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Vitalik Buterin: stablecoins can transfer assets between blockchains

Monday, 25 May 2020

According to Ethereum co-founder Vitalik Buterin, stablecoins do not use one of the important features that allows transferring assets between blockchains.

In a long discussion on Twitter, Buterin said that using this feature would increase compatibility and data exchange between different networks.

In the specific case of issuing stablecoins supported by the Issuer, there are many things that can be done, but that are not done. For example, any stablecoin can become an instant bridge between blockchains.
Vitalik Buterin

Bitcoin enthusiast and independent developer UDI Wertheimer noted that some semblance of such bridges works on the basis of cryptocurrency exchanges. For example, you can create USDT ERC-20 tokens on Ethereum on the Binance exchange and withdraw a similar token on the Omni or Tron blockchain. Buterin stressed that it would be better to move stablecoins between networks without using exchanges.

I would be very happy if USDC and other projects developed a standard API (possibly based on smart contracts), and I would not have to worry about an account on Binance.
Vitalik Buterin

Yeah, in the specific case of issuer-backed stablecoins there's lots of things that could be done but aren't, eg. every stablecoin could be an instant cross-chain bridge!
— vitalik.eth (@VitalikButerin) May 20, 2020

Tether technical Director Paolo Ardoino believes that the lack of interaction between networks affects all crypto assets. According to him, the solution to this problem should be created by third-party companies, not issuers of stablecoins. At the same time, the main difficulty in developing an interaction Protocol is to identify and understand the security problems of each blockchain.

Thus, the release of the recently launched tBTC token based on Ethereum, linked to bitcoin, was suspended after the vulnerability was discovered.