Crypto Academy Week 6 - Homework Post for @Yohan2on

Hello everyone welcome to week 6 steemit crypto academy task, our professor @yohan2on wrote everything about stable coins so if you have not seen his article you can click here

The homework task he told us to write was to explain any of this stable coin which are Tether(usdt), Dai or SBD but I will be explaining Tether first of all let me explain what stable coin is so let's begin.

What are Stable Coins?

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This are coins that their value are fixed which means they are pegged to assets like other cryptocurrency, Fiat currency and even assets like Gold.

Tether (Usdt)

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Tether is a stable coin that are pegged to Fiat currencies which means it's crypto coins are backed with this Fiat currencies like dollar, Euro and even Japanese yen.

The basic function of tether is to provide liquidity and also a hedge for market volatility. Which means tether experience no loss of value and this also makes stable coins less risky than other cryptocurrency like Bitcoin and ethereum.

The History of Tether.

Tether is a stable coin that was founded in 2014 by Brock Pierce, the company was first in isle of man but was later moved to British Virgin islands you can also find the company in Hong Kong, China. Tether was once called Real coin before the name was changed to Tether that we know today.

What Block Chain Does Tether Use?

It uses the SLP, Simple Ledger Protocol (SLP) is a block chain used by the tether as a technical means to launch the usdt stable coin on the Bitcoin cash blockchain.

Why is Tether so Popular?

It is massive part of the cryptocurrency block chain, it has a market cap that is over $15 billion. The US dollar pegged crypto stable coin has been top 3 cryptocurrency since May 2020, the reason why it is huge is because it feeds the rest of the crypto market.

How does Tether keep it's Value?

Since they are secured or 'tethered' to real-world monetary forms on a 1-to-1 premise and sponsored by our savings, Usdt monetary standards are not cash, but are digital tokens organized to work on blockchains. Usdt tokens hold their esteem at 1:1 to the fundamental resources like united State dollar.

Conclusion

I believe that without the USDT presence in the cryptocurrency ecosystem the Bitcoin can't be were it is today that is why many cryptocurrency haters are going after Tether but they have failed any way I hope I explain it very well and I want to thank @steemitblog and @yohan2on because through this process of doing this homework it has pushed me into doing researches.