Stable coins are in great demand today among Ukrainian citizens who are thinking about investing in the cryptocurrency industry. The most popular investment option is Tether USDT, whose exchange rate is pegged to the US dollar. Low volatility, high stability of the token allows you to invest in a fairly reliable virtual asset.
Usually, withdraw usdt on the card allows the citizens of our country not only to return the investment, but also to get a good income. We propose to dwell in more detail on this stablecoin, the principle of its operation.
The principle of operation of cryptocurrency
Initially, Tezer worked on the basis of a special Omni Layer protocol, which acted as an add-on to the bitcoin blockchain technology. After the Ethereum platform became very popular, the developers decided to integrate part of the coin emission into this technology. This led to the fact that in 2018 the developer introduced the standard cryptocurrency ERC-20.
This transition allowed people to access the following benefits:
1. Opportunities to use the token to work with smart contracts. Until 2018, cryptocurrency holders could only send and receive coins.
2. Work with decentralized applications. The use of such programs allows you to perform a large number of useful additional options.
After the successful implementation of the Ether platform, the developers decided to continue using other blockchains as well. As a result, in 2019-2020, coins were introduced on other distributed networks, for example, Tron, Binance Chain (Smart), as well as EOS, Solana, OMG Network, Algorand, and other variations.
It is important to understand that USDT uses separate cryptocurrency wallets on different blockchains. When users decide to buy or sell Tether on a cryptocurrency exchange, they are able to choose on which type of blockchain the transaction will be carried out.
Tether USDT Collateral
There are currently over 64 trillion tokens in circulation. If we take into account the provision of cryptocurrencies as a percentage, then a little more than 75% retained their value thanks to cash, their various equivalents. In addition, a stablecoin is represented by the following types of collateral:
● loans – about 15%;
● precious metals, funds and bonds – 9.96%;
● other types of assets – 1.64%.
This once again confirms the stability and reliability of this cryptocurrency.
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