The popular stablecoin Tether (USDT) has now successfully launched on the Hermez network. The Hermez network is a go-to solution that solves the problem of congestion due to the high traffic on the Ethereum network.
In recent times, users of the Ethereum network have frequently complained of the high gas fees the network and miners make its users to pay. In some instances, gas fees on the Ethereum network have been much higher than the supposed price of the asset to be transferred.
The Hermez Rollup finds a means to solve the scalability problem currently being experienced on the Ethereum network.
The Ethereum team is currently working on Ethereum 2.0 which has the intent of solving the issue of high fees and scalability on the Ethereum network. In the meantime, however, a temporary solution to that is the Hermez Rollup which may eventually serve as a lasting solution.
Why the Hermez Rollup Move is Advantageous
Hermez Rollup is founded on data availability. This ensures that vital data on the chain such as the available balance of a user as well as quantity of funds transferred from a wallet is readily available. The constant availability of these data ensures that transactions are executed and confirmed speedily on the chain.
The launching of USDT on Hermez will reduce the volume of transactions on the Ethereum network. This decrease in transaction volume will help reduce the pressure on the ETH chain in the meantime.