatible with dAPPs. Significantly increased transaction speed (15 seconds on the Ethereum network vs 10 minutes on the Bitcoin network). The commission becomes less.
ERC-20 stands for Ethereum Request for Comments. This is the official protocol of Ethereum for receiving proposals to improve the blockchain. The number “20” is the identification number of the proposal. Most of the popular crypto tokens are based on this standard.
Ethereum tokens used to have unique smart contracts. Many of them had compatibility issues. In order for exchanges and wallets to support the each new token, developers had to write a completely new code.When thousands of different tokens appeared, the problem became very serious. The advent of the ERC-20 standard has solved this problem.
Tether now works on two protocols. When sending funds, make sure to verify the address of the recipient. Tether's Omni addresses start at “1” or “3” - just like Bitcoin addresses. Ethereum addresses start at “0x”.
Very important: you cannot send money to the Ethereum network from the Omni network. Also, you cannot send or exchange your ERC20 USDT to OMNI USDT.
So, Tether is secured by real currency. And it’s protected as well as the Bitcoin blockchain and the Ethereum blockchain. Tether is a secure stablecoin.
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How does Tether stay on $1?
Tether is secured by actual currency assets in the reserve account of the Tether platform. Each Tether is 100% backed in a one-to-one ratio by the fiat currency unit held in deposit by Hong Kong based Tether Limited (i.e. one Tether USDT equals one US dollar) However, on April 30, 2019 Tether Limited announced that only 74% of the tokens are secured by the US dollars. Most of cryptocurrency community members believe that USDT are 100% backed by the US dollar. The price for 1 USDT in the market very rarely deviates from 1 US dollar.
Can Tether Be Mined? USDT Mining
USDT mining is impossible. You can only buy it:
- For Fiat on the official website. You need to register and pass verification.
- On cryptocurrency exchanges
- Exchange on Guarda Wallet
Best Tether (USDT) Wallet
Easy, fast and secure wallet for USDT is Guarda Wallet! Creation will not take more than 1 minute!
Guarda Wallet is a Multi-Currency wallet. You can store Tether (USDT) buy, sell and exchange it for:
– Cryptocurrencies (Bitcoin, Bitcoin Cash, Bitcoin Gold, Dash, Ethereum, Ethereum Classic, Binance Coin, Cardano, EOS, Litecoin, Ripple, NEM, NEO, TRON, Tezos, Zcash, etc.),
– Tokens (Guarda Wallet supports all ERC-20 tokens, ERC-721, BEP-2, TRC10, TRC20, WAVES, OMNI, EOS etc.),
– other Stablecoins (Binance Coin (BUSD), Usd Coin (USDC), True USD (TUSD) etc.
The minimum amount to enter is 1 USDT. A commission of 1 USDT for this operation. The minimum amount that a user can withdraw is 1 USDT. It is important to note that Tether doesn’t charge a withdrawal fee USDT Guarda Wallet has top-level of encryption and it is light (non-custodial). Cryptocurrency management in the Guarda Wallet belongs only to the owner. Guarda Wallet does not store your funds. We simply provide you fast and easy-to-use software, with a convenient user interface. Your wallet is protected by your Password and backup file stored on your device (PC or smartphone).Guarda Wallet doesn’t have access to it.
- Choose “Create a new wallet”
- Create an original password for access to your wallet. DON'T LOSE YOUR PASSWORD! It is better to create a password not shorter than 8 characters and use capital letters and numbers. Then click “I’ve written it down”
More details in Knowledgebase .
- Please wait for a few seconds! Your Guarda Wallet is creating now!
- Now, you need to save your backup file and keep it properly as well as password. It ensures access to your funds. Remember, that access to the wallet is possible only using both the password and the backup file. Guarda Wallet does not keep nor is able to restore your backup and password. Only you have access to your wallet.Now, Click on “Download backup”
- The backup file automatically saved to your hard drive in the TXT format. That’s all! You are in your Guarda Wallet! Find Tether USDT in Bitcoin tokens in the list in the left column, click and you will see your USDT Wallet.
- Go to the Apple App Store or Google Play Store.
- Find Guarda Wallet and download it to your device. Click on the button "Create a wallet"
- Create a New Wallet.
- Choose a password, however, make it hard enough so that attackers cannot compromise it.
- Make sure to keep your passwords in a safe place, because if you lose them, then you will not have the opportunity to restore your wallet.
More details in Knowledgebase .
- Wait a couple of seconds while the program will render the wallets for you. Numeric keys, commonly known as private keys or master keys, take the form of hexadecimal codes. At first glance, it looks intimidating until you find that it is flexible enough to be recorded, printed on paper, printed on a document, converted to an image, or even remembered.
- Download backup to always be able to import your wallet.
- Go to the USDT Coins tab, and under the QR code (also you can scan it because QR is a wallet address itself), you will see your wallet where you can transfer funds from the Binance trading platform.
It is also important that the wallet does not have access to user information. All private keys are stored locally on the end-user device to let users have complete control over their funds. During the installation process, a backup copy of your wallet is created and all information is encrypted. Users can also add various biometric token authentication systems to the wallet, such as a Face or Touch ID. These features make Guarda one of the best coin wallets on the market.
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