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

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.

(Excerpt) Read more Here | 2020-09-01 02:10:00
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