Tether is an incredibly versatile asset, perhaps the most versatile in the crypto world. Unlike many other currencies, which serve a single purpose with a limited degree of adaptability and room for expansion, Tether introduced many different varieties of essentially the same stablecoin over the years.
By now, Tether is more of a family of assets rather than a single coin, as it was in 2014 when it was first implemented. Tether Omni (EURT) is a specific type of Tether that uses one of the earliest forms of this token, created for the Bitcoin blockchain, in addition to being an unusual euro stablecoin.
It’s a curious asset, and there’s a lot to cover here.
Tether is a group of assets, created by the eponymous fintech company in 2014. The most well-known and widespread type of Tether is Tether USDT — a stablecoin pegged to the value of the US dollar. Tether and USDT are commonly used as interchangeable terms, but they aren’t really the same.
It was created in 2014, and the Tether family of assets is by now one of the biggest crypto assets in the world. USDT is the third-biggest cryptocurrency by market capitalization. Other varieties of Tether are much less notable, including the Chinese yuan, euro, Mexican peso, and the XAUT (Silver Index stablecoin).
These are all stablecoins, pegged to the value of various world currencies, and even indexes. It is, in fact, the foremost family of stablecoins. They represent an exceptional advantage. That advantage is the ability to store value in what is functionally crypto without the intense volatility.
Tether EURT is a less-known type of Tether, pegged to the value of the euro instead of the dollar. The difference between the two boils down to the difference between the euro and the dollar themselves. These are two different assets issued by the same company. That’s where the relationship ends.
It’s still a stablecoin, and there’s never been a big enough dip in its value to go below 0.99 EUR. It’s incredibly stable, which is why it’s called stablecoin in the first place. It isn’t any less stable compared to its cousin the USDT, although it has comparably fewer applications because of its lower popularity.
It’s not as widely available as USDT. EURT is only present in a few select wallets, especially wallets that focus on stablecoins. The other detail to consider is the standard behind Tether EURT because even this is not a single asset. There are many different varieties for various blockchains, and this choice determines the availability of a token, as well.
Tether EURT standards
A standard of a token is a set of rules and principles by which that token is governed on the blockchain. In order for a token to be completely compatible with the network, its standard should be in accordance with the blockchain’s own standard. This compatibility is very important.
Bitcoin, for instance, isn’t the only currency that can be used on its blockchain in the way BTC itself is used. For instance, it’s not the only coin you can utilize to pay transaction fees or to fuel your dApps. Any coin that shares Bitcoin’s established standard will have the same capability.
EURT is admittedly pretty insignificant compared to USDT. It doesn’t, though, diminish its benefits and utility, but its scarcity limits its uses. Consequently, there isn’t as much variety among the EURT standards as there is among USDT standards. It’s not detrimental if the token’s tradeable volume is pretty low, anyway.
However, there are only two known Tether EURT standards:
- Omni (Bitcoin)
- ERC20 (Ethereum).
Omni is the bigger of the two, which isn’t surprising. EURT focuses heavily on Bitcoin, as the single biggest crypto network. Although Ethereum is superior in many ways to the unmodified Bitcoin blockchain, the latter can be brought up to speed by modifications such as Omni. It’s not really a standard, but it’s fully compatible with Bitcoin’s own native BRC20.
The Omni Layer is a modification created to enhance the regular Bitcoin experience. It was created in 2012, and its original goal was to simplify the creation of altcoins on the basis of Bitcoin. It did it via a unique system of colored coins. The coins could be made custom and then distributed across the blockchain at the discretion of their creators.
As one of the largest BTC modifications, it was also perfectly positioned to introduce another feature — the creation of smart contracts on the basis of Bitcoin. It was announced and implemented after ETH proved to be a revolutionary solution that raised crypto scalability to previously unheard heights.
This layer is completely compatible with the Bitcoin blockchain. Its whole purpose is to provide additional features and not supplant the original network in any way. That’s what layers are, in the end. Omni is incredibly valuable, even though its benefits might be pretty dated by now.
Tether was originally created on Omni, and its underlying standard was this — Omni. It’s completely compatible with Bitcoin’s native standard, the BRC20. It was just too convenient to use this coin-creation tool instead of creating the altcoins the usual way. However, it was back when Tether released USDT.
EURT was created later, but Tether still decided to use Omni instead of the regular BRC20. It’s much simpler even after all these years. It doesn’t have any functional differences because EURT can still be spent on the Bitcoin blockchain even beyond the boundaries of the Omni Layer, so to speak.
It doesn’t have any particularly unique applications on Omni, besides the same processing and powering features that any other point on the BTC network can use Tether for.