Yesterday saw the launch and activation of Tether (USDT) on the OMG Network, which might allow relieving the load on the Ethereum blockchain.
We are pleased to announce that Tether (USDt) is live on the OMG Network transport layer.
Read our full announcement ⬇️https://t.co/aeKiyyGxmf pic.twitter.com/5EKJGUPxjM
— Tether (@Tether_to) August 19, 2020
Thanks to this support, it will be possible to exchange Tether on the OMG Network, following the integration made by Bitfinex itself.
This will lower the costs for users since the current fees on the Ethereum blockchain are greatly excessive and the waiting times to confirm transactions are also getting longer.
What is OMG Network?
The OMG Network was created specifically to scale the Ethereum blockchain as a layer-2 solution and thus lower costs and time without compromising the security provided by the first layer of the Ethereum blockchain.
It should be noted that Tether is widely used both on Ethereum which has almost $7.5 billion, but also on other blockchains like TRON where there are over $4 billion.
Tether is also present on other blockchains but with lower volumes.
Moreover, there will be a 1 billion USDT swap that will convert the tokens from Tron to the ERC20 protocol.
Tether on OMG Network for lower fees
Surely these efforts will lighten the Ethereum blockchain and users will only benefit from this event.
The CTO of Bitfinex and Tether, Paolo Ardoino, commented positively on the news:
“By migrating USDt value transfers to the $OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network”.
By migrating USDt value transfers to the $OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network https://t.co/Ar06pCJrIV
— Paolo Ardoino (@paoloardoino) August 19, 2020
At this point, all that is left to do is wait for the funds to be moved and measure the offload of the network, since all previous transactions would no longer take place and the cost of gas could fall.
Obviously, there is still criticism of this stablecoin for having a traditional underlying (the American dollar) that has little to do with blockchain and decentralization, considering that there are other completely decentralized stablecoins belonging to other protocols, such as DAI.