An Ethereum scalability solution that is premised on the zk-rollup concept has been lauched by Tether (USDT) on Hermez Network. In order to lighten the load on Ethereum network, Rollups provide a way of batching or rolling up transactions.
The state data of the rollup is always fully available on-chain, which means the key to rollups is the concept of data availability. The token balances of all user accounts on the Hermez roll-up after every transaction, is in practice known by Ethereum network. Also, in the event of malfunctions, the aforementioned knowledge can be used to constantly withdraw funds and share to their new owners.
Zk-rollups can be considered as separate “blockchains” that are entirely reliant on the layer-one network for security. Through the use of zk-SNARKs, the Hermez rollup publishes regular proofs to the Ethereum network that verify its correctness. Due to the succinct property of SNARKs, the underlying data can be almost arbitrarily large, while the proof will remain constant in size. This makes it perfect for scalability applications, as the Ethereum network is able to conclusively prove that the network is working as intended with just a fraction of the data that the rollup itself processed.
By launching USDT on Hermez, Tether hopes to alleviate the pressure on Ethereum gas fees, where the Tether contract is consistently among the highest gas users. As fees for token transfers consistently stay above $10 on Ethereum — with exchanges upping their withdrawal charges in response — the market has significantly diversified on its Tether usage.
Tether on Tron’s network has reached parity with Ethereum in terms of value transferred — a significant achievement for Tron and a source of concern for Ethereum supporters. Arguably, the most significant contributing factor to Tron’s rise is the support from a number of exchanges such as Binance, Huobi, OKEx and many others that are traditionally associated with Asia and Asian traders. Whatever users may think of Tron, few can argue with its low fees and significant acceptance