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Tether is integrated into the plasma side chain to reduce the strain on Ethereum

June 1, 2020

Stablecoin Bitfinex’s Tether (USDT) is now available on the OMG Network, an Ethereum plasma side chain started on June 1st for the project formerly known as OmiseGo.

The integration, also announced on June 1, is the first time that Tether has integrated an Ethereum sidechain to improve performance. Tether is by far the largest “gas gobbler” in the Ethereum network. According to the ETH gas station, around 8,900 ETH (around $ 1.84 million) was spent on fees last month. These are more than the next five protocols combined, one of which is said to be a Ponzi scheme.

By delegating part of this volume to the OMG network, Tether hopes to reduce the burden on Ethereum.. Paolo Ardoino, CTO of Bitfinex, said: “By migrating USDT value transfers to the OMG network, we save costs, increase performance and relieve the root chain network.”

Tether is integrated into the plasma side chain to reduce the strain on EthereumTether is integrated into the plasma side chain to reduce the strain on Ethereum

The OMG-based tether network will be accessible via Bitfinex and “enable traders to react faster to trading opportunities”.Ardoino said although there are no other places to accept it given the recent launch of the network. Stephen McNamara, OmiseGo’s chief operating officer, told Cointelegraph that talks about integrating OMG with other exchange and wallet providers are ongoing.

Simultaneous start of plasma

While Plasma was originally touted as the best second layer solution for climbing in the EthereumThe main problems with this led to the enthusiasm of the community being transferred to optimistic rollups.

This left OmiseGo and a few other projects dealing with plasma technology alone. The OMG Network, a complete rebranding of OmiseGo and its parent company Omise, also launched its beta core network on June 1st.

The project appears to have cut several corners to make its “plasma more viable”.. In particular, the side chain is based on the “proof of authority” consensus, and the documentation says that it is operated by a single entity. However, supports monitoring nodes that check the accuracy of transactions.

Other commitments include the inability to make a “massive deviation” from the side chain, That was one of the greatest dangers of the original plasma concept. and a limited scope in which only one chain is createdinstead of a full network of them.

Even so, The network enables the direct placement of ETH or ERC-20 tokens, while reports have been reported to reduce fees by 66%. This can be an attractive proposition as fees for Ethereum continue to skyrocket.

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