Crypto Academy Week 6 Homework Post for @yohan2on | Stable coins

faisee (60)Beginner[4]in SteemitCryptoAcademy • 3 years ago (edited)

Hello steemit

How are you all? I hope you all are good. This is my 6th week in steemit crypto academy and with every passing week I’m getting good knowledge from it so thanks to @steemitblog for wonderful initiative. So in this week I got lecture of @yohan2on and fully understood it, now it is urging me to do his homework to show my understanding so let’s start it my mentioning his homework.

Homework task: Write about any one of the following stable coins;
Tether(USDT)
Steem backed dollar(SBD)
DAI

Source
Today I’m going to write about Tether(USDT) among other options. It was launched with different name “Realcoin” in 2014. I was renamed into Tether from Realcoin to avoid its association with other coins. Basically it is a stable currency, stable currency means its price graph doesn’t change much that’s why its called stable currency.

Like steemit, It is built on the blockchain. Tether is supported by Dollar, Euro due to its equivalent amount. Its symbol is USDT as we can see in brackets and is traded for 1 dollar. The main purpose of creating Tether(USDT) was to protect traders and investors from the digital currencies dangers. Tether is transparent currency because it publish everything on their website like account balance to show their balance in their bank account.

Legality

Some of the countries where Tether is illegal:
• Cuba
• North Korea
• Iran
• Pakistan
• Syria

U.S. persons are also restricted from using the Tether platform unless they are Eligible Contract Participants (“ECP”) pursuant to U.S. law.
Source

Uses

Some of the uses of Tether currency includes:
• Industry Supporters
It supports industry like omni, ftx, epay etc
• Price Stability
• Trading platforms:
• Blockchain companies:
• Traders and individuals:

Advantages

Some of the advantages of using tether is that it is a stable coin equals to 1 dollar which doesn’t change. This stability can be obtained by converting monetary currencies into a digital currency. Another advantage of using tether coin is its transparency which reduces the chances of any scam therefore we can say that Tether is completely safe because it follows all regulations by the government where it is legal. Another advantage of Tether is that its value is maintained by the US dollar.

Disadvantages

In terms of my research of Tether, I found very less disadvantages compared to other cryptocurrencies like one the which I think is main one, It is impossible for a person to do mining of tether because of its link with the value of US dollar and company's goals which doesn’t include mining. Another disadvantage includes the audits, the company’s last audit was in 2017 and the company haven’t mentioned about the new audit or anything on their website. Another disadvantage is that it heavily relies on the banks.