Tether Adds Token on Ethereum Sidechain to Reduce Network Load

Tether is the biggest gas burner project on Ethereum.

Tether, the leading USD-pegged stablecoin, has released its token on OMG Network, a Plasma-based blockchain network.

The majority of Tether tokens are supplied on the Ethreum network and by far is the largest gas utilizers on the decentralized network.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Announced on Monday, the additional tokens were launched on an Ethreum sidechain to boost its performance.

According to Paolo Ardoino, Bitfinex’s CTO, this will turn out to be cost-effective to Tether and will drive performance improvements and relieve pressure on the root chain network.

Formerly known as OmiseGo, OMG Network is based on Plasma, a layer-two solution for overcoming the scaling issues with Ethreum blockchain.

Along with Tether on the new network, OMG Network launched the beta mainnet of its network as well on Monday.

Suggested articles

Did COVID-19 Save the Forex Industry?Go to article >>

Ardoino also revealed that USDT on the Plasma network will initially available to the traders on Bitfinex allowing them to react faster on trading opportunities.

A controversial project, yet in high demand

Tether is the most used stablecoin globally despite its link with many controversies. The project faced criticism for years for its opaque operation and accused of not maintaining a 1:1 ratio of USD in its currency chest.

Tether’s name also surfaced in the massive controversy of Bitfinex for hiding a loss of $800 million by taking a line of credit from the stablecoin issuer.

Meanwhile, Tether is continuing to pump more and more stablecoins into the market with increasing demand among traders.

The iFinex subsidiary even launched Tether Gold, a stablecoin backed by the physical yellow metal which are kept in a vault in Switzerland, according to the company.

Notably, Tether is already available in multiple blockchains including Omni, Ethereum, Tron, EOS, and Algorand.

Got a news tip? Let Us Know