5 ms·
maybe the banks don't trust each other.
by elmar 9y ago
maybe the banks don't trust each other.
- cm2187 9y agoFor the two parties to trade they need to agree with each other's, otherwise there are no transaction to settle. Each party can sign the transaction with its private key, and exchange the signature, so that each party has verifiable proof (from the counterparty public key) of the transaction. And if you want to validate the keys, use the central bank as a certificate authority. A bank not approved and monitored by the central bank is not a bank and can't make payments.
- gcb0 9y agoand how instead of trusting each other they will trust the bank with most computers?
- candiodari 9y agoNope, they will trust the central bank. It's in the article.
- gcb0 9y agoso their distributed ledger consensus rule for all the peers is "check with central authority"? this is golden!
- stale2002 9y agoThe purpose is to have a transparent ledger, in which "funny business" is immediately apparent. If a double spend is even attempted, everyone will know what is up. Here is a better way of thinking of it. Imagine if every bank had a database of the ledger, and announced what they believe the ledger is to everyone ever 10th of a second. This is effectively what "blockchain" technology is providing for the network.
- cm2187 9y agoTo me this is still a solution in search for a problem. When did we have the last major disagreement between two major international banks on a payment? Value of a collateral? Yes. Conflicts of lenders? Yes. Bank A saying they made the payment and Bank B saying that they never made the transaction? Between the likes of Barclays, Credit Suisse, HSBC, etc?
- woodandsteel 9y agoNon-expert here. My understanding is the reason that sort of thing doesn't happen is because every bank has a vast army of employees it pays to ensure it doesn't happen, and with the blockchain you could fire the great majority of them.
- candiodari 9y agoEx-bank employee (developer on ATMs) here. This happens. Constantly. Even in automated systems. For a million different reasons.
- paulgb 9y agoIf they trust the central bank for settlement why not trust the central bank to keep the ledger?
- stale2002 9y agoBecause if they lie about the ledger then they more easily get away with it, as they could have secretly changed the ledger.
- stale2002 9y agoThey aren't using proof of work. The person of using "blockchains" is to have a transparent ledger.
- deleted 9y ago[deleted]
- tryingagainbro 9y agoThat's why they have a gazillion lawyers each.