Tether’s integration with the Solana blockchain aims to help support a number of projects in DeFi, blockchain games and Web 3.0.
What’s the purpose?
Stablecoin issuer Tether announced the launch of USDT tokens on the Solana (SOL) blockchain on March 9. Tether’s chief technical officer said that integration with the layer 1 blockchain promises to support a wide range of projects in Decentralized Finance or DeFi, industry and other Web 3.0.
As previously reported, Solana is cited as a rival to Ethereum in the hopes of attracting DeFi actors as it awaits all the benefits of Eth2 to finally take effect.
According to Tether, Solana will enable users to process USDT at speeds higher than 50,000 transactions per second. He also claims that transaction fees can be as low as $ 0.00001 each, and this lower-cost, higher-speed alternative to Ethereum will provide a boost to new applications and projects in the DeFi space. Tether has already integrated with multiple blockchains between Algorand, EOS, Liquid Network, Omni and Tron as well as Ethereum.
Among the projects recently built on Solana is Serum, a decentralized derivatives exchange. In a recent interview with Defiant Podcast host Camila Russo, FTX exchange co-founder and CEO Sam Bankman-Fried said Serum chose Solana over Ethereum because of its superior speed and infrastructure. “We need a blockchain that is millions of times faster than Ethereum,” he said.
As rival blockchains continue to proliferate to meet the needs of the growing DeFi industry, many industry actors ultimately believe the project is Ethereum 2.0.
Meanwhile, Tether has been integrated with second-tier networks like Hermez, which have become increasingly popular in times of rising gas fees in the Ethereum network.