If you are new to the crypto space you might have come across USDT and mistaken it for US Dollars. Actually, you are not far off, that is exactly the intention of the development team behind the token.
Tether (USDT) is a digital asset based on the Omni Layer Protocol issued on the Bitcoin Blockchain. Its’ most distinctive feature is the ability to back every USDT with the equivalent amount of US dollars, redeemable by holders upon request through the Tether Platform. USDT could be seen as a cryptocurrency just like Bitcoin allowing users to transfer, store and spend accordingly as long as their wallet is Omni Layer enabled (Omni Wallet, Ambisafe or Holy Transaction). Created to replicate the value of national currencies, Tether provides an alternative to store value in the highly volatile Crypto market. Tether has no transaction fees, although external wallets and exchanges may charge one.
Image credit: Cointelegraph
Using tools provided by Omnichest.info, investors can easily check the amount of USDT in circulation on the Bitcoin Blockchain. This number can then be compared with audited bank balance statements issued by Tether Limited through their Proof of Reserves system.
Use Case for Individuals
USDT offers a solution for a wide range of individual investors according to their whitepaper. From day traders; to long term investors looking to store their Bitcoins securely; to tech¬ savvy shoppers looking to avoid credit card fees or maintain their privacy; to philosophical users looking to change the world; to those looking to remit payments globally more effectively; to those in third world countries looking for access to financial services for the first time; to developers looking to create new technologies; to all those who have found many uses for Bitcoin. The main universal applications are as follow:
● Transact in USD/fiat value, pseudo ¬anonymously, without any middlemen/intermediaries
● Cold store USD/fiat value by securing one’s own private keys
● Avoid the risk of storing fiat on exchanges ¬ move crypto¬ fiat in and out of exchanges easily
● Avoid having to open a fiat bank account to store fiat value
● Easily enhance applications that work with bitcoin to also support tether
● Anything one can do with Bitcoin as an individual one can also do with tether
To conclude, USDT with the help of Bitcoin Blockchain strives to provide users with a price-stable asset for national currencies in a safe and transparent manner.