In this regard, Tether’s CTO (chief technical officer) stated that the link to layer 1 blockchain will pave way for the creation of a wide range of ventures in the Decentralized Finance (DeFi) industry and other Web 3.0 activities.
Solana is pitted as the competitor to Ethereum (ETH), with the aim of luring DeFi players into its ecosystem as they remain on sidelines for realizing the complete advantages of Eth2.
As per Tether, Solana will facilitate users to deal with USDT at speeds greater than 50,000 transactions per second. More importantly, fee per transaction could be as low as $0.00001 and this cost-effective, high speed substitute to Ethereum will pave way for an increase in a plethora of new applications and ventures in the DeFi domain.
Notably, the stablecoin Tether has been already integrated with numerous blockchains, in addition to Ethereum, EOS, Algorand, Liquid network, Tron and Omni.
In recent times, among the ventures that has gone live with Solana as the underlying blockchain is Serum, a decentralized derivatives exchange. While speaking with Camila Russo, who hosts the Defiant Podcast, Sam Bankman-Fried, CEO and co-founder of FTX exchange, stated that Serum had selected Solana over Ethereum for its exceptional processing speed and framework. “We need [a blockchain], like, a million times faster than Ethereum.”
Even though the cryptocurrency sector continues to witness a plethora of blockchains that promise to offer an improved experience to the DeFi industry, several industry players trust that eventually Ethereum 2.0 will outclass them as it offers several advantages for decentralized apps such as DappRadar’s Jon Jordan.
In the meantime, Tether has linked with layer-two platforms, for example Hermez, that have turned out to be very popular alternative for Ethereum as transaction (gas fees) charges have skyrocketed in the last few months.