In the first place, their aim was essentially to create decentralized currencies that did not depend on governments or banks.
Then another concern of the creators of digital currencies was the confidentiality: to be able to possess money and use it in a completely anonymous way.
Finally, a third objective, is the search for more speed for transactions.
Indeed, when one carries out a transfer of fiduciary money, the step is often long and tedious. While for digital currencies it only takes a few minutes and avoids unnecessary paperwork.
But there is still a disadvantage to crypto currencies: we can not transfer virtual currency in the form of dollars, on the account of a customer or a service provider.
It is precisely this problem that Tether answers.
How does it work? E Tether?
The Tether process will encrypt fiduciary money to turn it into Tether.
Initially, all Tether are sent to the Bitcoin Blockchain via the Omni Layer protocol (so it does not have a Blockchain of its own.) This is how Tether exists as crypto currency.
Thereafter it will be like any digital currency, be used, stored, spent or transferred.
As a result, thanks to this technique, fiduciary money acquires all the properties of a virtual currency.
This is therefore a method of exchange of values, decentralized and secure, while using a known unit of account.
And in short, this allows the Tether to have the advantages of crypto currencies while being immune to their volatility.
Finally, Tether works by “proof-of-reservations”, which simplifies the verification process, while guaranteeing an equal amount of fiduciary money.
As for its price, it is fixed permanently at the price of the said fiduciary money; That is, the unit value of Tether is 1 Tether for 1 dollar, or 1 Tether for 1 Euro.
For the moment, the Trust currencies convertible into Tether are the dollar, the Euro and soon the Japanese Yen.
What are the benefits of Tether?
Tether has many advantages for both companies and individuals.
First, it allows its users to perform all the usual transactions quickly and cheaply.
Then it is stable because it is based on the fiduciary money that corresponds to it. For example, as we said, 1 dollar Tether equals 1 dollar Fiat.
Moreover its integration with existing markets is extensive: it is found on major platforms such as Bitfinex or GoCoin …
In addition, its Blockchain technology is transparent and secure.
Finally, it is not linked to market risks or liquidity crises.
If we take the case of the companies, it allows them not to have to look for a good platform of exchange to carry out transactions in crypto currencies. In addition, it reduces the cost of low value transfers, which is often prohibitive, as well as currency conversion fees.
For individuals, Tether is also interesting.
For example, you do not need to have a bank account in currency to store your dollars or your euros.
In addition, you can carry out secure transactions in USD while remaining anonymous and avoiding intermediaries.
For traders, Tether allows them to benefit from a stable cryptocurrency that avoids permanent price adjustments.
They can do anything they are used to doing with Bitcoins, but no problem of volatility or transaction costs.
Finally, it must be emphasized that in all cases anonymity is respected.
The team of Tether
The Tether team is composed of five members, mostly from the Bitfinex platform.
Thus we find the CEO of Bitfinex, J.L. Van Der Velde.
Similarly, Philip G. Potter, who is in charge of strategy at Bitfinex.
Or Giancarlo Devasini who graduated from the University of Milan and who is also part of Bitfinex.
Also on the team is Mathew Tramblay.
Finally, Stuart Hoegen is a Canadian lawyer specializing in the law and regulation of cryptocurrencies. He is recognized as an expert on these issues by the Canadian Department of Finance, as well as the Senate Standing Committee on Banking, Trade and Commerce.
He wrote among others, “The law of Bitcoin”.
How to buy Tether?
To buy Tether, just enter platforms like Bitfinex, ccex, holytransaction or Poloniex.
In addition, you can store them on an Omni Layer wallet. You will not have any transaction fees to pay.
Thus, on these platforms, you will be able to convert dollars or euros into Tether and vice versa.
The price of Tether
As we explained above, the Tether rate is supposed to be equal to that of the dollar or the Euro.
But how is this rate maintained?
In fact, everything is based on a balance between the total dollar amount present on Tether’s account and on those in circulation.
That is to say, for each dollar tether issued, one dollar is saved in the fund of the foundation: this is called the “proof of reserve”.
Also, if you wish, you can check the amounts in his possession on the official website of Tether, because everything is perfectly transparent.
The number of coins in circulation is therefore not limited. The higher the demand, the more this total will increase.
It should be noted that Tether has grown in one year from $ 445 million in capitalization to $ 2.205 billion. This proves the enthusiasm of investors for this currency.
Tether, which is based on the Bitcoin Blockchain, is for everyone: individuals and businesses.
It has the advantages of Bitcoin and Fiduciary currencies without the inconvenience.
For traders, this currency allows them to save their investments when other crypto currencies pass periods of instability. And this without having to go into Fiduciary currencies.