Tether Being Supported by Ethereum Network
Tether has removed the previously used Omni protocol and launched Ethereum network, bringing lower fees and faster confirmations to the system.
In the cryptocurrency area Tethers are considered to be very controversial product. These tokens are backed by traditional fiat currencies, such as the United States Dollar or the Euro. As they offer a method of implementing USD pairs without having to use dollars, many exchanges have adopted tethers for that purpose.
The old tether system used the Omni protocol, a system that allows for custom smart contracts using the Bitcoin network’s security. The switch to Ethereum is exciting, as they’ve already migrated USDT and EURT to the new network.
According to company’s announcement, the move has a purpose to put lower fees and faster confirmations, which supports Ethereum network. New contracts has been launched by Tether and it continues the process of transferring value across the chains. For a full roll out onto Ethereum it will take a time.
CONCERNS ABOUT THE TOKEN
Tether has come under fire as of late for some questionable actions. There are many users, who wait for a tether reserves audit by a third party. The reserves are bank accounts that Tether claims have a matching number of dollars as the number of USDT in circulation. It caused more surprise when came out that tether has a clause in their ToS stating they have no obligation redeem the tethers at face value.
The custom users can’t purchase Tethers, it’s only for institutional investors. Over $1.5 trillion tokens have been produced already and it is currently being used in circulation by exchanges and individuals worldwide.