Vitalik Buterin, founder of Ethereum, believes that the industry stablecoins is losing a valuable opportunity to improve the interoperability between the different Blockchain. In a long thread of Twitter may 20, Buterin suggested that the stablecoins could allow users to move assets through different Blockchain:
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
“In the specific case of the stablecoins to be backed by the issuer there are many things that could be done but not done. For example, each stablecoin could be a bridge instant between strings,” said Vitalik Buterin via Twitter. The activist of Bitcoin (BTC) and independent developer, Udi Wertheimer, noted something similar to what you said Buterin. He explained that a user can change their Ethereum (ETH) in USDT of Tether, this is possible within a few exchanges as Binance. In this way, you could check out almost immediately in other stablecoins, such as Omni or Tron (TRX).
Vitalik Buterin takes the view on Twitter over the stablecoins
On the other hand, Buterin explained that he would like to see a bridge that does not require the user to move funds in an exchange:
I would of course love it if they and USDC and the others could agree on a standardized API (perhaps to “bridge contract” ERC); so I don’t need to bother dealing with binance accounts to move coins around!— vitalik.eth (@VitalikButerin) May 20, 2020
“Of course I would love them and the USDC and the others agree on an API standardised (perhaps a “bridge contract” ERC); so I would not have to bother with dealing with accounts of Binance to move coins!”. Wertheimer admitted that, although connoisseurs of the industry stablecoins as he and Buterin’t like the solutions on a decentralized basis. This is not the case of the users, who do not really care how the systems work while they are interconnected. In another sense, the technical director of Tether, Paolo Ardoino, is convinced that the lack of interoperability is a problem that affects everyone. He also argues that third parties should implement a system that solves this problem and not the issuers of stablecoins. In this way, it says “Tether is the issuer of the stablecoin. There are many projects that are already working on the solution of this problem. This is a general problem that applies to all tokens of all the blockchains. Now Tether is providing advice to projects that are trying to solve this problem. So we have an active role in the process.”
What would be the solution?
Paolo Ardoino said that, the biggest challenge in the development of an interoperability protocol for stablecoins, is to develop a complete understanding of the security implications of each Blockchain involved. In this context, Jagdeep Sidhu, co-founder and main developer of the core Syscoin, which launched a bridge Syscoin-Ethereum at the end of January, commented on the challenges in the development of bridges of deadlock: “it Is easier for projects to make sacrifices to accelerate solutions to the market, or to base the interoperability of the basic market mechanisms driven by the market or liquidity providers. Only to experience multiple discoveries, or finding the adoption of companies. This may collide with obstacles due to regulatory and legal requirements”. Also, Sidhu said that Syscoin would be interested in collaborating with the issuers of stablecoins in the implementation of a bridge. In another aspect, Ardoino, suggested that a third party interested in taking USDT to the new Blockchain are free to carry them regardless: “Tether is in the Blockchains public and communities can build and use these products of chain cross-to move the Tether from one string to another. That is the beauty of this,“ he said Ardoino finally.