The issuer of the largest by market capitalization stablecoin, Tether (USDT), announced the launch of the coin on the OMG Network sidechain (formerly OmiseGO), a scaling solution for Ethereum.
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
In June, Paolo Ardoino, Tether’s chief technology officer, expressed interest in moving USDT from Ethereum to the OMG Network at the outset of its beta testing. In his view, this would reduce costs, boost throughput, and ease pressure on the main network.
The press release said the integration would shorten transaction confirmation times, enabling faster payments. Fees would be substantially lower than on the mainnet without compromising security.
“This is good for Bitfinex and our customers, as well as for the entire Ethereum ecosystem,” Ardoino commented on the news.
According to him, OMG Network will facilitate the on- and off-ramping of USDT on Bitfinex. As a result, traders will be able to respond more quickly to changing market conditions and use arbitrage between exchanges more effectively.
Vansa Chatikavanij, head of OMG Network, said the network supports “thousands of transactions per second” (TPS) with fees “at a few cents.”
OMG Network is based on the More Viable Plasma (MoreVP) specifications. Plasma is one of the concepts for increasing Ethereum’s throughput by creating an additional second-layer network.
At the start of the beta, developers introduced a blockchain explorer and a demonstrational web wallet. The latter allows users to access the network, send transactions and withdraw assets back to the main Ethereum blockchain. In the future, developers promised to implement OMG staking, as well as faster and more scalable withdrawals.
Earlier, the developers of Matic Network, another Layer 2 solution for Ethereum, achieved testnet throughput of 7,200 transactions per second.
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