Tether will migrate to Hermez Network
Tether plans to operate on the basis of the Hermez Network. This was stated by the CTO of cryptocurrency Paolo Ardoino.
According to Ardoino, this is an excellent blockchain scalability solution using ZK-Rollups technology at runtime. With its help, hundreds of transactions are combined into one.
An interactive protocol called “zero knowledge proof” does all cryptographic computation off the network, transferring the finished result to the Ethereum blockchain. This speeds up mutual settlements.
The official launch of USDT on Hermez Network will take place within a month. The starting point will be the launch of the Hermez mainnet, scheduled for mid-February.
The reason Tether is moving to a new network is to optimize fees and transaction speed. The new network will process up to 2000 transactions per second. In this case, the commission will be 1/10 of the current levels, that is, about one dollar.
In the coming years, the Ethereum network will be packed with transactions to the eyeballs as the number of projects on the blockchain grows, and the full launch of Ethereum 2.0 is still very far away. This, in fact, is the reason for the transition of Tether to Hermez Network.