Following the official announcement from USD Coin (USDC) issuer Circle Pay, stablecoin giant Tether announced the upcoming Merge upgrade of Ethereum and its switch to a blockchain based on a Proof of Stake (PoS) consensus mechanism. We have officially confirmed that we will support it. .
The announcement came on the same day as its stablecoin competitor, who promised to only support the highly anticipated Ethereum upgrade.
In a statement on Tuesday, Tether labeled the merge one of the “most significant moments in blockchain history” and outlined that it will operate according to Ethereum’s upgrade schedule, currently scheduled for September 19th. did.
“To avoid disruption to the community, it is important for Tether to ensure that the move to POS does not become a weapon that causes chaos and harm within the ecosystem, especially when using tokens in DeFi projects and platforms. I think.”
“Tether will closely track the progress and preparations for this event and support POS Ethereum in line with the official schedule. believes a smooth transition is essential,” added Tether.
The official statement was just released today, but the stablecoin issuer’s chief technology officer, Paolo Ardoino, has already indicated that it plans to support post-merger Eth2 in July.
I was told that they plan to support ETH2.
— Paolo Ardoino (@paoloardoino) July 31, 2022
According to CoinGecko, Tether (USDT) is currently the largest stablecoin in cryptocurrency with a total market capitalization of $66.6 billion, while USDC is relatively far behind at $54.1 billion. Both stablecoins have a large circulating supply on Ethereum’s current Proof of Work (PoW) blockchain, with USDT at his $32.3 billion and USDC at his $45.1 billion at the time of writing. The dollar occupies the top spot.
Given the size of these stablecoins and their dominance in the stablecoin market, this display of support in this example is not just for the Ethereum, Tether, and USDcoin ecosystems, but for the broader crypto market as a whole. should lead to a smooth transition.
Related: Institutions Flocking to Ethereum for 7 Straight Weeks as Merge Approaches: Report
However, as Ethereum co-founder Vitalik Buterin recently warned, centralized entities such as Tether and Circle are not what the Ethereum community has, but forked chains of their own liking. Their power could cause problems in a future Ethereum hard fork, as they can choose to utilize . Proposed.
“In the future, I think it will definitely be more of a concern. Fundamentally, the USDC’s decision on which chain to consider Ethereum is a key determinant of future controversial hard forks. The fact that it can become
The issuer of the stablecoin (Circle/Tether) controls the selection of Ethereum forks.
What if the state presses Circle to support a fork that violates the “Ys Community Social Contract”? https://t.co/dP7ZPFiJ0u
— Brandon Quittem (@Bquittem) August 6, 2022
This week, Ethereum will conduct a final merge trial via the Goerli testnet. If all goes according to plan, the September 19th merge date is unlikely to happen. delay.