Will the launch of OKCU, jointly with OKC, be the key point for Tether to break through?

2022-07-13 19:37

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OKCU delivers an optimal level of experience for novice users in terms of cost, speed, safety, and brand reputation.

As we all know, USDT has become the most mainstream Stablecoin in crypto since the beginning of the bull market cycle in 2017. Before 2018, USDT almost dominated the entire Stablecoin market, with a market share of over 90% at one time. As the crypto trading ecosystem flourishes and matures, different types of Stablecoins emerge and begin to cannibalize USDT's market share.

Nevertheless, USDT still sits at the top of the Stablecoin circuit with its first-mover advantage and word-of-mouth effect. Data shows that USDT traded $130 billion in 24 hours on May 10, accounting for 80% of the total Stablecoin volume.

In fact, USDT's leading position has been shaken by competitors, which just side reflects the sound development of the whole market. Just as ethereum's absolute leading advantage in public chain circuit has also begun to be gradually dissolved by OKC and other public chains, the development quality of cryptosphere, which is full of competition in each subdivision circuit, will definitely be significantly improved.

However, for Tether, the publisher behind USDT, the first thing to consider is to continuously increase the market share of Stablecoin products on the basis of maintaining the no. 1 position, and continuously strengthen the role and positioning of USDT as an industry value medium and standard configuration.Recently, Tether launched euro Stablecoin and gold Stablecoin, aiming to enrich the product matrix and expand the customer base coverage. In short, USDT needs to acquire a large number of users, especially active and novice users, while maintaining a solid base.

Therefore, in the increasingly diverse and open crypto world, it is a must for USDT to complement and combine the strengths of the head players in other fields. The launch of OKCU (THE OKC version of USDT, OKCU for short) on July 13 is a milestone in this process.

1. Why USDT chooses to issue based on OKC public chain?

Stablecoin, as we all know, is first released on the public chain, and then purchased by the user on the trading platform to complete the asset conversion, or the corresponding DeFi or chain game Dapp to participate in specific projects, or directly stored in the hot and cold wallet for other purposes. Therefore, when Tether selects the public chain for USDT, it should first consider the latter's ecology on the chain, security level, transaction speed and fee rate. These factors are linked to the number of original users of the public chain, and will directly determine the scale of players that USDT can reach and cover after its release. Among more than 100 public chains in the cryptosphere, Tether only issues USDT in the top 12 public chains, while USDT based on ERC-20 and TRC-20 protocols is the most used scenario at present. They correspond to Ethereum with the most developed network ecology and Wave field public chain with the lowest comprehensive procedure rate respectively.

It can be seen that USDT has strict criteria for screening the public chain of distribution. OKC public chain has obvious advantages in technical performance, transaction cost and cross-chain compatibility compared with other public chains. Specifically, OKC public chain is backed by the head cryptographic asset trading service provider OKX, which seamlessly connects with the latter's nearly ten years of blockchain technology research and development achievements. The current TPS has reached 4000+, and the security of the network system is completely predictable, which can bring users a better use experience. At the same time, OKC public chain is the only one in the cryptosphere that is EVM compatible and supports IBC protocol. This means that OKC public chain can share the ecology of ethereum and Cosmos with easier operation, which has the potential in terms of the scale of the ecosystem in the future. In addition, OKC's fee rate is more competitive in the industry. The average handling fee of a single transaction is only 0.0001 US dollars, and the handling fee of 10,000 transactions on the chain only costs 1 US dollars. In addition, most trading platforms already support THE OKC version of USDT, making transfer transactions more convenient and accessible.

It can be said that OKC version of USDT has the advantages of BOTH ERC-20 and TRC-20 protocol USDT, which will directly translate into a huge appeal to users, especially novice users who are more sensitive to cost. OKC public chain has more imagination in total user volume. USDT can therefore directly reach and reach a wider user base with the help of the OKC public chain.

Ii. What is the significance of the launch of OKCU to users and OKC public chain?

OKCU will become an important entry point for USDT to accept new users, which will undoubtedly be a powerful tool for Tether to attract more customers, reduce costs and improve efficiency. But for users, what are the specific benefits?

