Tether transferred 15 million USDT from the Ethereum blockchain to the Liquid Bitcoin sidechain. This led to a lively discussion. regarding the advantages and disadvantages of Blockstream technology.
Protocol-Based Confidential AssetsConfidential Transactions will help hide the amount of USDT transfers between wallets. According to representatives of Blockstream and their supporters, traders actively use information about large transfers of the dominant stablecoin for speculation.
Despite the fact that the total number of tokens issued to Liquid remains public, some observers have already predicted the migration of USDT from Ethereum to the sidechain in search of more privacy.
Not everyone has agreed with the statement that Ethereum has privacy issues. An example was the tornado.cash service.
Some users were indignant that nobody was sodid not actively cover the migration of 2.2 billion USDT from Bitcoin to Ethereum last year, although this was potentially the largest shift in economic activity in the history of the industry.
Developer Bruce Weiner suggested thatLiquid’s privacy will only worsen money laundering through Tether. He called the sidechain a “Bitcoin junk fork,” and Confidential Transactions technology, a hack.
He is convinced that hiding transaction amounts makes the network vulnerable to spam due to the inability to restrict the distribution of so-called “dust”.
Recall that earlier Vitalik Buterin advised the developer to create a decentralized social network on “shitty sidechains”, and then switch to the finished Ethereum 2.0.
Liquidt's support for USDT was announced last summer.