Newbies in the crypto world tend to ask the question- 'can cryptocurrency transactions be reversed?'. This question is barely asked out of fine curiosity but is often asked in situations where a user has mistakenly sent funds to a wrong address or to a right address on the 'wrong network'.
Even experts make mistakes if they do not double check the address to which funds are being sent. Which is why it is always advised to not write an address individually but use the 'copy and paste' function.
The concept of decentralization in cryptocurrency means that there is no governing body and no central account. You have a hundred percent control of what your fund does and where it goes, thus providing the users with privacy and anonymity without limitation.
Since there is no 'bank' to make complaints to in the case of a mistaken address it means the funds cannot be reversed or recovered but will forever be lost in the block.
USDT transactions are reversible
USDT is a stable coin that is pegged to a dollar and in my definition a fake cryptocurrency which imitates fiats and doesn't provide you with full control and anonymity due to it's centralised nature.
The heavily centralised nature of USDT on the Tron and Ethereum network means that it is controlled by a regulatory body thus allowing every transaction to be monitored, frozen, and possibly reversed in the events of an incorrect recipient or stolen funds by means of smart contracts.
This may seem like an advantage to a certain degree but a look at the greater picture reflects that USDT is no different from CBDC (central bank digital currency) since the purpose of anonymous peer to peer transfer is defeated. Your funds can literally expire and you could be answerable to regulations in cases of suspicious activities.
Source [Credit- Mohammad Hoseini Rad]
To Quote a statement from scottcbusiness's article- (How Safe Are Stablecoins Part 1 – Fiat-Collateralized Coins)- "One of the things to understand about stable coins that are heavily centralized like USDT aka tether is that they have 100% control over all of the funds with way more over reach than any bank of the Federal reserve could have"
As a user of USDT you have every reason to be scared since your funds are not completely in your possession but can be frozen or moved by regulatory bodies at will if situation arises.
"Anonymity and full control is the sole reason for the existence of cryptocurrency. Unfortunately, USDT says otherwise."
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I guess unless crypto itself goes really mainstream and we no longer have a need for some form of FIAT, we can only make the best with what we have at the moment. 😰
But your crypto activities being monitored by regulations isn't something anyone would like especially since the purpose of crypto is stylishly being taken away via stable coins.
And here comes some computer Brainers who wrote codes to change the copied address in your clipboard to something similar. And I guess we have to double check even after using copy and paste format.
Recently my computer got affected by this malicious software and I never really find a way to terminate it's activity or remove it completely.
Infact I'll say 70% of cryptocurrency lost since it's adoption has not been a mistake of user typing the address incorrectly, they have been Phished and maliciously stolen
I believe in the near future more stable coins would be created. Since the whole world of cryptocurrency is at its infant stage, we just have to bear the risks of having our activities monitored.
Best thing is to stay away from a cryptocurrency that will infringe on your privacy and anonymity.