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Vitalik Buterin versus Bitcoin on Ethereum
Vitalik Buterin versus Bitcoin on Ethereum
Ethereum

Vitalik Buterin versus Bitcoin on Ethereum

By Alfredo de Candia - 22 May 2020

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Vitalik Buterin expressed his opinion on all tokens representing bitcoin on the Ethereum (ETH) blockchain.

What Vitalik criticizes is their centralization, not the project itself, considering that a few months ago he expressly invited the community to develop something like this.

The comment arises from the observation of a graph comparing the Bitcoins (BTC) locked on Ethereum with those locked on Liquid’s 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 worrying because it puts in the hands of a few a huge amount of liquidity, both for better and for worse: in fact, this way all bitcoins are transferred into a smart contract and then converted into tokens.

The concerns are well-founded because there are some protocols that are not completely decentralized, think for example to wBTC (Wrapped Bitcoin) which has a confederate system and which requires a KYC (Know Your Customer) procedure; recently it has also become collateral for the DAI stablecoin.

Or we can also observe the recent failure of tBTC, which couldn’t deal with the mainnet launch, despite the fact that the model was more decentralized than wBTC.

However, not all bitcoin-pegged tokens are bad, as a matter of fact, there are some solutions that offer more decentralized and cheap solutions in terms of management of both signatures and the smart contracts, for example pTokens, which have a certified and protected hardware that doesn’t allow to be tampered with from the outside, and that can also be easily used on the EOS blockchain.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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