The Hermez Network, a decentralized project focused on scaling the Ethereum network, is adding support for the USDT stablecoin to reduce network transaction fees.
USDT will be used to reduce the cost of payments and transfers to counter the high fees on the Ethereum network. Hermez is a “zero knowledge rollup solution” that is a layer on top of Ethereum that helps increase network bandwidth by bundling multiple transfers into a single transaction.
The gas fees required to complete transactions on Ethereum have been prohibitively high in recent months, making microtransactions difficult for many network-powered projects. Hermez Network CTO Jordi Baylina said:
“Hermez is pleased to welcome USDT as the first of many projects to join the Tier 2 network ahead of our official launch this year.”
The company hopes to create a “self-sustaining network” by reinvesting 40% of the value created in community-driven Tier 1 projects.
Recall that Ethereum developers last year proposed EIP 1559, which aims to address problems with the existing transaction fee model, forcing users to pay more than necessary. In December, information appeared about the upcoming implementation of EIP 1559.
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