The leading stablecoin Tether has been integrated with the rebranded OMG Network.
Cryptocurrency exchange Bitfinex has integrated the Tether (USDT) coins to the OMG Network from the first day of summer. The OMG Network is an Ethereum-based payment service network that was formerly known as OmiseGO and has been officially rebranded to OMG Network on June 1.
As stated in the official announcement, the integration of Tether (USDT) will help to reduce transaction confirmation time and lower the transaction costs at the same level of security as Ethereum. Furthermore, Bitfinex will also set up USDT deposits and withdrawals on OMG Network. According to Paolo Ardoino, CTO at Bitfinex:
By migrating USDT value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network. This is good for Bitfinex and our customers, and the whole Ethereum ecosystem.
The move is the first-ever when the leading stablecoin is incorporated into the OMG Network, which is a Plasma-based blockchain network, created for overcoming scaling issues with the Ethereum blockchain.
USDT currently is the leading gas generator on the Ethereum network, which spent nearly 9.140 ETH in fees during the last 30 days, according to the latest data of ETH Gas Station.
According to the statement, the Ethereum network is a limited resource that might be vulnerable to high network congestion. Since each block has limited space available to users, the total transaction throughput is capped at approximately 12 TPS. When transaction demand exceeds 12 TPS, settlement times increase and gas costs can rise significantly the official report states.
In the meantime, the CEO of OMG Network Vansa Chatikavanij claims, that the “OMG Network supports thousands of transactions per second and reduces transaction costs to a third of Ethereum”. According to him, the partnership with Bitfinex aims to address blockchain’s scalability issues and drive further growth and adoption of open financial services.
The rebranded OMG Network was first established in 2017 as OmiseGO and aims to enable faster, cheaper, and more secure open financial services. The network is currently the most affordable way to transfer ETH and ERC20 tokens.