Scallop- USDT

Tether tokens are the most widely adopted stablecoins, having pioneered the concept in the digital token space.

As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratised cross-border transactions across the blockchain and, irrespective of all the controversies it has had overtime, has still become the most popular stablecoin with the highest number of transactions, and a huge market cap.

Tether was launched in 2014 by the company, Tether Limited INC.
The company is owned by a Hong Kong-based company, iFinex INC, that also owns the Bitfinex cryptocurrency exchange.

Tether Limited uses a three-layer structure on each blockchain that integrates with Tether.

These layers are:

  • The blockchain.
  • The protocol (Omni): This was put in place by tether to use their issued coins.
  • The Tether limited itself.

Tether Limited issues an asset-backed stablecoin that benefits from the advantages of both blockchain technology and fiat currency.

These advantages include:

  • Multiple Blockchain support.
  • Unparalleled liquidity.
  • Widespread adoption.
  • 100% backed by tether reserves.
  • Fully transparent

And so much more.

Tether has other representative coins, example:

  • USD — USDT
  • EURO — EURT
  • Peso — MXNT
  • GBP — GBPT
  • Chinese Yuan — CHNT

But for the purpose of this article, we'll be looking at USDT.

USDT has gained a lot of popularity (it is ranked No. 3 in CoinMarketCap) through its unique qualities compared to other stablecoins. The main quality of USDT is that it exists on multiple blockchains most notably Bitcoin and Ethereum.

USDT is pegged at 1:1 with USD($).

USDT achieves this position as a stablecoin by having reserves of assets for every USDT in circulation. This allows USDT to benefit from the simplicity and stability of a fiat currency and the transparency that blockchain technology offers.

USDT and other representative tether coins are available to purchase on a multitude of Cryptocurrency Exchanges; including but not limited to Scallop Exchange.
Remember these are stable coins so their prices don’t fluctuate.
However, if their fiat counterparts increase or decrease in value, the number of goods and services that can be consumed changes.

You can buy USDT on the Scallop Exchange here.

For more insight on Tether, you can read the articles from Scallop learn here.

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Precious

Content Creator || Blockchain Ambassador || Public Speaker || Community Management. Reach out to me: ekerekepreciousimeh@gmail.com