Will Tether Migrate To The Bitcoin Blockchain With Advances In The Lightning Network?

The beneath is simply a nonstop excerpt of Marty's Bent Issue #1183: "Tether has been sent via the Lightning Network" Sign up for the newsletter here.

Above is simply a video demonstration of the archetypal ever Tether transaction implicit the Lightning Network executed by Corey Phillips from Synonym.

For those of you who are unaware, Tether is simply a US Dollar stablecoin that lives extracurricular of the incumbent fiscal strategy and is moved implicit cryptocurrency networks. Tether is centralized arsenic it controlled by a institution that keeps a reserve of USD and different assets (including bitcoin) that are reported to backmost each Tether one-to-one with a USD equivalent. The US authorities has been coming aft Tether for years arsenic they person successfully operated extracurricular the accepted strategy portion serving users astir the world. All of this is to accidental that I would not urge holding Tether unless it's perfectly indispensable to marque a transaction.

With that being said, determination is nary uncertainty that determination is important request for Tether globally arsenic individuals question to debar the short-term terms volatility of bitcoin. Many radical successful emerging economies don't person the luxury of sitting backmost and stomaching the rollercoaster terms movements successful bitcoin and opt to store immoderate of their holdings successful stablecoins truthful they tin clasp without interest of not being capable to acquisition what they privation erstwhile they spell to spend. Many bitcoiners don't similar this information but it is simply a information that should beryllium acknowledged.

What's absorbing astir Synonym's implementation of Tether connected Lightning is that it leverages the Omni Layer protocol, which is wherever Tether primitively launched. As on-chain fees accrued successful the years aft Tether launched connected Omni Layer Tether usage migrated to different chains to instrumentality vantage of their comparatively debased fees and has since been playing a crippled of blistery potato. Hopping from 1 concatenation to the next.

Is Synonym's implementation of Tether connected Lightning thing that volition propulsion Tether usage backmost to the bitcoin stack arsenic the Lightning Network presently provides sufficiently debased fees connected apical of the astir unafraid ledger successful the world? We shall see. In your Uncle Marty's opinion, it would beryllium chill to spot Tether (or wide stablecoin usage) migrate backmost to bitcoin adjacent if helium does judge that the USD is failing miserably and stablecoins service arsenic thing much than a transitional mechanics that provides a spot of volatility screen arsenic we determination from a fiat modular and a bitcoin standard.

At the precise least, Synonym's efforts are pushing the boundaries of the plan scenery connected Lightning, which is precise chill to see. As we said yesterday successful regards to BIP47 being implemented successful the Bitcoin Dev Kit, it volition beryllium absorbing to spot however the usage of OP_Return, which Omni Layer leverages, volition make earthy scalability ceilings that marque this usage lawsuit a impermanent blip successful the beingness of bitcoin.