Tether has figured out how to reduce pressure on the Ethereum blockchain

CONTENT

  • Tether is exploring the possibility of using a new method of collecting transactions on the Ethereum network

  • The USDT stablecoin issuer had to come to terms with Ethereum’s dominant role in the development of the project

  • Meanwhile, the average commission has already reached the absolute maximum

International consortium of news organizations developing transparency standards.

The company hopes to solve the problem of inflated commission costs in the Ethereum blockchain network using the ZK-Rollups concept.

USDT stablecoin issuer Tether is exploring the possibility of introducing a scaling technology called ZK-Rollups into the Ethereum blockchain network.

Paolo Ardoino, CTO of Bitfinex and Tether, said this on his Twitter page..

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ZK-Rollups is a concept aimed at increasing scalability by collecting multiple transfers within a single transaction. A smart contract is supposed to be used to separate and verify transfers within each tree-like transaction..

Thus, Tether wants to reduce the pressure on Ethereum caused by the huge activity around USDT based on the ERC-20 protocol..

Disappointing records

Ardoino’s announcement comes amid reaching the average commission on the Ethereum network at an all-time high of $ 3.45.

Breaking News: Could Tether Collapse Bitcoin & Ethereum?

Source: bitinfocharts.com

The previous high was set on August 13, when the average transaction fee was $ 3.35.

According to the analytical resource glassnode, on September 1, Ethereum miners earned on commissions over $ 500 thousand.

Source: glassnode.com

Despite the fact that USDT no longer ranks first in the list of projects on the Ethereum network in terms of commission costs, stablecoins – stablecoins – literally translated from English “stable” coins – continue to gain popularity in the digital asset market. With … More is still in the top 3 in terms of spending (over 26 thousand ETH commissions spent in August).

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Tether has figured out how to reduce pressure on the Ethereum blockchain

In the first place in terms of costs is the decentralized protocol for exchanging cryptocurrencies Uniswap (almost 31.7 thousand ETH were spent in August).

Market bacchanalia

The surge in commission spending comes amid the outflow of Ethereum from exchanges, as well as the popularity of DeFiDecentralized finance (DeFi) is financial services built on blockchain technology that offer users access to an open, efficient and … More.

This is not the first time the Ethereum network has experienced surges in fees. In early August, the editorial staff of BeInCrypto reported that the price of transactions on the Ethereum network surpassed the bitcoin commission rate..

However, the increase in the price of commissions has already become a demonstration of increased activity within Ethereum..

At the beginning of August, the activity was so violent that it approached the historical maximum at the level of 1.29 million transactions per day..

Tether has already attempted to relocate USDT to other blockchains (TRON, OMG Network, Algorand).

Nevertheless, so far none of the listed blockchains has been able to achieve at least approximately the same results as Ethereum..

Tether Integrates With Plasma Sidechain to Reduce Load on Ethereum

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Tether has figured out how to reduce pressure on the Ethereum blockchain
Tether has figured out how to reduce pressure on the Ethereum blockchain
Tether has figured out how to reduce pressure on the Ethereum blockchain
Tether has figured out how to reduce pressure on the Ethereum blockchain

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