2 ms·
I see the appeal in those things for some people. But I think most people are happy to forego those things and not have to worry about losing significant chunk
by canoebuilder 9y ago
I see the appeal in those things for some people.
But I think most people are happy to forego those things and not have to worry about losing significant chunks of cash to fat-finger mistakes or hacks.
When most people barely know what a browser is, illuminating them to the intricacies of bitcoin seems a tall task. And if they can just use some system like Coinbase and "not even know they're using bitcoin," then they're essentially just using Paypal.
It's hard to see how it ever goes beyond a very niche market, and as long as that niche market is in a speculative frenzy it's hard to see how it becomes of much use to that market beyond a vehicle for speculation.
And should some group trade amongst themselves while avoiding censorship from some other group, the persecuted group as it grows in number becomes likely to use it's numerical sway to influence the govt doing the censorship in a new direction, or form a new govt that facilitates more efficient trade between the group.
And efficiency here refers not just to a couple ledgers instead of thousands, but also the massively reduced overhead of every member not having to do extensive security themselves, but rather offloading the security to central authorities.
Trust is beneficial to society, the more trust in a society the better a society scores on a host of other metrics.
- mbrock 9y agoBitcoin and other blockchains enable more or less trusted associations to form using side channels. A typical example is using off-chain collaboration to exchange signed transactions of deposited funds. It seems reasonable to consider trustless cryptocurrency as a base layer for "international settlement." Coinbase is significantly different from PayPal because of this final public settlement layer that is open and well-defined, unlike the proprietary bank systems.
- canoebuilder 9y agoThat was my point. I don't see how using "side-channels" or "off chain" systems are materially different from using the Visa or the Kroner system, and then when you want a public settlement layer that is open and well-defined converting some funds from those systems to a crypto system. What's the difference? Can't off chain systems be seen as simply analogous to transacting in deposited funds with paypal where your paypal password is the signature? Maybe these systems send something out to a public blockchain, but you're still trusting them to honor withdrawals of your deposited funds in the same way you would with paypal, correct? What is the actual use in practice of side channels and off chain systems these days?
- mbrock 9y agoBlockchain payment channels can have security properties that go way beyond just trusting a third party with deposits. Here's a little example of setting up a reasonably secure payment channel with the help of an Ethereum smart contract: https://medium.com/@matthewdif/ethereum-payment-channel-in-50-lines-of-code-a94fad2704bc https://medium.com/@matthewdif/ethereum-payment-channel-in-5...