Denial is neither a river in Africa nor an option for TETHER, especially when it comes to  TETHER being asked to provide 100% Permissioned Audit Transparency and 100% Q-Day Protection to regulators, their whale investors and their 'retail' users (us) of their collateral backed USDT Financial Service.

TETHER'S Self Attestation of collateralization levels behind USDT is 'NO STARTER'  Option IMO.  Hence I do not use USDT (or any stablecoin for that matter)

There is no other way to preserve TETHER's medium term viability as a useful Financial Service but to do a forklift IT upgrade on two fronts:

1. Transparent Immutable Audits that are permissions

2. 100% Q-Day Protection from future Decryption Attacks

Big Whale Investors and the Regulators are now demanding it of TETHER, so TETHER's Management Suite and CIO need to get going.

(All Commercial and Open Source Financial Services, BTC ETH, everyone will need to get going.)

More importantly, we as little crypto investors need to be demanding both capabilities from TETHER too.

So hit the social media sites and get talking about this, everywhere. (Prairie Fires are hard to stamp out/censor on social media these days)

As an aside hit the 'Silver Moment post comment  to learn more about TETHER.

For that matter its not an option for ANY Financial Service employing cryptocurrency token technology to back the collateral positions, private or Open Source Community backed(#Bitcoin et al)

In reading another gem from Quoth the Raven “QTR” about Tether's CURRENT AUDIT DILEMMA,

Imo Tether’s current opaque self-attestation claims position: “we have never refused a settlement”, 

does not work for regulators and ALL investors when there is a significant run on their USDT Stablecoin coupled with a deflation event in BTC’s price, or there is one or more parallel runs triggered by deflation of value in any of their different type collateral positions individually or collectively, for that matter.

The TETHER near future solution (if they actually take action or just 'do nothing' succumb to hubris and IT ineptitude) in theory, is to 'invert' the way the TETHER Financial Service Nodes that make up their Financial Services network hosted round the world,  is to change the way their collateralization audits work to be:

- permissioned,

- un-trusted,

- transparent,

- tracked at scale as immutable and

- 100% Q-day secured

where ALL collateralization events, ephemeral and permanent, are stored as micro DAG records (see sled db for what that might look like)

so TETHER and USDT can be 100% completely distributed and 100% Q-Day secured offering the above capabilities with the geo-distribution of their Financial Services Nodes (basically computers hosted in different Data centers located around the world)  that is needed add to actually scale USDT  Financial Service use under HUGE volume pressures without service disruption, as they become more popular by adding these capabilities.

These transparent, permissioned (#Tether is a private business get over it, its not BTC) audit-able records are replicated and geo-distributed (with double spend protection logic) to keep them accessible in the event of partial geo-network outages so USDT liquidity is always available.

To have USDT dynamically available as a JIT "Just in Time" service at every geo-located node in their network handling a collateralization event, TETHER has no choice but to re-design their Financial Services network  to add JIT Liquidty maintain their Market share of transactions, never mind grow them.

The records would get stored in distributed Micro DAGs (ie- using sled db) deployed on each ‘collateralization’ node in the network so make them easily audit-able with simple and easy to use DAG scanning tools.

In this ‘inverted collateralization model’ the entity holding the ‘supposed’/claimed liquidity/value backing the tokenized version(in this case #USDT) US $ denominated value, can have their collateral positions backing their issued token value easily ‘permission audited’ at any time, at low cost.

The audit costs are incurred by the third party auditor running the scanning tool and not the organization itself.(in this case Tether), so anyone screaming audit will need to pay for it.

There is really only one commercial barrier to designing, software integrating, validating, activating and implementing the above model:

The barrier is the cost of acquiring 100% Guaranteed #Q-day protection,

Why?

Because ALL of the PQC NIST math based encryption methods will get decrpyted by Quantum Computer Qubit Power Math Supremacy” coming out way very soon.

(n.b- the IETF is being maneuvered as we speak at the IETF committee level by the NSA to weaken that PQC set of NIST encryption methods to enable their backdoor access, per the NSA’s self created mandate).

The good news?

There are ‘non math based’ commercial Q-Day 100% Guaranteed Q-Day Decryption Protection technologies out there that can be integrated in to a financial service like USDT, but acquiring such capabilities will cost entities like Tether a one time technology use license and likely a royalty per liquidity event to acquire that guarantee for their business, and they will need to pay someone to integrate that capability and pay recurring support.

The bigger question then is:

Why if Tether is too cheap or to lacking in business savvy to wisely invest and acquire this type of 100% Q-Day protection capability plus designing and implementing the fork lift IT upgrade to their USDT Financial Service to support the above model to keep the current rising demand for third party audit transparency from eroding their Market Cap position?

Then What?

Can investors switch to another stablecoin like USDC and get audit transparency?

Nope.

All cryptocurrencies begin Commercial, privately owned Financial Services AND the public FOSS community projects like BTC Bitcoin or Ethereum et al , ALL of them have the same two pronged Q-day and Audit set of problems.

They can’t guarantee the  100% Q-Day protection needed for their collateralized positions behind their token value AND provide audit transparency.

Tick toc.

Q-Day is coming Ready or not.

With some investor urging, maybe these combo Q-Day and Transparent Audit Updates are ALL fork lift upgrades for TETHER and ALL Cryptocurrencies will prompt them to become  smart enough (at investor urging), fast enough to take on the planning, integration, validation, activation and execution and the skills necessary to do both to preserve and enhance the viability of their financial services. (Now there is an idea... duh.)

IF Q-Day decryption events start occurring in 2027, (Given Quantum Computer Vendors are likely understating their current Qubit Power by 4X )

then these stablecoins and all cryptocurrency projects are out of time, need to find the right Q-Day decryption protection, open their wallets, get spending and get going.

So cryptocurrency investors get going and start urging these stablecoin players and your favourite cryptocurrency projects to get going now.

Q-Day is coming ready or not.

Be safe everyone, and start urging!

TK over and out.