Hermez Network integrates Tether (USDT) for low-cost payments

Written by: Ali Raza
January 12, 2021
  • Tether is the first-ever token to be integrated on the Hermez network, but there are plans for more in future.
  • The integration will make batched USDT transactions possible on the Hermez network.
  • Hermez aims to reduce the cost of transactions amidst the high “gas fees” on the Ethereum network.

Decentralized project Hermez Network revealed recently that it has integrated the Tether (USDT) token into its platform. According to the network, the idea is to ensure scalable and less expensive transactions.

With the integration, the USDT has become the first to be offered live on the Hermez layer-two network. Tether has also been the dominant token when it comes to transactions over the Ethereum (ETH) network.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Tech lead at Hermez Network Jordi Baylina has commented on the integration, adding that it will be the first of many to come in the future.

 “Hermez is excited to welcome tether tokens as the first of many projects to join the layer two network.” He said.

Batched USDT transactions available

The announcement also revealed there will be batched USDT transactions on offer, according to the project lead at Hermez David Schwartz.

Last month, there was a published report from Delphi Digital, revealing that layer-two rollups represent only 1% of daily trading volumes of the decentralized exchange. However, Hermez wants to change the marginal DEX transaction volumes this year.

Also, there are more proponents of later-two adoption than ever before, especially during the high activity levels on the Ethereum network leading to expensive gas fees. Many see the layer-two protocol as a cheaper alternative.

Tip: looking for an app to invest wisely? Trade safely by signing-up with our preferred choice, eToro: visit & create account

A less expensive alternative

The Hermez team said the main aim of the integration is to provide a cheaper alternative for those who are getting fed up with “high gas fees” on the Ethereum network.

The team added that Hermes is a “zero-knowledge rollup”, and it operates as an overlay on Ethereum. Its capability of merging multiple transfers into a single transaction makes it increase the level of the transaction on the blockchain.

In recent months, the gas fees required for Ethereum transactions have been too high, which makes it very difficult for some users to carry out microtransactions.

The Hermez Network team reveals plans to make Hermez a “self-sustaining network “, by investing two-thirds of the value generated into community-based layer one projects.