Tether differs from other stable coins in that it is provided with cash, that is, each token is provided with 1: 1 base asset, such as a currency issued by the Central Bank (for example, the US dollar or euro) or other goods (for example, gold).

To this end, Tether Limited drives several tokens of stablecoins: USDT (tied to the US dollar), EURT (tied to the euro), CNHT (tied to Chinese yuan), Xaut (attached to gold ounce) and MXNT (attached to Mexican peso).

Stebblecoins also have many other advantages of cryptocurrencies, such as the lack of borders, the ease of transfer at low price and participation in the market, which is discovered 24/7/365, providing a modern approach to money and a potential alternative to the traditional financial system.

It is important to note that each token is provided with assets stored in reserves, so that anyone can exchange their cryptocurrency for the basic asset. The company issues quarterly reports with a detailed description of reserves and posts them on its website, where anyone can familiarize them with them. In addition to cash, the company also holds corporate bonds, loans and various cash equivalents (for example, US treasury bills).

Who created Tether? Stablecoin was created in 2014 by the Tether Limited startup, whose co -founders were the early supporters of Bitcoin Broke Pierce, Rive Collins and Craig Sellar, as well as Ifinex - the same maternal company as the Bitfinex cryptocurrency exchange.

Stablecoin was first released under the name Realcoin in 2014, and the first tokens were distributed on the Bitcoin network through the Omni Layer protocol - the platform used to create and trade digital assets over Bitcoin.

For some time, the company caused controversy due to the fact that it could not provide auditing financial statements confirming the availability of sufficient reserves to ensure its tokens. However, since March 2021, the company has issued quarterly reports with a detailed description of its reserves.

How does Tether work? Tether Limited accepts deposits and removes funds from users and minute (creates) and burns (destroys) tokens depending on demand.

If the user wants to get a USDT, he can send cash to Tether Limited, which stores the asset and proceeds with the USDT mining, after which he sends the cryptocurrency back to the user. Anyone can at any time send USDT back to the company and exchange them for cash, encouraging the company to burn the received USDT, which helps to keep the balance under control.

Tether follows the iOU model in which the central organization (Tether Limited) supports the cost of stablecoin, so that investors can redeem their stablecoins when they wish. Thus, the system relies on the system of evidence of reserves (por), when the third party conducts an independent audit to make sure that the company really owns the assets that it claims.

After launching Bitcoin on the network, stablecoins are now available on a number of first -level blockchains, including Ethereum, Tron, Tezos, Algorand and Solana.

Why is Tether convenient? Tether was created to satisfy the growing need for stable currency, which mirrored the traditional fiat, which could make 24/7 transactions in the blockchain ecosystem.

For example, USDT is often used by cryptocurrency exchanges to add new trading couples to their platform. This allows the traders to quickly enter and get out of transactions to protect themselves from sometimes high volatility of crypto assets. In addition, using USDT, traders can easily move their funds to exchanges and exchanges faster and at lower costs than when using traditional currencies.

USDT and stablecoins as a whole can also be used as alternatives to traditional currencies for any type of transaction (even as simple as buying coffee) thanks to the use of blockchain technology for cheap, fast and simple transactions, providing instant calculation 24 hours a day 7 days a week a week .