How Does Tether (USDT) Work?

Tether, like all cryptocurrencies, runs on blockchain technology. It operates using the Omni Layer protocol. All transactions are recorded on the Tether blockchain, and stored in Tether's database.

It works much like Bitcoin. Anyone can make transactions with the cryptocurrency using it to pay for goods or services in which they are accepted.

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History and Controversies of Tether (USDT)

Tether first launched in 2014 mainly as a way to provide users with an alternative payment method. It was originally available on the Bitcoin blockchain, but it was later moved onto the Omni Layer protocol which is built on top of Bitcoin's blockchain.

One controversy surrounding Tether (USDT) is that it has been used by criminals to launder money.

There are accusations that USDT has been used for this purpose because it is so easy to exchange Tether units with US dollars, making it difficult to track whether Tethers have actually been exchanged for fiat currencies.

Another controversy involves Bitfinex, one of the exchanges where Tether (USDT) is traded.

Many suspect that Tether (USDT) has been used to manipulate the price of Bitcoin on Bitfinex. Allegations like this are not uncommon in the cryptocurrency world, but Tether's lack of transparency makes it hard for anyone to verify these claims.

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