Tether is bitcoin-based cryptocurrency which allows users to send, receive and store digital tokens by mirroring the value of the actual currency. Initially, it allowed only the USD but later on added Euro and Yen in the list. The main idea behind this project was to bless the world with a stable currency.
The digital currency/coin serves as an alternate of actual money in any supported currency. For example, if anyone can buy 1 Tether for 1USD and store it as the actual value of its amount. That is the reason why Tether token price is never assumed to be increased.
A list of high profile technical people is influencing Tether’s growth.
- JL VAN DER VELDE - Chief Executive Officer
- GIANCARLO DEVASINI - Chief Financial Officer
- PHILIP G. POTTER - Strategy Officer
- MATTHEW TREMBLAY - Chief Compliance Officer
- STUART HOEGNER - General Counsel
Hong Kong-based company Tether limited reserves the equal amount of money after each tether circulation. Which means that it works on a one-to-one ratio, each tether backed with an equivalent amount of fiat currency. Tether is the third party in between sender & receiver for fund reservation. Its platform consists of three layers:
The first layer is Bitcoin blockchain layer. The second layer of the whole process is Omni protocol layer, which makes it possible to create and destroy digital tokens. Last but not least is the third-party layer of Tether Limited.
- One token bought in USD is always equal to one USD which eliminated the risk associated with digital currencies
- Based on a stable framework of bitcoin
- A large number of international partners i.e. Poloniex, Ambisafe, Space Shift
- Available in universal language English
- Proof of Reserve: all of the coins are backed by the equal amount of currency
- No independent mining is expected in future
- Statements about the public audit are never fulfilled
- Even being called decentralized; its assets are reserve centralized
Official papers are published on the website where technology stack and process are briefly described along with the concept of Proof of Reserves process. They have also addressed the current market risks which exchanges, and users are facing while using traditional methods.
Tether has simple usage terms where anyone can use it to buy bitcoins or any other cryptocurrency. It is listed on more than one exchange where it can be easily used and transferred from one exchange to other. There is no fee charged while transferring money except external wallets and exchanges; they may charge a small amount respective to their rules.
Almost every crypto project makes big statements like being real-time, transparent, audit confirmed and proof of reserves, but only a few of them actually fulfills those promises.
Multiple layers of Tether relief other exchanges from a number of complications and add extra benefits in the transaction process. It allows people to use crypto fiats to deposit, withdraw and store without need of bank and financial institute. This is proved to be a more cheap, quick and efficient way of reserving same value of money.
- JEAN-LOUIS VAN DER VELDE CEO of Bitfinex
- TRISTAN D'AGOSTACEO and Founder of Poloniex Exchange
The main goal was to link a digital currency with fiat currencies. Now they are focusing on adding more currencies in their platform to widen its market. Recently they have announced to add Yen in their currency list, which make it easier for traders and other exchanges to collaborate on a mutual platform where transaction cost is lessened, and speed is faster than traditional hold and transfer methods.
Tether became popular in 2017 when arise in bitcoin price was related to its growth. Till to the date, Tether is releasing coins with a significant number of digital tokens. All this clearly shows the boost expected for this project in future but there are still a group of crypto analysts is not agreeing to choose it for any investment because of unreliable information posted on the internet.
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