As we all know, on-chain processing rates depend on the overall speed and processing efficiency of the network, i.e., the more difficult a single transaction is to process, the higher the cost. Therefore, the cost of on-chain transfer of THE ERC-20 version of USDT is much higher than that of other public chains, due to the high processing fees of the slow and blocked Ethereum miners under the POW mechanism. OKC public chain relies on ouyi OKX trading platform that has withstood numerous technical tests and is constantly iterating in system research and development, ensuring the safety and speed of its underlying technology. At present, with more than 4000+ TPS and a powerful underlying network, OKC public chain can provide users with the cheapest and fastest on-chain transfer service. With the continuous development of technology research and development, the optimized system will further reduce the cost of procedures.

In short, the more frequently users use OKCU on the OKC public chain, the larger the amount, the longer the time, and the more times they use OKCU, the more preferential they will get. OKCU is also available on most trading platforms, which means users can also transfer OKCU to other trading platforms at the lowest cost. Of course, the charging rate of OKX trading platform is lower, which creates a solid three-way synergy between OKCU, OKX trading platform and OKC public chain. Keep binding to consolidate competitive advantage. So OKCU is also a tool for USDT to build a flow pool with sustained fission effects.

On the other hand, with the benefit of cost and environment, the vast number of users on the OKC chain will generate a higher willingness and motivation to participate in projects or trade and transfer, thus continuously activating the on-chain ecology and attracting other on-chain projects to migrate here. Remember, OKC is the only public chain that is compatible with both EVM virtual machines and IBC protocols, giving it the natural advantage of seamlessly embracing the Ethereum and Cosmos ecosystems. It can be seen that OKCU is also an independent, preferential and mutually beneficial link and medium for OKC public chain to continuously obtain resources outside the ecology.

It should be noted that the launch of OKCU may have implications for both partners beyond the business itself:

First, there is the possibility of further cooperation in security technology: Oui's technical strength is in a leading position in the encryption circle. Tether can take OKCU's technical solution as an idea to optimize its own underlying technical logic, or OKC public chain can directly provide technical feedback to USDT to repair some vulnerabilities and ensure the security of USDT as much as possible. Escort the safety of more than 80% of users' assets in the circle;

Second, this for the cooperation of both sides of the brand effect gain: the brand identity of both belong to the encryption circle of the super symbol, but also are novice users into the encryption circle of the first stop. The launch of OKCU can make the two brands deeply linked, increase the joint exposure opportunities in the industry and even in the mainstream financial field, so as to enhance the brand awareness and reputation of both sides, subtly and quietly enhance the loyalty of users inside and outside the circle to these two brands.

Third, preempt the huge flow pool of novice users to help Cryptod break the loop

Any industry has a high and low conversion cycle, encryption circle is not excluded, but one of the core indicators to measure whether an industry has long-term growth, is the user increment. According to Glassnode data, since the beginning of July, the number of non-zero addresses in Ethereum has reached 83,595,439, the number of addresses holding more than 0.01BTC on Ethereum is 23,432,651, and the number of addresses holding more than 0.01BTC in bitcoin network has reached 10,470,478, all hitting a new record high. According to Etherscan data, the number of unique wallet addresses on Ethereum recently exceeded 200 million. The number was 100 million on June 6, 2020, which means it doubled in 2 years.

OKCU was born in the process of Crypto industry's rapid breaking and leaping development. Whether in terms of cost, speed, safety performance and brand reputation, OKCU has shown the optimal level of use experience for novice users, and thus injected enduring vitality into the industry.

OKCU's partners OKX and Tether are indispensable leading players in the industry. At this time, it is not only out of its own business development considerations, but also a responsibility to promote the development of Crypto industry. asDirector of Financial Marketing, OKX Lennix Lai said that OKCU will allow users to benefit from both the Ethereum ecosystem and Cosmos ecosystem. More cross-chain Bridges will be added to the OKC public chain and more transaction pairs will be added to the OKX trading platform to enrich Tether's Stablecoin ecosystem. At the same time, OKX and Tether's cross-border binding and strong combination also reflects the future evolution of the crypto market in the direction of diversity and inclusiveness, thus reinforcing the basic disk of the healthy development of the entire industry.