Tether plans supporting ZK-rollups in order to reduce the pressure on the Ethereum network after the integration with OMG network. Tether plans supporting the Layer-2 scaling solution ZK rollups as we are reading more in the Tether coin news.
ZK-Rollups is a zero-knowledge proof technique that helps the rollup or bundle many transactions into one single transaction and therefore will reduce the pressure on Ethereum. Paolo Ardoino, the CTO of Tether explained that multiple operations include the management of Ether and ERC20 token transfers and also managing smart contract operations:
“The idea behind ZK-Rollups is aggregating multiple operations into one single L1 [Layer1] transaction that ‘compresses’ all the underlying transactions.”
He went on to say that ZK-rollups is the most comprehensive and preferred scaling solution which will help to have all-data on the chain and not to rely on a sidechain. The news came only two weeks after Tether integrated with OMG network which is another Layer 2 scaling solution that is designed to reduce the congestion on Ethereum. Tether even moved 3 million coins to the OMG network form Ethereum.
The largest stablecoin on the market, Tether has over 85% market share and it works on seven blockchains: Ethereum, EOS, Liquid Network, Algorand, Omni, OMG Network and TRON. Ethereum remains the largest value settler for Tether according to the reports in the Tether crypto news.
Tether continues serving as a bridge between crypto and fiat thus boosting crypto adoption, especially in the current conditions in a pandemic which made everything uncertain. The viability and security of digital currencies have come to the forefront and people are now looking out for alternatives to traditional payment methods, and here’s where Tether can help.
We have talked about the rise of decentralized finance (DeFi) so many times on our site, and the space has seen a massive explosion over the recent weeks and months, reaching a total value locked of around $7.13 billion according to DeFi Pulse. The crypto assets pertaining to this space have also reached a cumulative value of around $13.35 billion. According to one analyst, it is scary how much DeFi actually runs on two stablecoins – Tether (USDT) and USD Coin (USDC). In context to this, there are hundreds of millions of dollars worth of these cryptocurrencies in the DeFi ecosystem, and all of that reached a point where the decentralized DAI stablecoin is actually partially backed by USDC.
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