We’re delighted to partner with Bitfinex to address blockchain’s scalability issues and drive further growth and adoption of open financial services.
The integration of USDt onto the OMG Network will reduce confirmation times, make payments faster, and lowers transaction costs at the same level of security as Ethereum. The Bitfinex platform will enable USDt deposits and withdrawals on the OMG Network.
“Today, we’re excited to announce the launch of the OMG Network that supports thousands of transactions per second and reduces transaction costs to a third of Ethereum,” said Vansa Chatikavanij, CEO at OMG Network. “We’re delighted to partner with Bitfinex to address blockchain’s scalability issues and drive further growth and adoption of open financial services.”
"At Bitfinex we are committed to improving our service to better support our customers,” said Paolo Ardoino, CTO at Bitfinex. “By migrating USDt value transfers to the OMG Network, we save costs, drive performance improvements, and relieve pressure on the root chain. This is good for Bitfinex, our users, and the entire Ethereum ecosystem."
Transferring USDt as an ERC20 token costs a minimum miner fee of 0.001 Ethereum per transaction. OMG Network’s More Viable Plasma solution batches numerous transactions in one block and charges one predictable, low-cost fee. “This allows traders to react faster to trading opportunities and more efficiently arbitrage between exchanges as the network grows,” said Ardoino.
The Ethereum blockchain is a valuable but limited resource, which, under heavy traffic, is vulnerable to severe network congestion. As each block has only a finite space available to users, total transaction throughput is capped at approximately 12 TPS. When transaction demand exceeds 12 TPS, settlement times increase and gas costs can rise significantly.
One such extreme congestion event occurred in March this year when the price of Ethereum crashed from $240 to $107, liquidating more than $10 billion from the market. The massive spike in demand from users looking to trade in response to the volatile price swings resulted in average network waiting times rising from 15 seconds to 44 minutes.
Token exchange is the largest category of usage for Ethereum. With its growing dominance and success, USDt transactions now consume more gas than the next 10 biggest protocols and applications combined. Scaling Ethereum is very much a ‘today’ problem and the OMG Network tackles the issue head-on, benefitting all the services and applications built on the Ethereum Network.
USDt’s total market capitalization has more than quadrupled from about $2 billion in February 2019 to reach $9 billion. Tether works with Algorand, Ethereum, EOS, Liquid Network, Omni, and Tron. Tether is driven to support and empower growing ventures and innovation in the blockchain space.
About OMG Network
Established in 2017 under the brand name OmiseGO, the rebranded OMG Network is a subsidiary of SYNQA. Our mission is to enable open financial services that are fast, cheap, and secure. The OMG Network is the quickest and most affordable way to transfer ETH and ERC20 tokens globally and without restrictions.
More information can be found on OMG.network.
Founded in 2012, Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market, and financed trading for a wide selection of digital assets. Bitfinex's strategy focuses on providing unparalleled support, tools, and innovation for professional traders and liquidity providers around the world. Visit www.bitfinex.com to learn more.
Senior PR Manager