Tether or USDT is a type of stable coin or stable-value cryptocurrency which aims to reflect the current value of the U.S. dollar. Its purpose is to equate the circulating amount of actual dollars to cryptocurrency tokens.
Its first name in 2014 was Realcoin, and it was created with Bitcoin as the base model. However, it was then upgraded to cater to other blockchain systems available market. The main focus of Tether is to provide stability while still gaining the benefits of the decentralized nature of cryptocurrency.
What makes Tether different from other tokens is that it is backed up by real-world dollars, since when new USDT tokens are created, the same number of funds are allocated to the platform’s reserves. Nowadays, people use Tether as a haven during volatile changes in the market, as the value remains the same regardless of changes in the crypto world.
A Tether is made to reflect the value of a dollar. This allows it to be a crowd favorite in terms of stability as it minimizes losses in times of crypto crisis. Today, Tether continues to be a reliable method of storing cryptocurrency without worries and hassle.