Hydro Labs is proud to announce a new partnership with plasma infrastructure provider OmiseGO. This partnership will ensure that Hydro Pay transactions are no longer bottlenecked by Ethereum scalability issues. Users of the peer-to-peer (P2P) payments app can make instant transactions even when the Ethereum network is congested.
For OmiseGo, the partnership brings about the first real world use of their plasma chain technology for day-to-day payments!
Scalability has been a long standing problem for Ethereum as most famously shown during the Crypto Kitties craze of 2017, and more recently by the launch of USDT on the Ethereum blockchain. Quite simply, the current Ethereum blockchain cannot handle any large number of transactions without significant waiting time and cost implications.
It has been suggested, but not proven, that alternative (newer) chains may be the answer outside of Ethereum, however this comes at a cost, security. Simply put, the more decentralized a chain is, the more secure it is. With Ethereum’s very large hashrate and robust network of nodes (100% uptime), it doesn’t get much more decentralized than that. No other chain can offer both the features, and level of security, that we demand.
There are a lot of great minds working on fixing Ethereum’s scaling issues with Ethereum 2.0 (Serenity); however, until such time as this is complete, we are still stuck with Ethereum’s current transaction speed. OmiseGo’s plasma chain will allow Hydro Pay to leapfrog these issues for users of the app.
The Hydro Pay (beta) app was released at the end of July 2019, and by using meta-transactions (MetaTX), this meant Hydro Pay was the first product functioning on Ethereum to allow users to make gas-less transactions. However, we soon realized that scaling was an issue, first for creating an account, and secondly for making a transfer. Neither was instant, which is an issue for any type of payments application. To solve these issues, the Hydro Labs team decided to use a plasma side-chain and that’s where the OmiseGO partnership comes into place.
With OmiseGo’s child chain solution, we will be able to take Hydro Pay up to an impressive 3,000+ tps (up from just 15tps on Ethereum currently). What’s more, this rate of transactions will only increase. First, as OMG continues to fine tune their technology, and secondly, once Ethereum 2.0 is released.
Ethereum scaling will be a hot topic at Devcon 2019 this week and that is why Hydro Labs are there presenting the new partnership and integration at the OmiseGo booth. Please come and say hello if you are there and test the Hydro Pay app functioning on the OmiseGo network. We would love to chat about how we can collaborate and enable lighting fast transactions on digital identity focused products.