A single reason to be skeptic can bring down a hundred reasons to believe in an idea. Enterprise Blockchain Development Services, growing as a large multi-billion dollar industry, has a similar connection with the likes of Tether, apparently a black sheep in the cryptocurrency industry. Tether is the second most popular digital currency. The reason behind its popularity is its promise of “stability” in the cryptocoin market, which is also the beginning of the controversies surrounding it.
Tether Blockchain is based on Omni Layer mechanism. The blockchain platform uses the Bitcoin blockchain to create new asset on its own blockchain. Omni Layer is a protocol developed to handle the complexities of financial functionalities in cryptocurrencies. Controversies surrounding cryptos like Tether has a strong impact on the perception of the technology behind it. Thus, Enterprise Blockchain Development Service and the overall industry falls under radar of skepticism.
The founders of Tether Blockchain has been claiming that this currency is not subjected to fluctuations in the market. The primary USP of the coin was its “Stability” aspect. As claimed, the value of this currency is meant to mirror the value of US Dollars, which implicates, it can be used to replace dollars while trading on exchanges. The mechanism of Tether blockchain, supposedly, converts legal tenders like Euro, Yen, Dollars, into digital currencies. Tether founder Ludovicus van der Velde strongly claims that Tether is backed by enough USD reserves, exceeding the total of the currency distributed in the market.
The controversy is in the fact that investors are not buying van der Velde’s claims. Also, certain credible market research alleged that Tether has played a strong role to hike the price of Bitcoin, the primary cryptocurrency. Such a scenario brings a strong skepticism in the adoption of blockchain and its utility. This aspect is also the reason blockchain technology should align as a technical utility rather than the basis of cryptocurrencies. It is necessary for the industry to boost up a massive drive to popularize enterprise blockchain development services in enterprises and industry sectors, parting away from its identity with digital money.
G20 Summit 2018, established cryptocurrencies as “assets” rather than money or currency. Being claimed as an asset, they become something which can be traded for money, but not money itself. This is the appropriate way to deal with the conundrum of perception of cryptos, projecting them rather than technologies that solve real-life problems and practical issues in the internet ecosystem. Apart from regulating the digital currency market, strengthening blockchain development service as a new revolution in business and industries will reduce skepticisms on the technology. This will boost the adoption of blockchain in the business landscape and industries. As blockchain will transform as a dominant technology, together with larger regulations and transparency in the cryptocurrency landscape, the market, in general, will improve massively.
Tether became controversial because of its claims and its role in Bitfinex to buy the largest cryptocurrency. There is a subtle connection between such contentions and adoption of the technology behind these currencies. Thus, Tether has a subtle impact in popularity of Blockchain technology, the underlying mechanism of cryptocurrencies. Blockchain Development Services and blockchain applications in use cases other than currencies is helping to stabilize the industry.