Blockchain Startup Algorand Adds Support For Stablecoin Tether

Announcements, Blockchain, News | February 10, 2020 By:

Blockchain startup Algorand has announced that Tether, the largest stablecoin by market capitalization, is now live on its next generation pure proof of stake blockchain platform.

Founded by MIT professor and Turing Award winner Silvio Micali, Algorand is a scalable and decentralized cryptocurrency and transactions platform based on Byzantine Agreement (BA) protocol. It addresses blockchain’s scaling challenges through rapid and efficient user consensus, enabling even the smallest transactions, regardless of volume or number of users. Performance on the Algorand platform claims to exceed 1000 transactions per second (TPS) with a latency of less than 5 seconds, putting it on par with the throughput of major global payment networks without compromising security or decentralization.

Algorand said in a press release that Tether is the first stablecoin to leverage the innovation released in Algorand 2.0 to offer traders a fast, stable and secure network for moving money worldwide.

“In particular, Tether is using one of the key features of the Algorand 2.0 upgrade, the Algorand Standard Asset (ASA) technology, which makes it possible for the tokenization and issuance of any type of asset on the Algorand blockchain,” Algorand said. “Tether’s implementation on Algorand will benefit from block confirmation in under four seconds and transaction fees that are a fraction of a percent, unlocking the opportunity for micropayments on blockchain.”

Paolo Ardoino, CTO at Tether, said that that the partnership leverages the speed and security of Algorand’s protocol to give traders fast settlement and reduced counterparty risk in their fiat to digital asset transactions.

“Tether and Algorand both share a desire to keep building next-generation financial products and we feel our growing customer base will appreciate and benefit greatly from this collaboration,” Ardoino said.

Steve Kokinos, CEO of Algorand, said that by joining the Algorand ecosystem, Tether will benefit from technology that provides immediate transaction finality and security to support a strong and more stable defi economy.

“Tether’s issuance of their asset on Algorand will be a gamechanger for global defi participants as it is one of the fastest and safest ways to move money around the world,” Kokinos said.