Issuers of centralized stablecoins such as Tether (USDT) and USD Coin (USDC) will be able to determine which of the chains formed within contentious hard forks the community will adopt. This was stated by Ethereum co-founder Vitalik Buterin at the BUIDL Asia conference, reports Cointelegraph.
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\”Two separate networks […], and then there will be exchanges, oracle providers, stablecoin providers, which, in a sense, decide which one they respect. […] Essentially, the USDC issuer’s decision on which Ethereum chain to deem legitimate could become an important factor in future contentious hard forks,\” he said.
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In his view, \”there are no signs\” that such disagreements will pose a problem during the transition of the Ethereum network to the Proof-of-Stake (PoS). Buterin noted that in the next five to ten years the blockchain of the second-largest cryptocurrency by market capitalization will face contentious hard forks — precisely then stablecoin providers could exert significant influence.
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As a possible counterweight to centralized players, he proposed to \”encourage\” the use of decentralized assets such as DAI from MakerDAO.
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Earlier, the cryptocurrency exchange Poloniex said it would support potential Ethereum forks on the Proof-of-Work (PoW) algorithm after the main network’s merge with the Beacon Chain, which is planned for September 2022.
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Earlier, the Frax Finance team, for its part, proposed to the community to forgo launching the algorithmic stablecoin FRAX in potential PoW Ethereum forks.
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