The public chain holds USDT tight
Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
USDT is becoming the backbone of the blockchain industry.
Recently, 5 million USDT were issued on the EOS mainnet. As soon as the news came out, some people thought that this was an insignificant matter that did not deserve too much attention; others believed that EOS was about to enter a new era of stable currency.
For a seemingly trivial matter, if you contact relatively well-known public chains such as Tron and Algorand, they all start to cooperate with USDT, projecting that USDT has become the most widely used in the blockchain field.
In all fairness, for every public chain, it needs a channel to connect to the real world, and stablecoins take on such a role. At the same time, today, when DApps have not yet found their way to land, USDT, which has been adopted by major exchanges, appears to be fascinating and precious.
Since July this year, with the use and additional issuance of ERC20-USDT, the network utilization rate of Ethereum has soared to 90%, and the congestion has not been alleviated until recently. This also allows other public chains to see opportunities.
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High hopes are placed on EOS-USDT
According to Whale Alert monitoring, on October 4, a total of 5 million USDT was issued on the EOS mainnet.
It was reported that the transaction was transferred from the OMNI main network to the EOS main network, that is, after the OMNI version of USDT was destroyed, additional issuance was made.
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(In the past month, OMNI and EOS versions of USDT have been issued and destroyed: green is the EOS version, red is the OMNI version)
In fact, it is not the first time that USDT has been additionally issued on the EOS mainnet. As early as July this year, more than 250,000 USDT was issued on EOS, and there has been no news since then.
However, this large-scale additional issuance has also aroused the curiosity of investors, what is different about EOS-USDT? Some EOS investors even believe that the EOS-USDT experience will blow up ETH and OMNI.
Currently, other versions of USDT have some limitations, mainly focusing on two aspects:
One is the slow transfer speed. Taking the OMNI version as an example, because it is developed based on the Bitcoin blockchain, the processing speed on the chain is slow and the confirmation time is long, so the transfer usually takes a lot of time;
Second, transfer fees are high. OMNI version transfer requires at least 4 USDT, sometimes even up to 10 USDT, which is very uneconomical for small transactions.
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(USDT comparison of various versions)
"The advantages of EOS lie in second-level confirmation, high TPS transaction performance, and almost zero transaction costs." HelloEOS founder Zi Cen told Odaily that currently transfers in the EOS system require EOS tokens to rent CPU, RAM, and NET. System resources, although strictly speaking RAM (memory) costs, are almost negligible, so it can be said that "transfers are free".
As for the transfer speed, EOS-USDT can achieve second-level transfer, which is mainly due to high-performance TPS and fast transfer speed. Gu Ya, the founder of EOS Force, said that the actual TPS of EOS can reach 3000-4000 at present, and it can reach tens of thousands in theory; in addition, the block production speed of EOS has gradually changed from the original few minutes to the current 0.5 seconds, realizing " Second-level confirmation".
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The development dilemma of EOS-USDT
In fact, the situation is not as optimistic as mentioned above. Compared with other versions of USDT, the EOS version also has many problems.
The first of which is the cumbersome operation. Gu Ya believes that EOS needs to lease various resources when transferring money, and fill in the memo notes, "Its operating experience is not as convenient as that of Ethereum and Bitcoin, which is also the reason that affects the popularity of EOS."
Currently, the blockchain world still has a majority of novice users, and such a threshold has imperceptibly hindered the development of EOS-USDT.
In addition, compared with other public chain mainnets, the security of EOS has also been criticized. When users perform transfer operations on Ethereum and Bitcoin, they will perform "balance status verification", but this operation will not be performed on EOS.
"Everyone will think that if the account balance is not written in the blockchain, then in addition to my private key, super nodes can also move my account." Gu Ya explained,
Compared with TRON, which can be covered by the team, once stable coins such as USDT have problems on EOS, the issuer may not be able to recover the assets. USDT has not entered the EOS market for a long time because of this consideration. After EOS has been running stably for a long time, USDT will issue assets on it.
