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The recently launched implementation of the Gemini dollar stablecoin (GUSD) can be completely changed by a Gemini custodian every 48 hours, according to a study by blockchain researcher Alex Lebed and an encrypted consultant Alexey Akhunov, published in Medium l & # 39; Sept. 11.
In the research, the authors review the GUSD smart contract code to demonstrate that the implementation of the Gemini USD can become non-transferable or frozen at any time, as noted in the white paper of the Gemini dollar. The option to pause, block or reverse GUSD transfers is one of the basic technical principles of the new centralized stablecoin introduced by Tyler and Cameron Winklevoss, according to the white paper.
The Gemini white paper describes this function along with three other main principles of GUSD blockchain design, citing the need for the ability to manage token transfers in the event of unforeseen circumstances:
"[Gemini can] token transfers, blocking or reverse token in response to a security incident (ie, catastrophic event). "
In particular, the study authors review the Smart Gemini dollar contract, implemented as an ERC20 token on the Ethereum blockchain (ETH), in order to demonstrate how users can "independently" detect this feature. [19659002] The search is based on the Gemini address that was found both on a Reddit thread and on Bitcoin Talk, while the researchers said that, however, there is "no trusted way to know" yet that this address is the only address of Gemini.
As the study found, Gemini's custodian is able to generate an unlimited amount of Gemini USD, and can completely change the implementation every 48 hours, making the coins non-transferable. In conclusion, the authors of the study seemed to question this ability to guard against "truly decentralized and censorship-resistant monetary systems."
Following the approval of the New York Department of Financial Services (NYDFS), the Winklevoss brothers launched the new centralized Gemini dollar stablecoin on Monday, September 10th. GUSD is supported by US dollars "held in a bank located in the United States and eligible for" FDIC "pass-through deposit insurance, subject to applicable restrictions."
The Gemini Dollar is the first cryptographic resource by the Winklevoss twins, who previously received a second refusal by regulators to launch the Bitcoin (BTC) exchange fund (ETF) in July.
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