Tether (USDT), launched on the Hermez Network, is a scalable Ethereum solution based on the zk rollup concept. The lag provides a way to collect or “collect” transactions to ease the load on the Ethereum network.

The key to clustering is the concept of data availability, which means that state data for a build is always available for the entire series. In practice, this means that the Ethereum network knows the token balance of all user accounts in the Hermez group after each transaction, and this knowledge can be used to quickly withdraw funds and distribute them to new owners in case of errors.

Zk convulsions can be considered as separate “blockchains” that are completely dependent on the Layer 1 safety network. Through the use of zk-SNARKs, the Hermez Group regularly publishes evidence on the Ethereum network to support them. Due to the abbreviated SNARK characteristic, the original data can be almost arbitrarily large, while the size of the proof copy remains constant. This makes it ideal for scalability applications, as the Ethereum network can convincingly demonstrate that the network works as intended with only a small fraction of the data processed by the group itself.

By launching USDT on Hermez, Tether hopes to ease the pressure on Ethereum gas charges, as the Tether contract has always been a major user of gas. Since token transfer fees always stay above $ 10 on Ethereum – the exchanges increase withdrawal fees in response – the market has diversified significantly and started using Tether.

The value converted to USDT on Ethereum, Tron and Omni (Bitcoin). Source: Mineralogy.
Tether on the Tron network has reached the level of Ethereum in terms of portability – an important milestone for Tron and a problem for Ethereum followers. Perhaps the most important factor driving Tron’s growth is the support of a number of exchanges such as Binance, Huobi, OKEx and many other exchanges that are traditionally associated with Asian and Asian traders. No matter what users think of Tron, they can argue about low fees and good acceptance.

Hermez provides an Ethereum alternative for Tron, although it adds the OMG network to the plasma network, which still does not appear to have much adoption. Hermez is currently available via MetaMask, which is connected to the user’s Ethereum wallet. Electronic transactions require that a deposit transaction be made from the main chain in Ethereum, after which funds are made available upon collection. Without many potential funding avenues, however, Hermez risks being stifled by competition from other side chains and Tier 1 networks.

The Hermez team is fully aware of this situation and is working to integrate with as many exchanges as possible, but it remains to be seen whether their efforts will succeed.

Source: CoinTelegraph