Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. Tether works to disrupt the conventional financial system via a more modern approach to money. It has made headway by giving customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity typically associated with a digital currency. As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratized cross-border transactions across the blockchain.
Tether’s USDT stablecoin belongs to a new breed of cryptocurrencies that were developed in order to maintain stable value, something that is fundamentally lacking from traditional cryptocurrencies. Pegged against the US dollar at a 1:1 ratio, Tether builds the necessary bridge between fiat currencies and cryptocurrencies while ensuring stability, transparency, and minimal transaction charges to users.
Tether tokens exist as digital tokens built on Bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP, and OMGblockchains. These transport protocols consist of open source software that interfaces with blockchains, allowing for the issuance and redemption of USDT tokens. Being 100% backed by Tether’s reserves, Tether tokens are redeemable and exchangeable pursuant to Tether Limited’s terms of service.
Tether is facing severe accusations of using public money for funding its own investments and putting the reserves at risk. Tether refutes these claims saying it is yet another attempt to defame the company.
With UPC, one person in Peru will not have to worry about sending the Peruvian Sol to someone in Ghana. The design of the UPC is billed to make it feasible to easily convert the Sol to Cedes and be cashed easily by the recipient.
In a highly controversial transaction, Bitfinex ended up paying a staggering 7,676 ETH for transferring just $100K worth of USDT. The miner of the block, however, has confirmed to return the transaction fee amount.