"As the demand grows, more EOS-USDT will be issued. But I dare not issue hundreds of millions or billions of dollars, because the value of the entire EOS network or the value of transmission is so much." Gu Ya said.
Furthermore, whether EOS-USDT can enter mainstream exchanges and be widely accepted and used by more people is also a big problem.
"As an exchange, OKEx will fully listen to users' opinions. For the EOS version of USDT, we will objectively evaluate its network security, performance, speed and other dimensions. If it meets the standards, we will advance as soon as possible." OKEx CEO Jay Hao express.
Currently, EOS-USDT has been listed on Bitfinex, MX, BiBox, and Newdex, among which Newdex is the most active.
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TRC20-USDT waiting for an opportunity
After the failure of the DApp Great Leap Forward, TRON has never stopped, hoping to get the blessing of USDT.
In April this year, TRON announced the issuance of the TRC20-based stablecoin USDT (TRC20-USDT). Subsequently, many exchanges, including OKEx, Huobi, and Binance, successively announced their support.
In fact, exchanges have no preference for different versions of USDT. After all, it is not complicated to list new coins from a technical point of view, and it can bring traffic to the exchange. Why not do it.
Some exchanges will even take the initiative to cheer for the new stable currency. For example, Binance launched an activity - deposit TRC20-USDT to enjoy 16% annualized income. Tron and Binance have been cooperating well, after all, the two were considered "mutual achievements" at the earliest.
With the support of many established exchanges, the development prospects of TRC20-USDT should be said to be extremely broad. Even Sun Yuchen, the founder of Tron, couldn’t help saying, “The USDT issued on the Tron blockchain will soon become the largest stable currency in the world.”
However, the life of TRC20-USDT is not as easy as imagined, and even faces a potential crisis.
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(Deposit and withdrawal are suspended, the picture comes from Huobi)
In response to this phenomenon, OKEx did not issue an announcement to explain, while Huobi only gave the word "maintenance" in an announcement in May this year (TRC20-USDT went live one month). However, after a lapse of 5 months, the transaction has not yet been opened.
Odaily consulted the two exchanges on this matter, but did not receive a relevant reply as of press time.
Some people in the industry speculate that the trading volume of TRC20-USDT on the above two exchanges may not meet the standard, so the trading was suspended.
However, TRC20-USDT deposits and withdrawals on Binance are still normal.
At present, there are only more than 5.2 million EOS-USDT, which is quite different from the OMNI (2.12 billion) and ETH (2 billion) versions. EOS-USDT still has a long way to go.
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USDT should be a tool for killer apps, not the app itself
Even though it was mentioned above that many public chains acquire USDT in order to activate the data on the chain, in fact, the stable currency is indeed an infrastructure of the public chain, serving as a bridge and transition between the blockchain network and the real world.
In this sense, it is understandable that public chains welcome stable coins such as USDT.
Before USDT entered the EOS and TRON mainnets, there was no native stablecoin like Ethereum DAI in its ecosystem.
At that time, many gambling projects on EOS could only use EOS as chips. Now with the stable currency USDT, it not only gives it a stable benchmark price, but also increases the channels for fiat currency deposits to increase payment demand.
"As an open-source blockchain underlying facility, the future of EOS should be the enterprise or application ecology running in this system. This ecology has a strong demand for value circulation and settlement, and USDT can become one of the settlement tools." Zi Cen Said, "For the EOS-based DApp ecosystem, building a smooth deposit and withdrawal channel with USDT is the real value of USDT."
Zicen believes that from the perspective of financial attributes, EOS-USDT is facing competition from other stablecoin products, whether it is in the EOS main network ecosystem or the entire digital currency ecosystem; for other applications with relatively weak financial attributes (such as the social project VOICE) ), there will not be a strong demand for EOS-USDT.
"EOS-USDT should be a tool for these killer apps, not a killer app itself," Zicen said.
The same is true for public chains such as TRON and Algorand.
The application scenarios of USDT are not limited to exchanges, there are also payment channels for tens of millions of decentralized applications, and a more promising future.
