Tether USDT: First Token on Hermez Layer-Two Network

Tether and Hermez Join Forces

The world of stablecoins just got a new spin, thanks to Tether (USDT) becoming the inaugural token on the Hermez layer-two network. Think of it as Tether strutting onto the blockchain stage with its best dance moves, ready to revolutionize transactions and disrupt the current landscape.

Batched Transactions: The Future of Efficiency

Once officially launched in early 2021, Hermez will enable batched USDT transactions, setting the stage for a smoother and more efficient Ethereum experience. David Schwartz, the project lead at Hermez, described the network as a playground run by “permissionless coordinators” who will curate the transaction batches tantalizingly. It’s like organizing a potluck, where everyone’s contributions matter, but the coordinators get to pick the best dishes to serve.

Layer-Two Networks: The Emerging Trend

Layer-two adoption has spiked recently, especially when Ethereum gas fees feel like getting robbed at a jazz concert—expensive and unwanted. A report from Delphi Digital indicated that, at the time, layer-two rollups were accounting for less than 1% of daily decentralized exchange (DEX) trading volume. But as the Ethereum network faces periods of traffic congestion, the tides have turned, and layer-two solutions like Hermez are stepping up to the plate, ready to cash in on those chaotic moments.

Boosting Fee Predictability with ZK-Rollups

One of the main advantages that Hermez promises is fee predictability through zk-Rollups after their initial bootstrapping period. Why is this important? Well, as Hermez reps eloquently put it, “a batch is the same scarce resource as a layer-one block today.” This means that transactions will be processed in manageable groupings—think of it like an overcrowded subway being divided into different train lines, allowing everyone to reach their destination without unnecessary delays.

Supporting Open-Source Development

What’s more, coordinators on the Hermez network will need to possess the native HEZ token to help process transactions. It’s like buying a ticket to a fancy club—you can’t get in unless you’re part of the exclusive club. Additionally, Hermez has a philanthropic twist: 40% of the value generated will go towards Gitcoin grants, supporting open-source development initiatives. Now that’s what I call a win-win!