As long as you don't need to exchange your digital currencies for actual cash, stablecoins allow you to simulate the function of regular cash within the cryptocurrency - specifically, its job as stability. As much as we all love cryptocurrencies, stability is something most of us need - and most cryptocurrencies Among these stable currencies
that we will talk about today is the (USDT), which is popular and feared, larger than any other stable currency

What is The Tether(USDT) ?

Source

---

Tether is a stable cryptocurrency
(its price does not change) It is built on the blockchain and is backed by an equivalent amount of traditional fiat currencies, such as the {Dollar, Euro or Japanese yen} which are held in a specific bank account.
Tether currency symbol is (USDT ) Each 1 usdt is traded for $ 1
and is ranked 4th in Coinmarketcap
It was created in order to protect traders and investors from the dangers that arise from the volatility of digital currencies.

Tether (USDT) was first launched in July 2014 under the name Realcoin. A few months later, in November, [ Realcoin ] was rebranded to Tether to avoid association with other cryptocurrencies.

Tether Limited publishes the balance of the bank account on its website page (Transparency) to prove that the amount of (USDT) in the bank account is the same or perhaps more than that found during the trading process. Professional professionals check and verify member registration, bank account statements and money transfers.

Advantages of Tether(USDT)

Source

---

It has many features, the most important of which are:

■ Tether coin stablecoin:

• This feature is one of the most important advantages of this digital currency, and you obtain this stability by converting monetary currencies into a digital currency in order to preserve the value and link it to the price of national currencies and establish them, such as the Dollar, Yen, Euro, and others.

■ Tether currency is transparent:

• Whereas, the currency is supported by a 1: 1 ratio of the traditional reserve currency, and this means that the dollar maintains its value regardless of fluctuations, as one US Dollar is equal to the same value upon fluctuations.

■ Completely safe:

• Tether coin technology provides global security by supporting Blockchain technology, in addition to its adherence to standards and regulations of international compliance rules.

Disadvantages of Tether(USDT)

Source

---

The USDT coin differs from other digital currencies in terms of disadvantages, as it does not have huge defects that limit trading through it, but it is the only disadvantage it faces is

■ The impossibility of mining Tether(USDT)

• This is because the mining process is not in line with the goals for which that digital currency was launched, and is not compatible with its nature that is permanently linked to the value of the US Dollar.

What are the uses of Tether(USDT)

Sourse

---

The USDT currency is used to achieve many goals, including:

■ Trading platforms:

• The Tether process can be used as an alternative to cash withdrawal and deposit methods, and balances can be settled in a faster and easier way between exchanges, as well as used in encryption of investor asset data.

■ Blockchain companies:

• The user can set prices and services to customers in a familiar currency, which is Tether, in addition to providing services in a variety of digital currencies, and also contributes to reducing operating costs and time by bypassing financial institutions.

■ Traders and individuals:

• Tether coin allows the transfer of currency to more than one wallet and platform in a smooth and safe manner, and it deepens the mechanism of exchange between currencies, and enables them to preserve the value of money and not face the risks of price fluctuations.

The beginnings of the creation of Tether(USDT)

Sourse

---

Originally, Tether was using the Mastercoin protocol, but since 2015 it has changed to the Omni protocol. Omni consists of three layers.

The first is the Bitcoin blockchain, in which Tether transactions are included.

The second is the Omni Layer Protocol, which basically introduces new rules without changing the basis of Bitcoin.

The final layer is Tether Limited - the commercial entity, whose responsibilities are to control the creation and revocation of USDT, publicly report Proof of Reserves and manage the technology behind Tether in order to increase its adoption.

For further expansion, the company has designed a usdt token to be found on the Ethereum blockchain and another on the Tron blockchain, and there is also a plan to create it on the IOS blockchain.

Crypto Academy Week 6 Homework Post for [@yohan2on] | Stable coins

---

Cc:-
@yohan2on
@steemitblog
@steemcurator01
@steemcurator02

#yohan2on-week6 #stablecoins #cryptocurrency #steemit #uganda #trading