Tether has been working tirelessly in order to transform the legacy financial system by employing a more up-to-date approach to money transfers. To enable faster transactions over the blockchain network, the platform has been moved from Omni Protocol to the Ethereum network. This guarantees customers the benefits of blockchain technology without the complexity and inherent volatility associated with digital currency.
Tether has had its share of controversy in the cryptocurrency space for some time now. It’s a cryptocurrency that’s backed by traditional fiat currency. It has been adopted by a number of exchanges because it allows implementation of USD pairs without necessarily using the US dollars, so there are no regulations imposed.
Before it switched to the Ethereum Network, Tether used the Omni protocol, which allows custom contracts, while utilizing the security of the Bitcoin network. The company announced that the move was aimed at reducing the slow confirmations and extremely high fees that are experienced with the Bitcoin network. The company claims that the confirmation times might reduce to 15-30 seconds, facilitating more efficient exchange arbitrage.
With the new contracts already launched, Tether is transferring value across the two chains, something that might take time before a full roll out is achieved. However, the company claims that some partner exchanges are already in the process of working the integration.
Tether in Trouble Over Tokens
There have been some serious concerns about Tether because of its actions. A good number of people are still looking forward to an independent audit possibly by a third party on tether reserves – bank accounts that the company claims have the same financial reserves as the number of its tokens (USDT) that are currently circulating.
Right now, the public cannot purchase tether. Only institutional investors have the power to acquire it. So far, more than $1.5 billion has been reportedly produced by the company, which is currently in circulations by some institutions and exchanges globally.
What do you think about the move to switch Tether from the Omni Protocol to the Ethereum network? Was it a smart move by the company? Let us hear what you have to say about this whole issue in the comments below.