Bitfinex incorporates Tether (USDT) into the OMG Network

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Jun 3, 2020
  • This integration will help improve the scalability of the Ethereum network.
  • Bitfinex will facilitate USDT deposits and withdrawals on the OMG Network.
  • Through this integration, traders will benefit from cut costs.

Bitfinex, a digital asset trading platform has integrated Tether (USDT) into the (OMG) Network (previously known as OmiseGo), a platform that facilitates P2P transactions in real-time. The state-of-the-art crypto trading platform unveiled this news through a press release on June 1, noting that this move aims to improve scalability on the Ethereum Network.

Per the press release, this integration will result in a reduction in the confirmation times. As such, the network will deliver faster payments and reduced fees without compromising on-chain security. Bitfinex will play the role of facilitating USDT deposits and withdrawals on the OMG Network.

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Commenting on this initiative, OMG Network’s CEO, Vansa Chatikavanij said,

“Today, we’re excited to announce the launch of the OMG Network that supports thousands of transactions per second at a third of the cost of the same transaction on Ethereum. We’re delighted to partner with Bitfinex to address these fundamental issues and drive further growth and adoption of open financial services.”

Traders set to benefit significantly from this initiative

Highlighting the key benefits of this move, Paolo Ardoino, Bitfinex’s CTO said,

“At Bitfinex we are committed to driving innovation and improvements to our service to better support our customers. By migrating USDT value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network. This is good for Bitfinex and our customers, and the whole Ethereum ecosystem.”

According to the publication, the cost of transferring USDT as an ERC20 token would require a minimum of 0.001 ETH as miner fee per transaction. Plasma would also allow traders to send numerous transactions with one fee. Per Ardoino, this feature would let traders react to trading opportunities much quickly. As a result, they will be in a position to take advantage of arbitrage efficiently between exchanges as the network continues growing.

Scaling the Ethereum network to avert congestion

Per the press release, the Ethereum network is an effective way of transferring funds. However, it is susceptible to network congestion. For instance, the most recent case of congestion came after ETH plunged from £190 to £85. Due to the selling pressure, the average network waiting time increased from 15 seconds to 44 minutes.

Through scaling Ethereum, Bitfinex and the OMG Network believe that they will help cut costs and enhance the performance for all services and applications that run on the network. Consequently, this will help improve the exchange of tokens, which forms the largest percentage of Ethereum usage.

Do you think the integration of USDT into the OMG Network will help Ethereum avert congestion? Share your thoughts in the comment section below.

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