Crypto Academy Week 6 Homework Task Article for Professor @yohan2on | Topic: Stable Coins | Tether (USDT)

Another week in the Academy has been started and another great and informative topics to look for is here and worthy to read.

This will be my homework tasks article for Prof. @yohan2on for this week 6 that talking about Stable coins. His tasks will be:

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

There were lots of Cryptocurrencies nowadays and we must all consider holding some of them and some of them were Stable Coins. What I am going to share here is one of the Stable Coin named Tether (USDT).

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What is Tether (USDT)?

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Tether (USDT)

The very most common new breed of cryptocurrency that belongs to Stable Coin is Tether (USDT) which is manufactured by a Company called Tether Limited way back in 2014. The very concept of this cryptocurrency is to pegged like the value of a United States Dollar (USD). Tether (USDT) doesn't have it's own blockchain as it is built under the Bitcoin Blockchain via Omni Layer Protocol this means that all transactions can be seen on Bitcoin Blockchain using the tool provided by Omniexplorer.info.

As to the time of its released, Tether has been doing great and there were different blockchain that also releases its Tether pegged token just like Ethereum, Tron, and other Blockchain which means we can use Tether in different platforms and services who supports it. The main function of Tether is to act like the usual fiat currency in buying some Bitcoins and Altcoins in different Cryptocurrency Exchanges.

Advantages of Tether (USDT)

Every cryptocurrency has different advantages and here are Tether (USDT)'s advantages.

1. Price Stability
As to its type of cryptocurrency itself Stable Coin, Tether's price will not change too much either greater or lower than the US Dollar currency. It will be as much as the same as the US Dollar even though Bitcoin will go up or down in prices.
2. Lower Transaction Fee
Unlike other Cryptocurrencies, Tether has a lower transaction fee which makes it in demand. Users will use Tether for it has the lowest transaction fee in all its services.
3. Highly Integrable Cryptocurrency
Highly integrable means, it is easy to integrate or applied by exchanges to provide a trading pair.
4. Easily use by non Technical user.
This probably means that it can be used even you don't have enough knowledge of Cryptocurrency.
5. No significant price volatility
Tether will ensure that the price will like the US Dollar.

Disadvantages of Tether (USDT)

Now, let us talk about some of the disadvantages of Tether (USDT).

1. Centralized and trust dependent
While Tether claims to be decentralized, Tether Limited and its currency reserves are completely centralized.
2. Dependent on good financial relationships
This means that Tether is heavily reliant on the banks that they work with as well as legal institutions.
3. Unclear Audits
One issue Tether has is on their auditing services as the company promises public audit but never mentioned it on their latest released.

Conclusion

There are different types of cryptocurrency nowadays that we should also need to consider, with its use cases and functionalities. A stable coin is the new breed of cryptocurrency that we must have to look for and to its commonly known cryptocurrency Tether (USDT) in which almost all exchanges integrated it to its trading pair. Tether is for me a highly recommend when buying Bitcoins and Altcoins as to its volatility. In dealing with different cryptocurrencies, we must always on our m consist of all information about them for our benefits. Do your own research definitely is the key for a better understanding.

This would be my homework task article to Prof. @yohan2on for the 6th Week and hopefully, everything is fine and be accepted. I've appreciate all the efforts and information I've got from the lesson and I'm looking forward to the next lesson next week.

Thank you also to all the Steem Team who initiated this new project, to @steemitblog, @steemcurator01, @steemcurator02 and to all curators who supported this project.

That would be all, thank you and God Bless!!!

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Your Crypto Steemit Academy Student;