What is USDT?
USDT adopts the Omni Layer Protocal. It is a cryptocurrency asset which is issued and used in the Bitcoin blockchain. This is a widely popular market if you have used Bitrex or Poloniex before. How this works is that every USDT (known mostly as US Dollar Tether) is backed by one US Dollar. This is redeemable through the Tether Platform where it is held in the Tether Limited reserves.
Is it same like Bitcoin?
Like Bitcoin, USDT can be used like any other form of cryptocurrency. This means that it can be used quite the same way where you can spend, store or transfer them. The value of the USDT can change as well but not drastic, where people can buy them, store them and then sell them off when the price is right.
Where can you spend USDT?
Since USDT is a cryptocurrency, there are ready markets that will accept them. You can trade and transact USDT in digital wallets that are designed for the Omni Layer platform. This includes:
- Omni Wallet
- Holy Transaction
- and many others
Besides USDT, there are other Tether currencies in the market. This was created to help transfer national currencies and as an alternative to the more volatile crytocurrency like Bitcoin. Besides that, Tethers were also created as a more stable option as well as for exchange and wallet audits. With its Proof of Reserves Process, it offers another option to Proof of Solvency.
What is the Proof of Reserves?
This helps to control the total amount being circulated. In the Tether’s Proof of Reserves, the circulation of USDT in the Bitcoin blockchain can be audited and validated. This is done through Ominchest.info’s tools. This can be seen as TUSD or total number of USDT. It must be noted that the total number of USDT in circulation should be aligned with the total amount of USD available in the Tether Limited’s bank account. This is the same account which is used for transactions with users where the currency rate is flat.
Tether Limited will publish its bank account on its website to prove that the amount it has in its bank account corresponds with the USDT being circulated. This is because the numbers are audited quite commonly.
How to use USDT?
Using USDT is quite similar to other crytocurrencies. Tether does not come with any transaction fees although you might be imposed with a fee when you use wallets or exchange from third-party service providers. You can use USDT to buy Bitcoin or other cryptocurrencies in Tether exchanges like Bitrex and Binance and you can then transfer it other exchanges as long as the platform is Omin Layer enabled.