New Crypto Bridge Will Make Tether Transactions Cheaper, CTO Says

Bitfinex and Tether CTO Paolo Ardoino says he hopes pToken – a project he has assisted – will make it easier for retail USDT holders to swap their tokens from one chain to another.

Apr 25, 2020 at 5:20 p.m. UTC
Updated Sep 14, 2021 at 8:33 a.m. UTC

Tether's CTO hopes a new EOS-Bitcoin interoperability bridge could one day make tether cheaper and faster because users will be able to make transactions on less-congested blockchains.

Paolo Ardoino, who is also the CTO of Tether's sister company, crypto exchange Bitfinex, told CoinDesk this is part of the reason he has been working with the team behind the token wrapper project, pTokens, to develop an interoperability bridge between the Bitcoin and EOS networks.

Launching Friday, the company will initially support a bitcoin wrapper on the EOS mainnet – pBTC. Essentially, a user will be able to deposit funds in one network, say Bitcoin, and pToken will issue the user the equivalent amount of "wrapped" tokens on the new network. The company hopes to support a bridge between litecoin and EOS, as well as EOS and ethereum.

An EOS wrapper for a tether ERC20 token is currently being planned, according to pTokens' website. Founder Thomas Bertani told CoinDesk there were no plans yet to consider developing an EOS wrapper for tether on Omni, a secondary layer on top of the Bitcoin protocol.

A key benefit of interoperability is users can better leverage the different characteristics of different blockchains, Ardoino said. One of the initial reasons Tether created an ERC20 version in 2017 was so it could sidestep the congested Bitcoin network.

"Omni was costing a lot of money, up to $500, Ethereum wasn't so saturated, so the fees were cheap. Every trader would have preferred to move the funds onto the Ethereum blockchain because it was cheaper and faster," Ardoino said.

Ethereum speeds slowed due to network congestion by the end of 2017, however. Creating an interoperability bridge between it and EOS – which has higher throughput and much less chain activity – essentially provides users with a "backup" option, so they can continue to trade with minimal fees and quick settlement times, he claimed.

Many crypto exchanges, including Bitfinex, already offer users two different types of tether, so the ability to swap between protocols already exists in some form. However, interoperability bridges make it easier for users themselves to move between the different protocols.

Ardoino foresees Bitfinex and Tether will continue to perform chain swaps. Major exchanges looking to swap $10 million worth of tether between two chains will always be able to organize it with them directly, he said.

But, he added, greater interoperability will allow retail investors with smaller amounts of tether to also shift freely between the different blockchains.

Ardoino hopes his involvement with pTokens might encourage other developers to build bridges to other protocols, creating greater connections between all the different chains. Enhancing interoperability may one day act as the bridge for tether to launch on many other new protocols, he added.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
2
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
3
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
4
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown