Tether Limited Inc., the parent company of the USDT stablecoin, has announced a new development to its network as it announced that minting USDT tokens is now possible on the Polkadot blockchain.
USDT Goes Live on Polkadot
The latest development would see the largest stablecoin by market cap be minted on the Polkadot network.
Tether launched on Polkadot providing a stable currency to move in and out of the network.
“Polkadot is on a trajectory of growth and evolution this year and we believe Tether's addition will be essential in helping it continue to thrive.” – @paoloardoino, CTO at @Tether_to. https://t.co/3wZ55Bk6u7
— Polkadot (@Polkadot) September 23, 2022
The move is an unprecedented achievement as it means that the native USDT tokens can be minted on the Polkadot blockchain.
Appchains such as Acala Network, Centrifuge, and other general-purpose EVM chains such as Moonbeam Network and Astar Network could now incorporate native USDT.
Tether, the market’s leading stablecoin, has expanded its reach in decentralized ecosystems by moving to the Polkadot network. Polkadot, a complete Web3 ecosystem, provides a multi-chain application environment, enabling cross-chain records and cross-chain information processing.
Polkadot allows different blockchains to connect and transact through the Polkadot Relay Chain, facilitating the development of decentralized apps, systems, and organizations.
A total of 11 different networks now host the USDT stablecoins. They include Avalanche, Ethereum, Kusama, Solana, EOS, Liquid Network, Algorand, NEAR, Tron, Omni, and the Standard Ledger Protocol of Bitcoin Cash.
Over the past week, the on-chain analytic firm Santiment described Polkadot as one of the leading blockchain networks in developmental activities. This is still a significant accomplishment for the network, which continues to thrive periodically by implementing upgrades.
Polkadot’s Scaling Drive
Many scalability issues have hampered other blockchains, resulting in high transaction fees and slow transaction speeds due to congested networks. Polkadot’s network plans to address this scalability issue by implementing its parachain model, which allows borderless, rapid, and decentralized transactions.
By adopting Parachain’s ability to process its transactions, Polkadot seeks to decrease transaction clutter that usually piles up on its network.
Moreover, parachains on the Polkadot blockchain are optimized for specific use cases. Meanwhile, Polkadot’s parachains are scalable, allowing them to handle most of the system’s computation.
As a result, this addresses the scalability problems that arise in other blockchains, like Ethereum. In addition, this improves the centralization issues found n some networks like Binance Smart Chain (BSC).
Furthermore, parachains, unlike others, are their own independent protocols. Each chain has its own structure, users, and governance framework that runs its ledger and introduces its transactions to its blockchain.
What’s more, the Polkadot network includes bridge parachains for two-way interoperability. Bridges enable trustless exchanges between self-governing blockchains and the Polkadot network, allowing for proper connectivity.
The Polkadot Chain is distinct from other leading blockchains due to its success in scaling its network via sharding. It is worth noting that sharding is when a network facilitates several transactions at the same time.
Throughput increases significantly as the number of shards grows, while cross-chain functionality enhances asset transfer and data among parachains.
Polkadot’s scaling solution relies heavily on its parachain infrastructure. Meanwhile, scalability is also provided by countless natively connected chains and bridges to external protocols.