Hermez Network, a decentralized project focused on scaling the Ethereum network, announced it is integrating the tether (USDT) token in a bid to make transactions more affordable.
- USDT – a U.S. dollar-based stablecoin – will be used to provide cheaper payments and token transfers in a move to counter high "gas" fees on the Ethereum network, the company announced Monday.
- Hermez is a "zero-knowledge rollup" – a solution that runs as an overlay on Ethereum and helps increase transaction throughput on the blockchain network by rolling multiple transfers into a single transaction.
- The gas fees required to make transactions on Ethereum have been prohibitively high in recent months, making it hard for many projects based on the network to make microtransactions.
- “Hermez is excited to welcome tether tokens as the first of many projects to join the layer two network ahead of our official launch this year," said Jordi Baylina, tech lead at Hermez Network.
- The firm further hopes to create a “self-sustaining network” by reinvesting 40% of any value generated into community-driven layer one projects.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.