The issuer of Stablecoin, Tether, announced that USDT tokens will be launched today, March 9, on the Solana (SOL) blockchain network. Speaking to Cointelegraph, Tether’s chief technical officer said that Layer 1 blockchain integration promises to support a wide range of projects in the decentralized finance sector, or DeFi, and other Web 3.0 activities.
As previously reported, Solana presents itself as an Ethereum competitor, hoping to attract DeFi players to their network while they wait for the benefits of Eth2 to come true.
According to Tether, Solana will enable users to transact USDT at speeds in excess of 50,000 transactions per second. It also states that transaction fees could be as low as $ 0.00001 each and that this lower cost and higher speed alternative to Ethereum will provide a boost to new applications and projects in the DeFi space. Tether has already integrated with multiple blockchain networks alongside Ethereum, including Algorand, EOS, Liquid Network, Omni, and Tron.
Among the projects that have recently been built on Solana is Serum, a decentralized derivatives exchange. In a recent interview with Camila russo, host of the podcast Defiant, the co-founder and CEO of the FTX exchange, Sam Bankman-Fried, said Serum had chosen Solana over Ethereum due to its superior speed and infrastructure. “We need a blockchain network a million times faster than Ethereum”, He said.
Although competing blockchain networks continue to proliferate to meet the needs of the growing DeFi sector, many industry players believe that ultimately Ethereum 2.0. has key benefits for decentralized applications, including Jon Jordan of DappRadar.
In the meantime, Tether has been integrated with second layer networks like Hermez, which have become increasingly popular during periods when gas rates have skyrocketed on the Ethereum network.