The first Tether / stablecoin transaction in a Lightning channel! \ stacker news ~bitcoin

The first Tether / stablecoin transaction in a Lightning channel!www.youtube.com/watch?v=MfaqYeyake8

422 sats \ 22 comments \ @FatBear 22 Mar 2022 bitcoin

43 sats \ 0 replies \ @FatBear OP 22 Mar 2022

Really cool work from the Synonym team!

38 sats \ 0 replies \ @cozy 23 Mar 2022

Incredible stuff, honestly. Amazing work. Pumped for the future. As much hate as Tether gets, it's solving problems that existing stablecoins (fiat) were unwilling or incapable of solving--bringing US financial privileges to the masses. Hope this helps a lot of people who need it!

20 sats \ 2 replies \ @kevin 23 Mar 2022

I hate to be a party pooper here but is this really the "real" Bitcoin Lightning network? I was under the impression that OmniBolt is a separate thing 🤔

45 sats \ 1 reply \ @supertestnet 23 Mar 2022

The Omnibolt Daemon (OBD) is definitely a fork of LND and it's a btc-compatible fork, which means, the bitcoins in OBD are on the real lightning network, you can open channels to any other lightning user without them needing to run your fork, and you can send them bitcoins over those channels. But the USDTs in OBD require something like a parallel network, with its own set of channels. So I would say that's two networks, the "real" lightning network with bitcoins on it and an "omni" lightning network with omni tokens on it, one of which is USDT.

On the other hand, altcoins have been "on the lightning network" since day 1 (namely, Litecoin) and it is possible to use submarine swaps to transfer bitcoins over that network and "back into" the real lightning network. The same is now true of USDT. Which means the two networks are connected. And if they are connected, are they really just one big network or they still two separate ones? I'm not sure how to answer that but I hope this explanation helps.

0 sats \ 0 replies \ @kevin 24 Mar 2022

Excellent clarification! Thanks!

53 sats \ 0 replies \ @P2P_bitcoin 23 Mar 2022

Fiat Lightning isn't exciting.

https://twitter.com/notgrubles/status/1506444924035682320

64 sats \ 2 replies \ @DarthCoin 23 Mar 2022

stablecoins are just oxymorons... And this in particular is just another way Bitfinex is trying to fool people into "give me your valuable BTC and I will give you these shity tether, hey look are working even on LN!" Only a shitcoiner will do that.

33 sats \ 1 reply \ @shyfire 23 Mar 2022

I agree. Besides, a major selling point of Bitcoin is an escape hatch from a government's monetary policy. Using fiat on top of BTC negates this benefit and still makes you vulnerable to a government's irresponsible monetary policy. Unless I'm missing something, this really doesn't excite me.

0 sats \ 0 replies \ @0268486dc4 25 Mar 2022

I think the original purpose of tether was for arbitrage trading. It wouldn't make sense to move bitcoin from one exchange to another if the purpose is to arbitrage bitcoin. This would give a way for arbitrage traders to step out of bitcoin into the dollar for transfer to another exchange.

116 sats \ 7 replies \ @cointastical 22 Mar 2022

After years of effort by the Omni, OmniBOLT, and Synonym teams, Corey Phillips demonstrates the first Lightning token channel and transaction.

Here is this historical moment on the blockchain: https://mempool.space/address/3N5YQzhGGaJMbbVSC2KTWZaqMVtZmvyoQT

Look for our wallet, which supports this tech, in Q2 2022.

Learn more at https://synonym.to

2 sats \ 6 replies \ @cointastical 22 Mar 2022

Sending Tether USDt on Lightning network ⚡ will have lower transaction costs than you would find when sending USDt on any of these blockchains:

Bitcoin (Omni)
Liquid
Ethereum (ERC-20)
Tron (TRC-20)
Solana
Avalanche
Algorand
EOS
Bitcoin Cash (SLP)

27 sats \ 0 replies \ @BlokchainB 23 Mar 2022

Wow

9 sats \ 4 replies \ @cointastical 23 Mar 2022

I see @nout chimed in:

You could have a non-custodial lightning wallet where you can seamlessly hold either USD balance or BTC balance and easily transfer between the two in seconds or pay any invoice (BTC or USD) So like non-custodial @Strike (people outside of US will know why this is so important)

https://twitter.com/3d_nout/status/1506402567982489601

20 sats \ 0 replies \ @nout 23 Mar 2022

To be clear I'm not 100% sure that that's how it can work. I hope it does though.

My guess is that the transfer between balances won't be as seamless (unless the wallet integrates with some exchange). Paying with either balance should be afaik smooth.

3 sats \ 2 replies \ @cointastical 23 Mar 2022

So, this Tether USDt on Lightning network ⚡️ will be like a USD payment rail, but borderless, No-KYC, instant, and will incur only ultra-low network transaction fees. And have the same level of financial privacy that you get with #bitcoin on Lighting network. 🔥🔥

0 sats \ 1 reply \ @cointastical 23 Mar 2022

Tether ❤️ LN ⚡

https://twitter.com/Tether_to/status/1506367713882558470

8 sats \ 0 replies \ @cointastical 23 Mar 2022

The Tweet from Synonym announcing this is:

Witness the first #Tether stablecoin transaction in a ⚡️Lightning channel!

@OmniBOLT @Omni_Layer @Tether_to $USDT @Synonym_to

https://twitter.com/Synonym_to/status/1506388477268660238

5 sats \ 0 replies \ @k00b 23 Mar 2022

Even if you don't like Tether or fiat, the market, particularly underprivileged ones, want something like this clearly. It creates a much lower friction ramp from BTC into the fiat world and vice versa. It's also much easier to imagine my blue pill corner store integrating with some kind of stablecoin service than outright accepting Bitcoin.

I don't have the faintest clue how this works in detail though. What's the path to understanding it? Grokking Omni tether?

5 sats \ 0 replies \ @2big2fail 23 Mar 2022

the USgov and Tether are undeniably in a mutualistic relationship.

5 sats \ 0 replies \ @RuouAn 23 Mar 2022 freebie

Great . Hope other Bitcoin based stablecoin can mint and tranfer on Lightning Bitcoin network

1 sat \ 1 reply \ @cryptocoin 25 Mar 2022

Here's an article on this:

Synonym’s current implementation relies on the Omni Layer, a decentralized asset protocol for Bitcoin, and OmniBOLT, which ports that layer’s functionality to Lightning channels.

An Omni transaction is a Bitcoin transaction with extra metadata, meaning it doesn’t require a separate blockchain that alternative protocols for asset issuance commonly leverage.

There is still much work to be done on Omni and OmniBOLT to consider the token-on-Lightning functionality ready to be released.

Synonym plans to release a mobile wallet and a browser extension wallet in the coming months that will support tokens on Lightning and Slashtags, a web-of-trust-like protocol the company teased last year.

USDT Pilot Brings Tokens To Bitcoin’s Lightning Network https://bitcoinmagazine.com/business/usdt-pilot-brings-tokens-to-bitcoin-lightning

1 sat \ 0 replies \ @cryptocoin 26 Mar 2022

And another article:

The benefits of using USDT on Lightning include lower transaction costs, increased privacy, and speed. Stablecoins on the Lightning network have the potential to empower circular economies, where Lightning is the primary means of payment and alternatives are no longer needed.

USDT is Transacted Using the Lightning Network https://www.btctimes.com/news/usdt-is-transacted-using-the-lightning-network