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Earlier today at Plan B conference in El Salvador, Tether published a message that has been in the process. Usdt is back on Bitcoin using taproot assets.
The next steps will be for tether to mint the asset, which will originally be available via BitFinex.
Tether’s return to the Bitcoin ecosystem via taproot assets is not just a simple re-journey; It is a strategic turn that could report a new era for both Bitcoin’s Lightning Network (LN) and the wider StableCoin landscape.
With Usdt, which now returns to the Bitcoin network in a way that is also interoperable with lightning (it has no direct influence on the Bitcoin asset-teet from the fact that it is massive bullish), users can enjoy the benefits of almost instant, low- Fee transactions that are critical for the practical use of stablecoins in everyday trade or transfers. Integration is especially advantageous in regions where financial infrastructure is either missing or insurmountable animal.
That said, Lightning Network is probably not able to handle the activity and the user current occurs on competing chains like Solana or Tron. There is also the question of how well the lightning network will handle the increased load of stablecoin transactions without breaking down performance or leading to centralization of node operations due to the need for higher liquidity.
The answer to this lies in a simple variable: Good infrastructure – And this is where Joltz comes in.
Joltz’s early efforts on Taproot assets now look present at Plan B conference. Joltz introduces some notable progress in the Bitcoin infrastructure ecosystem with its unique features. It is one of the only self-defense mobile wallets that supports taproot assets that allow users to manage payments with multiple assets and swaps directly on Bitcoin. In addition to the independent wallet, Joltz offers a software development set (SDK) that could be integrated by other developers, reducing the time and cost associated with adding support to these assets, as well as Bitcoin On-Chain and lightning transactions. This can be advantageous for existing crypto cartoons, asset issuers, stableCOin platforms, fintechs, payment apps and exchanges that offer them a way to improve their services with less development efforts. Developers who want early access to Joltz SDK can sign up here.
Similar to how Trump promised to free Ross on Day 1, we should demand that USDT be supported everywhere on day 1 with good UX. Joltz will deliver it – hopefully the way for others will see the extent of the opportunity in front of Bitcoin.
Now: Why should you even have stableecoins on Bitcoin?
The recent increase in Meme Coin activity at Solana has led to significant network overload and pushed transaction fees for registration of heights. Solana’s daily fee revenue hit nearly $ 78 million at the end of 2024, a direct result of Meme Coin Boom, but this came at the expense of higher transaction fees and occasional network stoping that challenged the user experience. Similarly, Tron has faced his own challenges with transaction fees. Tron’s daily fee income is reported to surpass $ 5 million, reflecting its significant role in handling stablecoin transactions, but also highlights the pressure on the highly centralized network. We want these fees on Bitcoin, for miners and routing operators.
LN offers almost infinite scalability by letting transactions occur off-chain, only settlement on Bitcoin when needed. This approach contrasts sharply with the scalability struggles for single -layer blockchains such as Solana and Tron.
With LN, there is also the potential for new financial products. Locking of Bitcoin in lightning channels can open yield -generating possibilities such as liquidity provision (leasing) or even more complex financial instruments related to routing, giving users new ways of generating Native Bitcoin yields Not based on questionable practice. (See also mine Recent report On Bitcoin StableCecoins.?
The message today emphasizes a wider lesson in the crypto area: While specific chains such as Solana and Tron have made steps in speed and cost, real scalability requires time and a lot of investments in infrastructure to guarantee decentralization and trustless exit: Otherwise what is the point? Centralized chains lead on stableecoins are temporary – Bitcoin is forever.
Tether’s return to Bitcoin through Taproot assets means a confidence in Bitcoin’s evolving capacity. It is a testimony to the innovation in the Bitcoin space and a reminder of how basic technologies like Bitcoin can adapt and expand to meet new requirements despite having a festive preference critics of LN who focused on chasing distractions instead for real tools (Meow).
This step could very well set the scene for further innovations in decentralized funding (DEFI) on Bitcoin (BTCFI) and reshape how we think about Bitcoin as the ultimate settlement layer for all types of economic activity.
Welcome back tether! <3
This article is one Take. Opinions expressed are completely the author’s and does not necessarily reflect BTC Inc or Bitcoin magazine.
Articles Guillaume in particular may discuss topics or companies that are part of his company’s investment portfolio (UTXO management). The expressed views are solely his own and do not represent the statements of his employer or its affiliated companies. He receives no financial compensation for these taking. Readers should not consider this content as financial advice or endorsement of a particular business or investment. Always do your own research before making financial decisions.