Victor Ugochukwu · Oct 27, 2020 . 6min read
Tether plans to support ZK-Rollups, another Layer-2 solution
With Tether moving to support ZK-Rollups, perhaps this could be the needed impetus for Layer-2 solutions to finally get a break-off
By Victor Ugochukwu · Sep 1, 2020 . 5min read
USDT stablecoins issuer Tether is planning to support ZK-Rollups, another Layer-2 solution just some weeks after implementing Omisego.
Paolo Adroino, Tether CTO tweeted about this saying;
ZK-Rollups is a zero-knowledge proof technique that helps rollup or bundles many transactions into a single transaction, and therefore, helps reduce pressure on Ethereum.
According to a post by The Block, a cryptocurrency media firm, Paolo Adroino on an interview said:
“The idea behind ZK-Rollups is aggregating multiple operations into one single L1 [Layer1] transaction that ‘compresses’ all the underlying transactions,”
Adroino also added that,
Multiple operations include the management of ether and ERC-20 token transfers, as well as managing smart contract operations
We had earlier reported of a TRON – Ethereum ERC20 USDT swap which saw Tether moving $1 billion in total from TRON to Ethereum. With Tether moving to support ZK-Rollups, perhaps this could be the needed impetus for Layer-2 solutions to get a break-off finally.
Earlier today, Vitalik Buterin waded in especially during this period of Ethereum congestion and rising gas costs. He tweeted,
To those replying with “gas fees are too high”, my answer to that is “well then more people should be accepting payments directly through zksync/loopring/OMG”. Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it.
Tether has seen exponential growth this year, implementing the ZK-Rollups Layer-2 may increase adoption further.
Clearly, stablecoins which have seen exponential growth in usage and adoption in 2020 continues to fuel recent DeFi boom. Tether is the largest by market cap. It has doubled in valuation within just four months edging Ripple to snatch the third position on Coinmarketcap.
The DeFi boom has kept pushing for innovation within the industry. From USDC implementing “gasless sends” and now Tether adding support for ZK-Rollups, interesting times lie ahead.
Follow Cryptodose for daily updates.
Victor Ugochukwu · Oct 26, 2020 . 5min read