Oddbean

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 If they can freeze your addresses how is that considered self custody?

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 As far as I understand it it's not really self custody when it comes to stablecoins, as they have some sort of official backdoor into their smart contract that allow them to freeze the tokens at will...

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 So they have to update the smart-contract in order to block the addresses?

What if there were so many addresses that the smart-contract can't hold them all? Is there a limit on smart-contract size?

Or maybe the smart-contract can call out to ask the Tether server if it's okay?

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 What gas-fees is Tether paying to update the smart-contact with a new list of banned addresses? Less than the amount of dollars cancelled I guess, but need that be true?

Is there a hack here to get enough addresses banned they have to lock up the blockchain with banning addresses?

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 I think you answered your question. They can just call an API to see if an address is banned. It's easy peasy when it's centralized.

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 🤔 Seems hardly any point in it being on-chain at all then if every request to move one ends in a call to a central Tether server.

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 Yes, it's decentralization theatre

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 #crypto 
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