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According to Vitalik Buterin, stable coins could transfer value through blockchains

May 25, 2020

The co-founder of Ethereum, Vitalik Buterin believes that the stable coin industry misses a valuable opportunity Improve interoperability between different blockchains.

In a long Twitter thread on May 20, Buterin He suggested as With stablecoins, users can move values ​​across different blockchains::

“In the special case of stable coins supported by the issuer, there are many things that could be done but not done. For example, each stall coin could be an instant bridge between chains. “

Bitcoin (BTC) activist and independent developer Udi Wertheimer he showed That something similar to what Buterin has suggested is already possible when exchanging cryptocurrencies. He explained that a user can deposit the Ethereum version of the Tether USDT in the Crypto Exchange Binance and immediately withdraw the Omni protocol or the Tron (TRX) version.

According to Vitalik Buterin, stable coins could transfer value through blockchainsAccording to Vitalik Buterin, stable coins could transfer value through blockchains

Buterin, however explained You want to see a bridge where the user doesn’t have to move money around an exchange:

“Of course I would love it if she and USDC and the others agreed on a standardized API (maybe an ERC bridge contract). That way, I wouldn’t have to worry about Binance accounts to move coins! “

Users are not interested in decentralization

Wertheimer admitted that, although industry experts like him and Buterin like decentralized solutions, Users don’t care how systems work when they’re connected.

Tether Technical Director, Paolo Ardoino, on the other hand, is convinced that lack of interoperability is a problem that affects all digital tokens. It is also argued that third parties must implement a system that solves this problem, and not stable coin issuers:

“Tether is the issuer of stablecoin. There are many projects that are already working to solve this problem. This is a common problem that applies to all tokens in all blockchains. […] Tether is now advising projects that are trying to solve this problem. […] So we have an active role in this process. We just don’t develop the solution ourselves. “

A difficult solution

Ardoino said that The main challenge in developing an interoperability protocol is to develop a comprehensive understanding the security impact of each blockchain involved.

Evidence of the difficulty in implementing bridges between blockchains is the incident earlier this month in which An unguarded bridge between Bitcoin and Ethereum was closed due to a glitch just two days after it started.

Jagdeep Sidhu, co-founder and lead developer of the Syscoin core, which launched a Syscoin-Ethereum bridge in late January, commented on the challenges in developing interblockchain bridges:

“It is easier for projects to make sacrifices to accelerate solutions to the market or to base basic interoperability on market-based trading mechanisms or liquidity providers just to make multiple discoveries or to determine that business acceptance can conflict.” Obstacles due to regulatory and legal requirements. “

Sidhu told Cointelegraph that Syscoin would be “definitely” interested in working with stablecoin issuers to implement its bridge. Ardoino, however, suggested this Third parties who are interested in bringing USDT to new blockchains can manage them independently::

“Tether is in public blockchains, and communities can create and use these products to move Tether from one chain to another. That’s the nice thing about it. “