- Tether (USDT) is launched on Hermez Network.
- The Level 2 network runs on the Ethereum blockchain and aims to reduce gas fees.
- Hermez aims to drive its mission to support community-centric projects in the future.
Hermez is a decentralized zero-knowledge rollup (zk-rollup). It’s a system that runs on the Ethereum blockchain. Users could see more than a 90% drop in gas costs.
It uses a technique where it bundles up hundreds of transfers and ships them as one. This could free up space on the blockchain. Thus, supposedly resulting in slashed gas fees.
Hermez keeps track of its bundles with a cryptography method called zero-knowledge proofs. It runs off-chain calculations to provide the Ethereum network with valid proof.
Paolo Ardoino, the CTO of Tether Operations Limited, was happy to announce the launch. He hopes the alliance will bring more modern De-Fi services.
Additionally, he said users will benefit from a system aiming to combat Ethereum’s scalability issue.
Likewise, Hemez Network’s Tech Lead, Jordi Baylina welcomed Tether as the first of many to join their network. Hermez is looking forward to bringing more assets onto its network.
Meanwhile, Hermez is hoping to use its novel Proof-of-Donation system to drive communal projects. Their mission is to donate up to 40% of their funds to support such projects.
With the launch of Ethereum 2.0, Level 2 network solutions could prove a boon to further reducing gas fees.