What is Tether (USDT) and How It Works?

Aximtrade | 2021-11-02 15:44

Abstract：Tether (USDT) is one of the first cryptocurrencies to be pegged to the US dollar, launched in 2014. Previously known as Realcoin, Tether has been among the top 10 most traded cryptocurrencies in 2021, with a total market cap of over $68 billion and a value of $1.00.

Tether (USDT) is one of the first cryptocurrencies to be pegged to the US dollar, launched in 2014. Previously known as Realcoin, Tether has been among the top 10 most traded cryptocurrencies in 2021, with a total market cap of over $68 billion and a value of $1.00.

What is USDT？

Tether, also known as USDT, is a blockchain-enabled cryptocurrency designed to facilitate the digital usage of fiat currencies. USDT offers customers the ability to use fiat money in transactions across the blockchain in a more stable and simple way compared to any digital currency.

The main purpose of creating USDT was to combine the unrestricted nature of cryptocurrencies with the value stability that characterizes fiat currencies like the US dollar.

How Does Tether Work？

Tether was initially released using the Omni protocol on the Bitcoin blockchain, which allows the issuance of new cryptocurrencies. Being originally issued on the Bitcoin blockchain, Tether inherited the features of stability and security of the network.

As a cryptocurrency, Tether operates in the form of tokens on multiple blockchains including Bitcoin, Ethereum (ERC20), Tron, EOS, Algorand, SLP, and OMG blockchains, and is secured by their algorithms.

Read more on Tetherto find out what it is used for and how do you buy Tether.

Tether