What is Tether?

Tether (USDT) is cryptocurrency backed by real assets. Tether is backed by US dollar to be exact(as they claim).

It is regarded as stable coin since it is stable to the price of dollar and is not unstable like other cryptos.

Tether is built on top on Bitcoin’s blockchain and is integrated with many other blockchain like tron, ethereum and also going to be with Solana .

CoinMarketCap lists tether on number 5 with a market cap of $68, 545,633,035 USDT , this means tether has that much amount of USD to back it up.Tether even acts as a dollar on many changes and people use it to buy other cryptos.Tether has no utility or actual function other than that to be a stable currency pegged with dollar.Tether can also be used a major competitor against PayPal and other companies like it , since it has lower transactions fees and is more faster and convenient.

People have some concern over the fact that Tether does not actually have 1 usd to 1 tether .

This have attracted some critics and in 2019 Tether changed the words and published on their website : “ Every tether is always backed up by our reserves,which includes traditional currency,cash equivalents and,from time to time,may include other assets and receivables from loans made by Tether to third parties ”.

Also Tether is fully centralized and by using it we are depended on a group of people not some consensus mechanism.There are some advantages to it such Tether blacklisted to attackers address when the attack was made on Polygon Network making 33 million USD useless to the attackers.But this also makes it contradictory to the whole concept of blockchain.

Despite its all it’s con and the criticism Tether has performed well enough to be accepted by all changes almost and be on the top of trading pairs.It’s nice to have some stable coins around this harsh world of instability.