Key Insights:
To help recover your USDT stablecoins from any blockchain, Tether has launched a blockchain recovery tool for USDT that is specifically meant for those blockchains that become inactive or non-responsive. The tool might have been inspired by events like the collapse of Terra and its blockchain.
Such methods of recovery help boost the confidence in Web3 which ultimately leads to its wider adoption.
Being the world's largest blockchain with a $100 billion market cap, Tether has brought a unique solution that could drive its adoption even higher.
As of March 2024, more than 15 major blockchains have USDT on their blockchain.
#NOTE: Tether's stablecoin USDT is independent of all blockchains. However, USDT only uses them as a secure transport layer.
Tether has launched a unique tool that can recover USDT from any failed or unresponsive blockchain. The tool has been designed keeping in mind the balance between ease of use and a powerful recovery mechanism.
To be eligible to use the tool, the user just has to show up that they control the address on the failed blockchain which holds their USDT. Also, proof is needed for another address where they wish to deposit the USDT.
On another note, Tether has crossed a $100 billion market cap. This market cap is even higher than the last bull run where its market cap went close to $100 billion but could not cross it.
The blockchain recovery tool has been designed to be used for everyone irrespective of their programming language. The recovery tool can be used from both the command line interface(CLI) as well as through a web portal (for non-programmers).
The user would be first asked to cryptographically sign a request allowing Tether to access the USDT on the lost chain and subsequently deposit it into the new address on another blockchain. The request can be also signed from wallets such as Ledger, Trezor, or Metamask allowing everyone equal access to their lost funds.
For CLI users, they are allowed to directly paste their private key to sign the request.
What's better is that users get assistance from Tether which does most of the job in recovering lost cryptocurrencies.
Several blockchains with a large asset base on them have failed in the past.
Terra is one such example that failed due to the crash of its native token and was subsequently shut down on May 09, 2022. By the time, it was reopened, almost all assets on the blockchain, cryptocurrencies, and stablecoins lost more than 95% of their value.
Now with the launch of the blockchain recovery tool, Tether might be able to rescue the users of USDT from such a total wipeout.
Another situation where it could be highly beneficial is during the outages of Solana. Although these outages are temporary, yet, they are a serious risk for emergency fund transfers.
However, Tether has not mentioned how much time would it take to execute the USDT recovery process.
Such tools boost the confidence of ordinary users who don't understand much about technical aspects and would like to be assured that their funds are secure. This could inevitably drive higher adoption for both USDT and blockchain technology.
With crypto markets achieving all-time highs, the need for securing funds from all types of threats becomes important.
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