Confusion around Tether

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Avatar for Telesfor
2 years ago

I have noticed that many people are confused about the Tether USDt. They exchange BCH for USDt with the bitcoin.com wallet and later don't know how to use it. To explain it, you have to know that there are different USDt tokens that are not compatible with each other. This means that they have the same name but are technically different. You cannot add a Tether version to the wallet of another Tether version. They also have different addresses.

The following tether versions are available:

USDt ERC-20

The best known Tether token is the ERC-20 token, which was created on the Ethereum blockchain. This token is the most widely used and most exchanges support it. This address begins with 0x and has this form, for example:

0x991B63838C15860173CAD23F5DbfC2b1b935a515

To send this form of tether, you must own ETH and have it in the same wallet as USDt. This is necessary because the token is moved on the Ethereum blockchain and the transaction fees (gas fees) are paid with ETH. A big disadvantage of this USDt variant are the high gas fees that you have to pay. They are more than $5, sometimes more than $10 per transaction.

USDt SLP

This version of Tether was created in Bitcoin Cash blockchain and is used in the Bitcoin.com wallet. This version is rarely supported in exchanges. You can exchange it for other coins in sideshift.ai. This tether version starts with simpleledger: and looks like this, for example:

simpleledger:qqr0mdy88ymzqw3r93sfwnavg303z22yqgw33uxvkp

To send this form of tether, you must own BCH and have it in the same wallet as USDt. En great advantage of this version is the very low transaction fees for sending. As this token is moved on the Bitcoin Cash blockchain, Bitcoin Cash fees are paid, which are known to cost less than a cent.

USDt Liquid

Liquid is a sidechain developed by the Blockstream Corporation. The main disadvantage is that Liquid is centralised and under the control of Blockstream. Tether liquid address, for example, has this form:

VJL9WKJAsMPUhuLETH9Yc7n3JsNgQCg1e3tszLSWf8xc1ghQUJUX14TDe3b7xrUfL1UQu5k84qZ4Zp6H

One advantage of Liquid is low transaction fees. However, they are paid to a wallet that is under Blockstream's control.

USDt OMNI

Tether OMNI is a token used on the Bitcoin blockchain via the Omni Layer Protocol. It is accepted at many exchanges and has the same form as the BItcoin address. For example:

14oDXo7DECQ3kF6mVoHiGAC4yRkZa4LtKG

or:

3GyeFJmQynJWd8DeACm4cdEnZcckAtrfcN

A major disadvantage of this version are the transaction fees. When BTC transaction fees rise, which is often the case, OMNI fees also rise and can be more than $10 per transaction.

USDt TRON

It is a token in the TRON network. It is supported by many exchanges and has the following address, for example:

TR7NHqjeKQxGTCi8q8ZY4pL8otSzgjLj6t

It is now more commonly used than ERC-20 tether because the tron fees are reactively low.

USDt EOS

Is a token in the EOS network and has the following address, for example:

EOS6vRTFRe5WY2zKp2CGZaqFyM8oUZ6wKwRZpdnKY5hHyNRNhjA9s

There are no gas fees in the EOS network. However, there are other things to consider when submitting an EOS transaction. One needs CPU, network bandwidth and RAM, which must be purchased.

USDt ALGO (Algorand)

This is a token in Argorand's network. It is real new and is still supported at few exchanges. The address has the following form, for example:

MBUTXAIOCTMKMZVKVCOWMLU3MHOOFT4AXAGNGMWVSDMFNUYKQS6IRQIYTE

or

UIUHZ2IDTBO7JOZHKZVAQVTTKAZJFVZ66FUCDDFZCTJPWEWRHE7XIRCACY

Advantage of ALGO are low transaction fees.

USDt SOL (Solana)

This is a token in the Solana network. This is the newest token, I think. The advantage of Solana are very fast and extremely low transaction fees. The address has the following form, for example:

DTPQeaXJcWwoCMkRWT1ikGoccbbGFUdYncNQ9UMajmSn

or:

BTSbSt1MpDi4GQkyEy8mtEdxVrgX2TAvSKgJsXRvBoi7

Here you can find all Tether Token versions and Ballances

As I wrote at the beginning, all these tether versions are incompatible with each other. You cannot send USDt SLP to USDt ERC-20 address. If you have exchanged BCH to USDt in the bitcoin.com wallet, it is best to exchange it back in the bitcoin.com wallet. However, you must keep in mind that the wallet you hold your USDt in must contain a small amount of BCH because the SLP transaction takes place on the Bitcoin Cash network and you have to pay a Bitcoin Cash transactions fee.

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2 years ago

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