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Comment by getcrunk

9 hours ago

Interesting I didn’t know you can block/cancel transactions. Does this have to happen before the new block is minted. or it can happen after, that’s what I’m inclined to think just based off of the word block

7 comments

getcrunk

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cosmojg  8 hours ago

Centralized stablecoins like USDT and USDC aren't layer-one cryptocurrencies like Bitcoin or Ethereum. They're more like applications running on top of other blockchains, usually as smart contracts, and their issuers hold admin keys which can freeze, mint, burn, and otherwise redistribute funds at will. As far as timing goes, stablecoin issuers can't actually cancel or reverse a transaction that's already in a block that's been mined, but they can freeze the receiving address afterward and burn the funds there, then reissue them elsewhere, which has much the same effect.

  • Frieren  5 hours ago

    That sounds interesting. How is that different from a bank? What are the advantages and disadvantages compared with a traditional bank?

    • gucci-on-fleek  4 hours ago

      If traditional banking is available to you, then I don't think that there are any significant advantages. But lots of people—notably those in countries with unstable currencies [0]—don't have access to high-quality banking, so for them, stablecoins can be an acceptable substitute in some cases. It's probably not a great idea to hold stablecoins long-term (there's always a risk of the sponsoring company going under, and unlike bonds they don't pay interest), but it should be fairly safe to use them for transfers, since the transfers are quick enough that there are very low odds of the company becoming insolvent while the transfer is underway.

      [0]: https://news.ycombinator.com/item?id=50012907

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    • origini  3 hours ago

      Its a weird loophole or so.

      You take 1 $ from someone and give them a token, now you have money the other not. In theory you need to make sure you keep the 1$ but you want to pay people and you are greedy so you invest it and suddenly everyone is broke.

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