Use of cryptocurrencies by companies and businesses to drive their transactions and securing assets has gained a lot of momentum in the last ten years. Their ability to secure people’s cash and work free from influence by central authorities has made them attractive to more people in the society. In this post, we bring you a comprehensive review of Tether.
- 1 What is Tether and when was it established?
- 2 How does tether work?
- 3 The core features of tether network
- 4 The main pros of using tether
- 5 Cons of using tether network
- 6 Tether Price
- 7 Where to Buy and Sell Tether in Australia?
- 8 Conclusion
What is Tether and when was it established?
Tether is the latest blockchain platform that operates like BitReserve by allowing users to attach their cryptocurrency to the conventional currency. It is the first real-world cryptocurrency platform based on the highly popular Bitcoin blockchain. It made it possible for the verified exchange clients to fund their accounts and even withdraw their US dollar balances without using the conventional banking model. The platform was founded in 2014 by Reeve Collins who focused on the first task of integrating it with Biffinex to allow a flow similar to the conventional banking.
The main goal of the Tether is accelerating blockchain technology by enabling individuals to apply currencies they are familiar with but on a more enhanced and decentralized manner. This allows the user to leverage their platforms because they are allowed to make deposits in US dollars. The dollar is converted into tethers that are stored either in the online or offline network.
How does tether work?
Since its inception, tether works on optimizing its operations to help address the key issues that have plagued most Bitcoin traders and challenges when interacting with the conventional banking system. It particularly ensures that the user can be able to look at the conventional currency in the same way that cryptocurrencies operate.
To join and start using the tether platform, you can be either an individual or corporate entity. A thorough verification process is done through the review of the personal identification document and proof of address. You will also be required to supply personal financial statements that indicate your status over the last couple of months.
Once you have fully registered for tether, you are required to download the blockchain platform in your system. This is the beginning point to interact with other users in the system.
Instead of working on their individual cryptocurrencies, the tether team opted to ride on other developed currencies. By leveraging on Bitcoin, it means that tether can focus on other areas of the technology to deliver better services to users. For example, tether supports 3 conventional currencies, Yen, Pound, and Dollar that allows users enjoy both the fiat and cryptocurrency in the same framework. The ultimate effect is better price discovery, enhanced liquidity, and market transparency.
The core features of tether network
The centralized storage and decentralized transfers
Unlike other cryptocurrencies that are tirelessly working on decentralization, Tether still holds to centralized storage for some of its data. Every token detail is backed by real conventional cash that is stored in a real and insured bank.
Tether tokens are digital asset databases that users buy and circulate in its system. Since inception, Tether has issued $319 worth of tokens. Note that tether tokens can be recovered through SWIFT bank transfers by utilizing gateways provided in the tether networks and Bitfinex.
The tether tokens are easily transferable on the Bitcoin network utilizing the highly advanced Omni protocol. This is a form of technology that builds a layer on top of the Bitcoin system so that Tether can generate its own assets.
The main pros of using tether
- It uses the strengths of the previous networks especially Bitcoin.
- The focus of Tether framework is helping users to bridge the conventional financial system with the cryptoworld. This has made it easy for more people to associate and use its framework.
- It is considered one of the most potential systems in the cryptocurrency world today. Therefore, a user expects to gain more because the developers are highly committed.
- The system allows users to carry out their transactions using Tether-USD without needing to first convert to Bitcoin.
Cons of using tether network
Tether is not a cryptocurrency on its own. Rather, it rides on other cryptocurrencies especially Bitcoin. Therefore, the flexibility of its operations is always tied to these new cryptocurrencies. What this means is that you can perform whatever transaction you wish to carry out in USD using Tether-USD without having to convert to Bitcoin first or worry about exchange rates.
Where to Buy and Sell Tether in Australia?
Crypto Currency for Fun recommends buying Tether at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Tether and they offer Instant Delivery or your coins right into your account.
Tether system has demonstrated that the current fast advancing block chain technology can be articulately linked with the conventional banking system to deliver greater value. Its ability to layer operations on top of other cryptocurrencies has helped it to build synergies and remedy many shortcomings such as rigidity experienced in Bitcoin. It is this cooperation that has made Tether becomes one of the latest blockchain platforms with the greatest potential for growth.