High Ethereum Fees Push Tether to Its Eighth Blockchain, OMG Network

High Ethereum Fees Push Tether to Its Eighth Blockchain, OMG Network 1

Tether has adopted Ethereum scaling solution OMG Network amidst record demand for settlement space on the “world computer.”

“The integration [between Tether and OMG Network] will result in a reduction of confirmation times delivering faster payments while fees will be reduced without compromising on-chain security,” Tether Inc. said in a blog Wednesday.

OMG Network can handle thousands of transactions at a third of the cost of Ethereum as a Layer 2 solution for Ethereum that batches transactions before settlement, OMG Network CEO Vansa Chatikavanij said in a statement.

Tether – now the third largest cryptocurrency with a market capitalization of $13.1 billion – has become the token of choice for traders. It scores in the top three Ethereum “gas guzzlers” consistently, according to Ethgasstaion. 

Adjacently, the cost to transact on Ethereum has grown in near lockstep with the rise of decentralized finance (DeFi) applications (dapps) such as Uniswap and Compound. 

High growth in both stablecoins and DeFi usage has had adverse results for Ethereum, which settles transactions for both finance applications. 

Indeed, on Aug. 13, the average transaction fee on Ethereum broke all time-highs last set during the 2017 initial coin offering (ICO) boom. 

“By migrating USDt value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network,” Tether CTO Paolo Ardoino said in a statement. “This is good for Bitfinex and our customers, and the whole Ethereum ecosystem.”

Tether issuance can be 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 blog states.

Batching Ethereum transactions on secondary layers, as OMG Network does, has become the preferred solution to scale the network. How to do so remains challenging from a technical perspective, however.

For example, Reddit announced a partnership with the Ethereum Foundation in June to white board possible solutions, such as batching transactions, for its native token.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin36,492 1.26 % 5.64 % 13.73 %
Ethereum2,414.9 1.83 % 5.90 % 24.93 %
Tether0.9977 0.53 % 2.00 % 0.44 %
Binance Coin371.53 0.88 % 4.72 % 22.01 %
USD Coin1.000 0.13 % 1.34 % 0.14 %
Cardano1.030 2.13 % 0.26 % 35.37 %
Solana92.91 1.30 % 5.70 % 33.66 %
XRP0.6031 0.69 % 2.91 % 21.15 %
Terra63.98 1.42 % 2.05 % 17.25 %
Polkadot18.43 1.74 % 7.76 % 28.43 %

bitcoin
Bitcoin (BTC) $ 36,111.00
ethereum
Ethereum (ETH) $ 2,373.13
tether
Tether (USDT) $ 0.990593
binance-coin
Binance Coin (BNB) $ 366.15
usd-coin
USD Coin (USDC) $ 0.989796
cardano
Cardano (ADA) $ 1.01
solana
Solana (SOL) $ 90.77
xrp
XRP (XRP) $ 0.593841
terra-luna
Terra (LUNA) $ 62.71
polkadot
Polkadot (DOT) $ 18.19