Tether is an interesting project and USDT is also widely used. At present, the stable currency USDT market value is about 7 billion US dollars, about 4 billion US dollars. But the most interesting part is that the USDT is distributed in several blockchains.
“Tether is working with the exchange to convert some USDT cold wallets from Omni to ERC20,” Tello’s technical director Paolo Ardoino explained to the public on August 5. More than half of USDT is currently using the Omni system, with more than $1.55 billion for the ERC20 system, $350 million for the EOS and Tron chains, and USDT for the Algorand network.
Why should USDT migrate from the original Omni system on the BTC network to the ETH network or other network? The main reason is the transaction cost.
The USDT is initially stored at the Bitcoin address, and each time a transfer is made, the bitcoin must be paid at the miner's expense. Due to the congestion of BTC, the transaction cost is relatively high, the current average cost is much higher than 1 US dollar, recently reached 4-5 US dollars per transaction, and the transaction speed is very slow, which can not meet the demand of today's encryption trading market. So the USDT needs to switch to another blockchain. The cost of ETH is slightly cheaper, but due to ETH congestion, the cost of sending ERC20 tokens is also increasing, and ETH selection may be a temporary transition.
