intends to crypto exchange Bitfinex, Tether the end of the year on the Lightning Network to offer. After USDT can now be on Ethereum, Tron, EOS, and soon, Liquid shipped, this is a further step from the well-known Stable Coin. What this means for the entire crypto-Ecosystem?
Dr. Philipp Giese
At the 2. June 2019BTC$8.690,00 1.67%part Facebook Twitter LinkedIn xing mail
If you can rely on something, then that Tether and Bitfinex make it into the News. Admittedly, in the first line with controversial news on the cover of the Stable Coin, or more Controversial, but sometimes also with interesting news and plans. In the case of Bitfinex, these were the Launches of Ethfinex, EOSFinex and, most recently, Tokinex.
Also in the house Tether is The Tether underlying base was also expanded. Started as an Asset on the Omni Layer Protocol, a Bitcoin-based Settlement Layer, there exist, in the meantime, Tether Token in Ethereum and Tron-Ecosystem. Now Tether is working on EOS, and soon-to-Liquid, as well as the Lightning Network.
The Integration over the Lightning Network should be done in cooperation with the RGB-to-RGB-Protocol and by the end of the year to be completed. The RGB Protocol would establish a Standard with which other Assets except Bitcoin over the Bitcoin network can be exchanged. You are working, the corresponding Token on the Lightning Network. The Protocol could, therefore, be for the Use Case Tether optimally.
“The Lightning Network is one of the coolest things,”
compared To the crypto-news side of The Block, the CTO of Tether, Paolo Ardonio said, very enthusiastically:
I think the Lightning Network is one of the coolest things that could be involved in to where we are. We love the Lightning Network really and want to make sure that we learn and with our resources, our contribution to this important Innovation.
Actually Tether is interested for almost two years, a Lightning-Network-use. A Blog Post from September 2017 arranges the integration of the Tether in the company’s strategy: Tether want to be represented on as many Chains. The crypto-Ecosystem is distributed on a variety of projects such as Bitcoin, Ethereum, EOS and Tron and Tether would be in each of these individual facets to represent.
as far as the point of view of Tether, but what is the for the crypto-Ecosystem? In the Following, the advantages, the challenges and the risks, should be evaluated according to the spaghetti Western classic “The good, The bad and the ugly”.
The Good – Technological Innovation and Lightning-adaptation
we’ll Start with the positive points. In four points of this step could Tether as well as the Bitcoin Ecosystem to do well:
There could be a knighthood for the Lightning Network. Through this development of stock markets could put more emphasis on the Lightning Network. Here is not to say, however, that the Use Case exchanges is more likely to be covered by Liquid, as by Lightning, probably, the payments, the exchanges are, but a little to large to be on the Lightning Network shown. Exceptions, such as spark swap are not the rule here.The work of the RGB Protocol offers a great potential in the field of the tokenized Assets. Also in the area of Lightning-based applications, such Token could be helpful. With Tether is a great Use Case would be created that could attract more projects, you want to work with the RGB Protocol.The development could represent a push for the use of Bitcoin as means of payment. Now you can simply pay through the Lightning Network his coffee in Bitcoin, but must do so with a rate stable Token.With such a development, the Bitcoin could Ecosystem, its priority position compared to the younger crypto currencies under the walls. While several other projects also promise a cheap, instantaneous transactions. Here it works without a Central party, the, has, if we want to Express it in time, with a view to XRP or Stellar, between 40 and 80 percent of the Token.The Bad – Tether on the Lightning Network is still unknown
so much for the points, the delight at the News to Lightning Tether. In order for the project to “Tether designed to Lightning”, however in this positive direction, the company needs to do his homework:
Should it create a Tether, to a trustless kind of interoperability between Bitcoin Tether, Lightning Tether, Liquid-Tether, EOS-industries W, Ethereum-Tether and Tron-Tether, that would be a milestone for the entire crypto-scene. Working on it, see Atomic Swaps, Komodos multi-chain architecture, or the COMIT network, some. A real Standard is not developed yet.The technique of the RGB Protocol is still in its infancy. Still a lot needs to happen here. For large scales, if exchanges want to work with the Token, or the like, nothing can go wrong. A transparent Audit of the Tests on the Lightning Network would therefore be desirable.The Ugly – Tether as a sword of Damocles hanging over Bitcoin
Despite these challenges, there will always be some points that present a large risk. This risk applies not just to Tether or Bitfinex, but for each of these two players cooperation to the end of the project. Lightning, Liquid, Yes, even Bitcoin itself are at risk if you hang on a Tether:
Tether has. Bitcoin has a very ambivalent Use Case The problems with the cover Tethers known and probably the location is in a Multi-Chain world becoming more and more confusing. If Tether can’t provide a transparency without a middle man, could this loss of confidence not only Tether, but also all Tether cooperation projects a total damage.This is less of a point with respect to Tether, but rather with respect to the Liquid, and the Lightning Network: How will long-term be the work of the Miner is rewarded? If large transactions through Liquid and small run through the Lightning Network, will be the base Protocol of the final Settlement of the Layer, such as the impact on profitability for the Miner? Without an incentive, this will eventually leave Bitcoin, and until the next Halving, it is not even a year.
Overall, the Announcement of the Tether techno is logically interesting. The employees of the Tether and Bitfinex casts a shadow on the project. In particular, Bitfinex and Tether have at least do some homework until you can trust him completely.
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