On June 1, 2020, OMG network became the first sidechain ever to add Tether (USDT) capability on Ethereum (ETH) aiming to improve the scalability and reduce costs of transaction on the platform.
In a formal announcement on its website, OMG revealed that it would work with Tether’s sister company, Bitfinex Inc., to integrate the USDT stablecoin on Ethereum’s Plasma sidechain productively. The goal of this partnership is mainly to reduce the confirmation times, making payments faster, and reducing transaction fees on the ETH blockchain.
The new integration builds on the recent usage of USDT for token exchange. It will allow traders to move their digital assets more quickly in the event of increased market volatility, such as that witnessed on March 12, 2020.
According to the ETH gas station, about 8,900 ETH was spent on fees last month. By delegating part of this volume to the OMG network, Tether hopes to reduce the burden on Ethereum and improve scalability.
Paulo Arduino, Bitfinex CTO stated:
“By migrating USDt value transfers to the OMG Network, we save costs, drive performance improvements, and relieve pressure on the root chain. This is good for Bitfinex, our users, and the entire Ethereum ecosystem.”
Moreover, Paolo believes that today’s partnership will allow traders to react faster to trading opportunities and take advantage of arbitrage more efficiently between exchanges as the ETH network grows.
Scalability on Ethereum Gets a Major Boost
Meanwhile, OMG Network also announced that it has finally launched V1 Mainnet Beta solution that scales Ethereum to thousands of transactions per second while simultaneously reducing transaction fees to one-third of the usual amount.
The OMG scalability solution, which has been in the works for three years, will bring in the More Viable Plasma (MoreVP) specification to increase the processing capacity of Ethereum. This new protocol batches several transactions in a single block while charging a one-time fee.
Commenting on the development, Vansa Chatkavanij, OMG Network CEO discussed how blockchain finally unlocked permissionless transactions on the internet, with the Ethereum network already providing the security infrastructure for such transactions.
OMG to Facilitate True Global Ecommerce
Chatkavanij was clearly excited about the new development that the OMG platform will bring to ETH, adding that their scalability solution facilitates true global ecommerce, while also allowing for transactions to be done at meagre costs.
Interestingly, news of OMG Network launching its Ethereum scalability solution follows a recent listing of the project’s OMG token on Coinbase, which led to the coin gaining over 56.7% in just seven days.