Tether is still a relatively young, but very special digital currency. Through Tether, it is possible to store, send or receive digital tokens (Tether Coin) worldwide in real time. The tokens are firmly bound to their respective original currency.
How does Tether work?
The blockchain on which the Tether coins exist uses the Omni protocol. This protocol is open source and connects to the blockchains to execute the conversion of the crypto tokens.
The differential, however, is that the currencies are always 100% secured by fiat currency. This also means that the price is static, and always the same as the fiat currency. For example, 1 tether USD equals one dollar.
Tether is also extremely transparent. The reserves of the fiat currency are always visible on their website. The value to be read includes all Tether coins that are currently in circulation.
Of course, that also means that Tether can not be simply mined, just as you can not speculate on its price. This one always stays the same. Of course, this way Tether can not just crash and cause big losses.
Tether therefore provides a very stable cryptocurrency, whose conversion into fiat currency or vice versa brings only very low costs. The shipping of Tether between wallets is even completely free of additional costs.
Which currencies does Tether support?
At the moment Tether supports only US Dollars and Euros. These are shown as USD ₮ and EUR ₮, respectively. However, it is planned that Tether will eventually be able to support all major currencies. The next supported currency will therefore be the Japanese Yen, whose token name will then be JPY ₮.
Who can use tether?
Pretty much anyone can use Tether. Companies, as well as stock exchanges, payment services, wallets and financial services can use any of the Fiat currencies through the blockchains.
By being able to handle Tether easily and making conversions that cheap (even free between Tether Wallets), some of the largest companies have already integrated into this system.
But of course, individuals can easily trade with tether. All you have to do is create a tether wallet or use another platform that supports tether.
The company also wants to make Tether usable anywhere in the future, even in places where no cryptocurrencies are currently accepted.
Tether is committed to working transparently and securely. For this, the company must also comply with all regulations and laws. There are countries and US states where there are no clear rules for virtual currencies. Users who are in such areas are therefore severely limited in the use of tether.
You can not access the tether services from there. This means that they can not log into Tether.io nor do any transactions with Tether unless they are in an area that supports Tether.
Here is a current list of countries to which these restrictions apply:
- Saudi Arabia
- North Korea
- Bosnia and Herzegovina
Furthermore, the following US states:
- New York
The Tether Wallet
Tether can be stored in the Tether Wallet on Tether.io. Here you have the advantage that there are no extra costs for transactions between the wallets.
But there are also external wallets on other platforms that support tethers. In this case, sending a Tether.io Wallet to an external wallet is also free, because Tether takes the resulting blockchain fees. However, transactions outside the Tether platform may incur costs because the company has no control over them.
Is Tether safe?
Tether, unlike other cryptocurrencies like Bitcoin or Ethereum, is said to be stable because it is tied to a real fiat currency. Nevertheless, there is a great debate as to whether the price is hedged by a real monetary value – because only then can the price be hedged.
Official website: https://tether.to/