The stablecoin project looks to a sidechain to improve performance
The cryptocurrency platform Tether (USDT) has been working on a solution for the ongoing situation of Ethereum’s (ETH) fees getting too expensive. In response, today, the company has announced the integration of the OMG Network Plasma sidechain, formerly known as OmiseGo. This move promises to offer cheaper transactions to users, which means that the USDT stablecoin is now available on the OMG Network.
The integration comes with other perks; this is the first time that Tether is integrating an Ethereum sidechain to boost its performance. This digital stablecoin is, by far, the largest “gas guzzler” on the Ethereum network with at least $1.84 million, or 8,900 ETH, spent in fees just last month, according to ETH Gas Station. Therefore, by sending some of the transaction volume to the OMG Network, Tether is seeking to ease the huge load that is currently experiencing on Ethereum.
According to Bitfinex’s CTO, Paolo Ardoino, “By migrating USDT value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network.” He also added that the network will also be accessible through Bitfinex and “allow traders to react faster to trading opportunities.” For now, since the network launched recently, there aren’t any other venues that accept it; therefore, Stephen McNamara, the COO of OmiseGo, confirmed to Cointelegraph that the company is already in negotiations with other exchanges and wallet providers to integrate its platform and have more service providers.
This newest Plasma technology has been proposed as the best solution to compensate for Ethereum scaling prices; however, there were major issues that caused the crypto community to switch to Optimistic Rollups. This is the reason why OmiseGo and several other projects were abandoned while dealing with Plasma.