Hard Peg

What is Hard Peg?

A hard peg allows for only a limited amount of movement in regard to the pegged currency, resulting in what is known as a band. One cryptocurrency that is linked to the US dollar is Tether.

Hard pegs have the benefit of being clear and uncomplicated. The known and fixed supply of cryptocurrencies. This might make them simpler to put into practice without compromising the transactions' confidentiality.

If people wish to utilize their shares as true currency rather than just a commodity, it may be difficult to maintain a strict peg. For instance, if too many individuals purchase the token, there won't be enough money on hand to back all Tethers that are created.