In line with an official web-blog post published, the new integration between Tether and OMG Network will end in a discount of confirmation times delivering faster payments while fees will be reduced without compromising on-chain security.
OMG Network can handle thousands of transactions at a 3rd of the price of Ethereum as a Layer 2 solution for Ethereum that batches transactions before settlement, OMG Network CEO Vansa Chatikavanij said within an official statement.
Tether [USDT] – now the third largest cryptocurrency with a market capitalisation of over $13 Bln – has become the token of choice for traders. It scores within the top three Ethereum “gas guzzlers” consistently, consistent with Ethgasstaion.
Moreover, the price to transact on Ethereum has grown in near lockstep with the hike in DeFi dapps like Uniswap and Compound.
Ethereum Fees On The Hike
High growth in both stablecoins and DeFi usage has had adverse results for Ethereum [ETH], that now settles transactions for both finance apps.
Indeed, earlier on 13th Aug., the avg transaction fee on Ethereum broke all time-highs last set during the 2017 ICO boom.
According to the Tether CTO, ‘Paolo Ardoino’:
“By migrating USDT value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the basis chain network,” This is good for Bitfinex and our users, and the whole Ethereum ecosystem.”
Tether issuance are often found on other blockchains including, but not limited to, Omni, Liquid and Tron.
OMG Network will also be used for withdrawals and deposits on Tether Inc. sister firm, Bitfinex, the web-blog post adds.
Batching Ethereum transactions on secondary layers, as OMG Network does, has become the well liked solution to scale the network.
For example, Reddit announced its collaboration with the Ethereum Foundation earlier in June to white board possible solutions, like batching transactions, for its native token.