After OMG Network integration, the stablecoin issuer Tether is looking to integrate another layer-2 solution in the form of ZK-Rollups, to ease up the growing congestion on the ethereum network. ZK-Rollups technique helps the user in reducing the pressure on Ethereum by accumulating various transactions into one.
While talking about Tether’s future plans, the CTO of the company, Paolo Ardoino, stated,
“The idea behind ZK-Rollups is aggregating multiple operations into one single L1 [Layer1] transaction that ‘compresses’ all the underlying transactions.”
Ardoino further explained that if the company integrates with ZK-Rollups then it would not only manage transactions of Ether and ERC-20 tokens but also the operation of the smart contract.
Tether’s CTO believes that currently, ZK-Rollups is a most comprehensive and preferred scaling solution in the market, that is because despite accumulating all the data on a sidechain, it assembles them on-chain.
As per the report, two weeks ago, Tether integrated with another Layer-2 scaling solution called OMG Network. The Layer-2 solution helps the stablecoin issuer in reducing the blockage on Ethereum.
The report further has notified that recently a total of 3 million USDT tokens from the Ethereum network has been shifted to OMG Network.
Initially, when Tether announced that it was planning to integrate with the OMG Network, Bitfinex stated that this would not only reduce the confirmation time of the transaction but also its fees.
Bitfinex further mentioned that for quite a long time, the average gas price of Ethereum and vulnerabilities on the network was increasing. And integration with the OMG Network would offer lower transaction fees.
It is to be noted that currently, the largest stablecoin present in the market is Tether. This stablecoin has a market share of more than 85 percent.
Presently, the stablecoin is being operated on seven blockchains .i.e., Algorand, Ethereum, EOS, Liquid Network, OMG Network, Tron and Omni.
Out of these seven blockchains, most of its value gets settled on Ethereum Blockchain.
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