Tether Rejoins Bitcoin: The Rise Of Lightning Network Dominance Begins!

(MENAFN- crypto Breaking)

Today, at the Plan B Conference in El Salvador, Tether made a significant announcement long anticipated by many. The USDT stablecoin is rejoining the Bitcoin blockchain through Taproot Assets.

The upcoming phase will involve Tether minting this asset, which will initially be accessible on Bitfinex .

Tether's re-entry into the Bitcoin sphere using Taproot Assets is far from trivial; it represents a strategic shift that could usher in a transformative phase for both Bitcoin 's Lightning Network (LN) and the entire stablecoin ecosystem.

With USDT now returning to the Bitcoin network in a manner that integrates with Lightning, users can benefit from extremely fast and low-cost transactions. This is crucial for the practical application of stablecoins in daily transactions and remittances, especially in areas where financial services are scarce or expensive.

However, the Lightning Network may struggle to manage traffic and user volume compared to rival chains like Solana and Tron. Moreover, the capability of the Lightning Network to handle a surge in stablecoin transactions without sacrificing performance or leading to node operation centralization due to increased liquidity requirements is a concern.

The key to addressing this challenge lies in one essential element: Robust infrastructure – this is where Joltz becomes relevant.

Also featured at the Plan B Conference, Joltz's early investment in Taproot Assets seems to have been a well-timed decision. Joltz brings innovative advancements to the Bitcoin infrastructure ecosystem with its leading-edge features. As one of the few self-custodial mobile wallets that support Taproot Assets, Joltz empowers users to handle multi-asset payments and swaps directly on Bitcoin . In addition to the standalone wallet , Joltz provides a software development kit (SDK) that enables other developers to integrate support for these assets and Bitcoin on-chain and Lightning transactions more seamlessly and efficiently. This toolkit is geared towards enhancing the services of existing crypto wallets, stablecoin platforms, asset issuers, fintechs, payment applications, and exchanges while minimizing development expenses and time. Developers seeking early access to the Joltz SDK can register here .

Much like the commitment made on Day 1 to free Ross, we should advocate for broad support of USDT from Day 1, accompanied by an excellent user experience. Joltz is poised to fulfill that promise, potentially setting a precedent for others to recognize the substantial opportunities that lie ahead for Bitcoin .

So, why should stablecoins find a home on Bitcoin ?

The recent boom in meme coin activity on Solana has caused significant network strain, resulting in skyrocketing transaction fees. At the end of 2024, Solana 's daily transaction fee revenue approached $78 million due to the meme coin frenzy, which was not without its drawbacks: users faced increased fees and intermittent network congestion, complicating their experience. Similarly, Tron has encountered challenges with its transaction costs, reportedly exceeding $5 million in daily fee revenue, which highlights its centrality in stablecoin transactions but also the strain on its heavily centralized network. We are keen on capturing those fees on Bitcoin , benefiting miners and routing operators.

The Lightning Network offers remarkable scalability, allowing transactions to occur off-chain and only settling on Bitcoin when absolutely necessary. This structured approach serves as a stark contrast to the scalability issues plaguing singular layer blockchains like Solana and Tron.

Moreover, with the Lightning Network, there exists the potential for new financial products. By locking Bitcoin within Lightning channels, opportunities for yield generation become available, like liquidity provision (leasing) or even more sophisticated financial instruments associated with routing. This can provide users with fresh avenues for generating NATIVE Bitcoin YIELDS based on sound principles. (For additional insights, check out my latest report on Bitcoin Stablecoins.)

The announcement made today serves as a vital reminder in the crypto landscape: while chains like Solana and Tron have made advancements in transaction speed and cost, achieving true scalability requires substantial investment in infrastructure to maintain decentralization and ensure trustless exits. Ultimately, what's the alternative? Centralized chains may lead currently in the Stablecoin race, but Bitcoin will endure.

Tether's return into Bitcoin through Taproot Assets indicates a strong belief in Bitcoin 's developing capabilities. It illustrates the ongoing innovation present in the Bitcoin ecosystem, illustrating how foundational technologies like Bitcoin can adapt and grow in response to evolving needs, regardless of the criticisms from high-time preference voices focused more on distractions rather than genuine utility (meow).

This move holds the potential to pave the way for future innovations in decentralized finance (DeFi) on Bitcoin (BTCfi), reshaping our understanding of Bitcoin as the ultimate settlement layer for various economic activities.

Welcome back, Tether! <3

This article represents a Take . The views contained herein are solely those of the author and do not necessarily reflect the positions held by BTC Inc or Bitcoin Magazine.

Discussions may arise regarding topics or companies that are part of the investment portfolio of the author's firm (UTXO Management ). The opinions expressed are independent and do not reflect those of the author's employer or its affiliates. The author has not received any financial compensation for these Takes. Readers are encouraged to conduct their own research before making any financial decisions.

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