What is the difference between Tether and ERC20 tokens?

3 answers

• Dec 16, 2021 · 3 years ago
  Tether (USDT) is a stablecoin that is pegged to the value of the US dollar, while ERC20 tokens are a type of digital asset built on the Ethereum blockchain. Tether aims to maintain a 1:1 ratio with the US dollar, providing stability in the volatile crypto market. ERC20 tokens, on the other hand, can represent various assets and have different functionalities depending on their design and purpose. They can be used for fundraising, voting, or as a medium of exchange within decentralized applications (dApps).
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• Dec 16, 2021 · 3 years ago
  Tether is centralized and operates under the control of Tether Limited, a company that issues and manages the supply of USDT. ERC20 tokens, on the other hand, are decentralized and can be created and managed by anyone who follows the ERC20 token standard. This decentralization allows for greater transparency and eliminates the need for a central authority to control the token supply.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we believe that both Tether and ERC20 tokens have their own unique advantages and use cases. Tether provides stability and acts as a bridge between traditional finance and the crypto world, while ERC20 tokens enable the creation of decentralized applications and facilitate new forms of economic interaction. It's important for users to understand the differences between these two types of tokens and choose the one that best suits their needs and goals.
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