I. Introduction to USDT
Teda Dollar (USDT) is a dollar-based token with stable currency introduced by TEDA Company. USDT 1 USD = 1 USD. Users can exchange USD for USDT at any time. The tether company strictly abides by the reserve guarantee of 1: 1, that is, every time it issues 1 USDT tokens, its bank account will be guaranteed by 1 USD. Users can query funds on the tether platform to ensure transparency.
Second, the past life of USDT.
2014165438+1In late October, Realcoin Company registered in the Isle of Man and Hong Kong was renamed Tether.
When 20 15 was released in February, bitfinex, the trading platform with the largest transaction volume of bitcoin futures, announced that it supported TEDA (hereinafter referred to as USDT) trading.
Subsequently, the Polish Exchange, a competitive currency trading platform, also supported USDT. With the strong rise of Ethereum, P-network has the leading potential in the competitive currency trading platform, which is also helpful to promote the trading volume of USDT.
The issuance and transaction of USDT uses the Omni (original primary currency) protocol, and Omni currency can be said to be the first 2.0 currency based on bitcoin blockchain in the market. Therefore, the transaction confirmation and other parameters of USDT are consistent with Bitcoin.
According to Craig Schmidt, chief technology officer and co-founder of Tether, users can wire US dollars to Tether's bank account through SWIFT, or convert them into USDT through Bitfinex exchange. When exchanging dollars, the reverse operation is enough. Users can also exchange bitcoin for USDT on the above two websites.
Its website claims to strictly abide by the reserve guarantee of 1: 1, that is, its bank account will be guaranteed by 1 USD for every token issued by 1 USD.
In terms of compliance, all operations involving legal tender require users to complete KYC authentication. When asked how users can verify the deposits in bank accounts, Craig said that legal tender is kept by Tether Liminted Company and audited regularly, but at present, users can't directly check the deposits.
At present, the transaction volume of USDT is the largest among all stable virtual currencies.
3. Some main features of 3.USDT:
1. Stability
Because Tethers(USDT) is supported by real-world currency storage, it claims that users can enjoy the benefits of transactions based on numbers and blockchains without being affected by fluctuations of most cryptocurrencies.
2. Transparency
Tether said that its statutory reserve account will be audited regularly to confirm that its reserve account can actually support the circulating value of tether(USDT). The balance will be updated regularly and can be publicly accessed at any time. All tethered transactions are recorded on the public blockchain.
3. Minimum transaction cost
When remittance is made between two tether accounts or any two blockchain wallets that can store tethers, there is no transaction fee. However, the conversion of USDT into legal tender may require paying some service fees or transaction fees to the parent company.
4. Advantages and risks
The biggest advantage of USDT is that it can ensure that investors' assets in the currency circle will not shrink with the ups and downs of the market. Equivalent to the same amount of US dollars, 65,438+0 USDT = 65,438+0 US dollars, which is a good hedge token in the volatile cryptocurrency market.
The biggest risk of USDT is that Tether's distribution is completely centralized, that is, the distribution, acceptance, regulatory risk and operational risk are all concentrated in Tether company.