Tether Limited is the team behind Tether (USDT) which proposed a new way of maintaining 1-to-1 reserve ratio between the cryptocurrency token called “Tethers”. By utilizing the Proof of Reserves, bitcoin blockchain and other audit methods, Tether ensures that each issued token is fully backed and reserved for all times.
The Tether coin uses blockchain with the Omni Layer protocol. This layer protocol is open-source code software that interacts with blockchain. Tether is supported by the actual currency actives on the reserve account of the platform. The cryptocurrency can be purchased or exchanged for fiat currencies in accordance with the service terms of the company.
The coin is working with US dollars and euros but in the nearest future, it is aiming to add operations with Japanese Yen. The altcoin pegged to these currencies is marked as EURT, USDT, and JPYT. The financial support of the altcoins is carried out by a bank trust operating in Taiwan. The volume ration of issued coins and the financial support can be noticed on the website of the company in real-time mode. The cryptocurrency is also presented on a range of exchanges including Kraken, Bitfinex and Poloniex.
Tether (USDT) can be stored in any wallet which supports the Omni Layer technology or users can find the official Tether wallet which is a software-based wallet developed to store the USDT token on iOS and Android platforms. This cryptocurrency is the first and most popular stabelcoin which mirrors the value of a fiat currency. In volatile crypto markets, Tether can help investors trade in and out of currencies and helping them have more control over their money.
The stablecoin isn’t mined but it’s issued in response to how many fiat currencies the company actually holds. It uses the proof of reserves protocol which makes possible for the fiat reserves to back the cryptocurrency.