Tether creates cryptocurrencies whose price are tethered to that of FIAT currencies. Currently supports USD and EUR and will soon add JPY. It therefore acts a safe haven for traders on crypto exchanges. Based on the Omni protocol which is built on top of the Bitcoin Blockchain. Every USD/EUR/JPY is backed with real currency in a reserve.
Consensus Method PoW
Current Uses Trading, storing FIAT on the blockchain.
- Questions about how this is backed. If all users were to withdraw simultaneously the network would collapse (would love someone to correct me on this)
- Useful as a safe haven when trading when entering a bear market