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Anonymity - most people don't need or want it, and those who do need real anonymity, not traceable pseudo-anonymity. 51% attack - consider other uses like a sh
by grey-area 10y ago
Anonymity - most people don't need or want it, and those who do need real anonymity, not traceable pseudo-anonymity.
51% attack - consider other uses like a shared ledger between 5 big banks, all of a sudden you just need 3 colluding and your blockchain is broken. Or bitcoin, most of the miners are in China, the state intervenes one day and secretly requires collusion.
POW - 7 transactions a second, minutes to confirm and massive costs for those keeping full copies of the chain are big stumbling blocks to any blockchain based on POW as in the example or bitcoin.
I think it has some fascinating ideas around shared trust, but Blockchains based on POW are fundamentally unsuited to the sort of large networks of transactions they are being proposed for and centralised solutions involving signing or hashing have the same advantages but solve all these problems and others like trust.
- Natanael_L 10y agoThings like Lightning Network helps Bitcoin scale by creating a network of payment channels, where you work with "transaction drafts" shared between various nodes that are updated for every transaction made by the involved parties, and which is frequently "settled" on the blockchain by being published to it in its latest version (followed by creating a new "draft"). This means that only a fraction of all transactions actually need to be visible on the blockchain since LN is a secure way to "keep tabs" on the current coin ownership. Using multisignature mechanisms and timelocks, this is very secure and abuse resistant.