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Taro would open a new attack surface: stablecoin issuers choose forks
141 sats \ 6 comments \ @om 19 Aug 2022 bitcoin freebie
Suppose that there's a fork into CompliantBitcoin and TrueBitcoin. If there are centralized stablecoins such as USDC or USDT issued on the chain then Circle and Tether will just refuse to redeem tokens on TrueBitcoin. If stablecoins are popular enough then CompliantBitcoin automatically becomes the king.
This is already the situation in Ethereum:
stablecoin issuers in control
Curve Finance: Yes, they are in control of Ethereum, essentially
https://nitter.it/CurveFinance/status/1555237094385147905
I'm afraid that Taro is playing with fire here as it is a major attack vector.
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0 sats \ 5 replies \ @satup 19 Aug 2022
There could a lot of fake stablecoin ids as well, we can imagine, it's actually time to let Fed participate. By saying participation, not control, but to embrace this new tech.
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0 sats \ 4 replies \ @om OP 19 Aug 2022
Wdym "let Fed participate"? Who prevents it from doing what Circle and Tether do?
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0 sats \ 3 replies \ @satup 19 Aug 2022
i guess what i’m saying is to include Fed in the game and open up USD channels to have both liquidity and endorsement, the same time giving up their CBDC myth, which is fundamentally unworkable.
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0 sats \ 2 replies \ @om OP 19 Aug 2022
"include Fed"? Who could exclude it from the permissionless chain?
Why is CBDC unworkable? The Fed is capable of making its own blockchain if it wants to.
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0 sats \ 1 reply \ @satup 19 Aug 2022
I don't see it's impossible, on Fed Chain, but it won't happy based on the past research and dilemmas. There's no any upside though for Fed to run a vast technical infrastructure(cost reason) with no community-back.
Taro is opening a door to welcome any central banks, literally, now it's their call to adapt it or not.
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20 sats \ 0 replies \ @om OP 19 Aug 2022
A central bank using an existing blockchain is in principle possible. If I recall correctly, Ukraine plans to issue its CBDC on Stellar.
But the only reason Bitcoin infrastructure is vast is to mess with the government. If you're the government, you might get away with just 10 nodes and no mining whatsoever. That's roughly what Stellar has, I think.
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