Tether is the most popular stablecoin out there, a combinatory product that acts as any other cryptocurrency except for its pegged value. USDT in particular is always equal to the value of the American dollar, which presents a plethora of opportunities. For this reason, this token became very popular very fast.
Its other important detail is its availability. It’s been ported to a number of blockchains, including Bitcoin, Ethereum, TRON, Binance Smart Chain, and others. It’s perfectly compatible with these systems, meaning that you can store and use USDT on these networks as a legitimate tender.
Solana is another promising network where Tether is available but in a slightly different way.
A blockchain can support a number of tokens and coins, meaning that a specific cryptocurrency can be used as fuel in the projects built on such systems. A currency should first be compatible with the system, which is what standards are for. The Bitcoin network, for instance, uses the BRC20 standard.
Bitcoin and other currencies that can be freely moved through this ecosystem adhere to this standard. This ensures their compatibility and rights that other currencies just don’t have on this blockchain. Other blockchains have standards of their own, such as ERC20 for Ethereum.
Solana has a different story. It’s a curious blockchain with numerous benefits. Tether is also available on this blockchain, although it doesn’t really share the local standard. It does with many other networks where it’s accepted, such as Bitcoin, Ethereum, and Tron, but not on Solana. Why is that?
Solana is a noteworthy network — not the most popular place in the crypto world, but it’s still a major player. It’s a blockchain that works on smart contracts, and in particular, promotes the interoperability and compatibility between networks. It has many features that allow for a seamless transition between other blockchains and itself.
On this basis, the owners of Tether don’t really need to create a variety of this token with Solana compatibility. They did it with other blockchains because it meant bringing this currency into beneficial ecosystems as an equal partner. That’s why they released varieties like Tether ERC20 and Tether BEP20.
Solana is obviously not just a place where you can store SOL, USDT, and other tokens. It’s an ecosystem created with some idea in mind. It’s a relatively recent project, as well as released in 2020 alongside its token SOL. It became mildly popular and is considered one of the big names in the crypto world now.
It uses smart contracts, like many other more recent blockchains. These networks follow the example set by Ethereum, that being a high scalability of a system based on smart contracts, which can be automated, and an increase in transaction volumes to new heights. It’s practically a requirement for new crypto projects now.
Solana, though, was designed using several additional mechanisms and protocols that ensured an even higher degree of scalability. It basically means you can develop your business much faster and with more efficiency than some of the other blockchains. There are other benefits besides just scalability, including:
- Low transaction fees;
- Fast processing;
- High throughput volumes;
- Smart contracts use;
- Energy efficiency.
All in all, the network was created to be efficient. It does its job right, which is why it’s an alluring place for developers and consumers. There are tons of Solana-based solutions, projects, apps, and exchanges right now. You can use USDT to utilize all of them freely. That’s incredibly convenient for people who distrust regular crypto.
Compatibility with USDT
Solana has its own token standard, the SPL. The cryptocurrencies that were built on or converted to this blockchain share this structure. It’s not particularly superior to other standards in terms of interoperability or compatibility. It’s the in-built mechanisms inside the blockchain that ensure this inclusion.
There are sophisticated bridge mechanisms between Solana and some high-profile blockchains, like Ethereum. Ethereum is particularly close with Solana, not just on account of their shared fascination for smart contracts. Ethereum’s ERC20 standard is basically just as accepted on this blockchain as SPL.
So, even though there isn’t such a thing as Tether SOL or Tether SPL, USDT is fully integrated into the system and can be used as legal tender here. It can be used to pay for transaction fees, to purchase products, or overall use the SOL-built solutions. Tether ERC20 works best for this purpose, anyhow.
Why use USDT on Solana
There are plenty of reasons why you’d want to use Solana in the first place, including many of the benefits described above. It is a worthwhile blockchain with many unique strengths. It’s very helpful for developers, but it’s also pleasant to stay here as a regular user, from a technical point of view.
The reason why a lot of people prefer to use USDT is because of its stability. The currency isn’t nearly as volatile as many of the other cryptocurrencies, like Bitcoin or Ethereum. It means that any savings kept in Tether aren’t in any more risk than dollar itself, which is immensely better than keeping your money in Bitcoin.
The only problem is that Tether isn’t as widely accepted as Bitcoin, which is the primary payment instrument on many decentralized solutions in the web. Fortunately, USDT is getting more and more widespread, and Solana is only one of the many recently created blockchains that support Tether.