Recently Ethereum has begun losing its ground to its competitors. This is mainly owing to the reason that the USDT utilization as well as Hermez might be able to fix the problem.
Tether has lately launched on the network of Hermez which is a scalability solution-based for Ethereum on the concept of zk-rollup. These rollups offer a way to roll up or batch transactions. In addition, this will be lightening the burden on the ETH network.
Tether Resolves Many Issues
The most important concept for rollup is data available that suggests a need for the full on-chain availability of state data of this rollup. On the other hand, practically speaking, this indicates the ETH network is aware of the token balances of their user accounts of every transaction on Hermez rollup. Furthermore, this information can be used for the rapid withdrawal of funds and distribution of them to new owners during any case of malfunction.
The zk-rollups are similar to blockchain which are completely dependent on the layer 1 security network. With the use of zk-SNARKS, this Hermez rollup will issue regular proofs. Additionally, the proof will stay the same in size while the hidden data might be arbitrarily large.
By introducing USDT through Hermez, Tether is hoping to reduce the pressure of ETH gas fees. Tether contract will consistently manage the increasing gas fees for the users. While the fees for transferring the tokens remain more than $10 on ETH, the market is considerably diversified through their usage of Tether.
Hermez also offers Tron that is a native alternative from ETH. The Hermez group is aware of their predicament and has been dedicated to integrating multiple exchanges.
