Tether, the renowned company responsible for pioneering the largest stablecoin in terms of market capitalization, has taken a significant step by officially discontinuing support for three distinct blockchains.
As of the recent Thursday, the issuer of this stablecoin has ceased the creation of USDT tokens on three specific blockchains: Kusama (KSM), Bitcoin Cash’s (BCH) Simple Ledger Protocol (SLP), and Omni Layer (OMNI).
The decision-making process at Tether underscores the importance of community interest when it comes to selecting which blockchains to integrate with for the distribution of USDT.
In a statement, Tether conveyed their meticulous approach: “We conduct comprehensive evaluations that encompass a range of factors such as security, customer assistance, compliance, and regulatory oversight. Our primary objective is to ensure the chosen blockchain’s security, usability, and long-term viability. If a particular blockchain fails to gain substantial traction over an extended period and displays no signs of recovering in terms of usage indicators, continuing support becomes inefficient and potentially jeopardizes security and oversight.”
Kusama, recognized as the canary test network for Polkadot’s (DOT) interoperability blockchain, holds a crucial position in the blockchain ecosystem. Bitcoin Cash, a noteworthy fork of the original Bitcoin (BTC), introduces a novel perspective to the landscape, and the Simple Ledger Protocol (SLP) serves as an innovative token system within the Bitcoin Cash network.
Delving into history, the Omni Layer, which made its debut in 2013, emerged as one of the pioneering sidechain protocols for Bitcoin. It aimed to introduce enhanced functionalities to the cryptocurrency domain, being the inaugural platform on which Tether introduced USDT tokens.
The decision to discontinue support for Omni was particularly challenging for Tether’s Chief Technology Officer, Paolo Ardoino. Reflecting on this, he noted, “This decision has not been made lightly, especially given the historical significance of the Omni Layer. It was the foundation for Tether USDT’s inception back in 2014.”
Over time, the Omni Layer encountered its share of hurdles, primarily stemming from the limited availability of popular tokens and the emergence of USDT on various other blockchains. This dynamic prompted many exchanges to lean towards alternative transport layers, leading to a decline in the utilization of USDT on the Omni Layer within the Bitcoin ecosystem.
As a principled organization, Tether remains steadfast in its commitment to consistency, transparency, and adherence to open processes, even when such a stance necessitates making challenging choices. This commitment underscores the company’s dedication to the blockchain community and its pursuit of advancing the broader ecosystem.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.