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Stable coins are not "crypto" currencies. They have black lists (similar to your bank's fraud department) and they are backed by deposited money (so there is tr
by oleganza 5y ago
Stable coins are not "crypto" currencies. They have black lists (similar to your bank's fraud department) and they are backed by deposited money (so there is trusted issuer who promises to redeem them for actual cash).
So 2 key features of a crypto-currency are lacking in stablecoins: censorship-resistance and absence of centralized trusted parties.
That you can move them on a blockchain (as long as permitted) with your private key is not much different from signing TLS connection in your Venmo. But with higher fees and latencies.
- _nhynes 5y agoWhat about algorithmic stable coins like Dai, Terra, Fei, USDN, or cUSD? You still move them using your private key, but at least there's no centralized blocklist.
- oleganza 5y agoThe trusted party there are price oracles. Plus, matters are muddied by the "governance" usually built-in which adds another trusted parties who are supposed to do emergency interventions (like Fed does ;-) I don't mean to be mean, but if you have a fundamental security issue, "solving" it with a complicated protocol that still has the same security issues deep at the core, sounds like "scam" to me. Venmo, PayPal and Bitcoin are fair in their offerings: you know who you trust with what and that's the security model without any sugarcoating.
- deleted 5y ago[deleted]