Tether is now planning to add support for ZK-Rollups to reduce pressure on Ethereum

advertisement

After integrating with OMG Network, stablecoin issuer Tether is now planning to add support for another Layer-2 scaling solution — ZK-Rollups.

ZK-Rollups is a zero-knowledge proof technique that helps rollup or bundle many transactions into a single transaction, and therefore, helps reduce pressure on Ethereum. 

“The idea behind ZK-Rollups is aggregating multiple operations into one single L1 [Layer1] transaction that ‘compresses’ all the underlying transactions,” Paolo Ardoino, CTO of Tether, told The Block. Multiple operations include the management of ether and ERC-20 token transfers, as well as managing smart contract operations, said Ardoino.

He went on to say that ZK-Rollups is the “most comprehensive” and “most preferred” scaling solution as it helps to have all data on-chain to not to have to rely on a sidechain. 

The news comes two weeks after Tether integrated with OMG Network, another Layer-2 scaling solution that is designed to reduce congestion on Ethereum. Last week, Tether moved 3 million USDT coins to OMG Network from Ethereum.

Tether, the largest stablecoin in the market with over 85% market share, currently works on seven blockchains: Algorand, Ethereum, EOS, Liquid Network, Omni, OMG Network, and Tron. Ethereum by far remains the largest value settler for Tether, as The Block reported recently.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More