Vitalik Buterin vs. Bitcoin on Ethereum
Vitalik Buterin expressed their opinion on everyone tokens representing bitcoins on the Ethereum blockchain (ETH).
I am concerned about the trust patterns of some of these tokens. It would be sad if there ended up being $ 5 billion worth of BTC on Ethereum and the keys being held by one institution.
– vitalik.eth (@VitalikButerin) May 21, 2020
So what Vitalik criticizes is theirs centralization, not the project itself, since a few months ago, he specifically asked the community.
I am pro-interoperability. But interoperability can be achieved with thin clients and merkle evidence; many things seem too complex for their own good. Years of theorization, still no * good * BTC <-> DEX with cross chain DEX….
– vitalik.eth (@VitalikButerin) February 22, 2020
The comment starts from the observation of a graph which compares Bitcoins (BTC) blocked on Ethereum compared to those blocked on the Liquid blockchain, showing that Ethereum is 2.5 times more used than the competitor.
Buterin points out that the model behind some of these ERC20 tokens is worrisome because puts huge liquidity in the hands of a few, both for better and for worse: in fact, in this way, all bitcoins are conferred in a smart contract which will then be converted into tokens.
Concerns are well-founded as there are protocols which are not entirely decentralized, we think for example of wBTC (Wrapped Bitcoin) which has a confederated system and by which you must go through a KYC procedure (Know Your Customer); among other things is recently has also become a guarantee for stablecoin DAI.
Or we can also see the recent TBTC failed, which failed to manage the launch of the main network, despite the fact that the model was more decentralized than wBTC.
Obviously, not all tokens aggravated by bitcoin are harmful, in fact, there are solutions that offer more decentralized and economical solutions as regards the management of signatures and smart contracts themselves, we think of the pTokens who have certified and protected equipment that does not allow them to be handled from the outside, and who are also easy to use on the EOS blockchain.
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