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1) They've conveniently ignored many crypto coins with high transaction levels 2) It's believed that 68% of all ethereum transaction value is controlled by jus
by joosters 9y ago
1) They've conveniently ignored many crypto coins with high transaction levels
2) It's believed that 68% of all ethereum transaction value is controlled by just one system - https://blog.cyber.fund/huge-ethereum-mixer-6cf98680ee6c https://blog.cyber.fund/huge-ethereum-mixer-6cf98680ee6c - A large number of ethereum transactions are just mixing coins to hide ownership.
- DennisP 9y agoWhich coins with high transaction levels do you mean? I'm not aware of other fully-public blockchains that have comparably high levels, though maybe I'm missing something. With permissioned chains it's much easier to reach high throughput. The so-called mixer has been debunked here before. It actually looks like exchanges, and the temporary addresses they generate for deposits. That does mean that a large portion of transactions are with exchanges, but that shouldn't surprise anyone, and would be the same on Bitcoin.
- joosters 9y agoBitShares and Steem, for example : http://blocktivity.info/ http://blocktivity.info/
- CryptoPunk 9y agoBitShares and Steemit are both highly centralized. Their architecture is very similar to a traditional server client set up: they have a small number of trusted nodes, and non validating clients that depend on them. And the transactions in Steemit at least are generally very low value, with 1-cent upvotes and article/comment entries making up the bulk of them. In comparison, the average value of an Ethereum transaction is $10,000.
- joosters 9y agoCentralized or not, they are still digital currency, or crypto coins, both use a blockchain. The centralization is a moot point, you are picking at hairs. The value of the transactions may differ, but at least the Steem transactions are more likely to be 'real', that is to say they are transferring value from one person to another. See my earlier comment about how a large proportion of ethereum 'value' is merely shuffling coins between different wallets of the same owners.
- FatalLogic 9y agoAnd transaction value is a very different thing from the number of transactions. In this case, that exchange system has been estimated to be doing about 10% of the total number of transactions, not 68%
- joosters 9y agoHave you a source for that? I'd be interested in reading about it. In any case, the end result is the same. There's a large amplification factor in ethereum transactions, since many transactions are just the shuffling of coins without any value actually changing hands.
- DennisP 9y agoI did a quick google and didn't find the article I was thinking of. But it's actually only 10% of transactions, which is the metric the OP's article is about, and 68% of transaction value. But if it's just the normal operation of exchanges I don't think we can really conclude that there's no value changing hands. If you transfer funds from one account on Coinbase to another on Kraken or whatever, there's a temporary address involved, just like the article is describing. And it's the same with Bitcoin and other cryptocurrencies.
- joosters 9y agoThe article implies that there are more transactions going on than would be expected for an exchange with lots of user accounts. The first diagram suggests that there is a rotation of transactions, i.e. coins are churned through multiple addresses many times. That kind of thing is not needed to operate an exchange; you just need to gather money from deposits, send money to withdrawals (many exchanges fail at this point :) and shuffle the rest between a hot wallet and an offline store from time to time. In other words, the ethereum transactions are far in excess of what a typical exchange would need. A bitcoin exchange doing so many transactions would probably go bust from the fees alone! (However, the story isn't crystal clear about what they mean by the 'rotation' of transactions. It says 'rotated 80 times' but I'm not sure if that means each input address goes through 80 transactions before going to an output.)
- mconnell 9y agoXRP would be one, Tuesday's transaction count was 951,163: https://xrpcharts.ripple.com/#/metrics https://xrpcharts.ripple.com/#/metrics
- drcode 9y agoIs it really a cryptocurrency though? It seems more like a paypal alternative (i.e. the ripple foundation can roll back any transaction at will and has done so in the past)
- justinjlynn 9y ago> has done so in the past Which?
- xorcist 9y agoIn all fairness, so has the Ethereum Foundation with the DAO and the latest Parity hack is not unlikely to be next.
- woah 9y agoThe difference is that the DAO hardfork was not done by the Ethereum Foundation. It was recommended by the Ethereum Foundation and the actually done by the vast majority of miners, in consensus.
- justinjlynn 9y agoNo, seriously; which transactions were reversed? I'm unaware of any such thing occurring on the network. The construction of the network/consensus protocol means that Ripple would have to get a majority of all validators on the majority of everyone's UNLs to lie to reverse a transaction. Ripple likely does not have such influence /or/ if they do, then you are free to select a larger UNL set, along with the rest of the community, such that they /do not/.
- CryptoPunk 9y agoRipple is a permissioned blockchain.
- th0br0 9y agoThe IOTA network sustained >1.1 million TX over the last 24h as well (a bit more because there's a gap in my stats) - most without value however. The selection of protocols is indeed quite selective. Disclaimer: I work on IOTA.
- haakon 9y agoNot really comparable, since IOTA is centralized in its current form.
- Buttes 9y agoAnd since they're value-less transactions, essentially unrewarded mining activity.
- tyrust 9y agoThe commenter you replied to asked for public blockchains. Until the coordinator is turned off IOTA is a permissioned blockchain.
- mycall 9y agoIOTA doesn't have a blockchain, its a DAG.
- cgb223 9y agoHow’s the work on Iota going? Are we anywhere near close enough to get rid of the centralization? I’m really excited about the project
- th0br0 9y agoLots to do and hard to find talented hands to work on things. But great overall - both on seeing adoption in real world use cases and development side. As for the other question: once the network is more - next year?
- gruez 9y ago>I'm not aware of other fully-public blockchains that have comparably high levels, though maybe I'm missing something. With permissioned chains it's much easier to reach high throughput. but the title says "Ethereum Now Handles More Transactions Than All Digital Currencies Combined". note "Digital Currencies", not "blockchain currencies".
- Kiro 9y agoIt was a reply to "1) They've conveniently ignored many crypto coins with high transaction levels" though.
- Taek 9y agoSia does an estimated 100,000 transactions per day doing uploads and downloads via payment channels. Fully decentralized and trustless, yet because it's layer 2 these transactions are often overlooked.
- cordite 9y ago"just mixing coins to hide ownership" Isn't that the definition of laundering?
- deleted 9y ago[deleted]
- eqmvii 9y agoYes
- icebraining 9y agoI don't think so. Money laundering is hiding the source of the money, usually because it's illicit. This might be tax evasion if you hide it from the IRS, but that's not laundering. IANAL, of course.
- unfunco 9y agoA drug dealer tumbling ether _is_ hiding the source of the money.
- geezerjay 9y agoWikipedia's article on money laundering states that in some countries obfuscating the sources of money is considered money laundering. This means that at least in some countries this fits precisely the definition of money laundering.
- deleted 9y ago[deleted]
- drcode 9y agoNo, it's something called "privacy", which can be used towards good ends or bad ends... I don't want to live in a world where anyone who values privacy is immediately viewed as suspicious, where we say that "anyone who tries to maintain privacy must be a criminal"
- valsoltow 9y agoThere are plenty of other cryptos http://vectorspace.ai http://vectorspace.ai
- dna_polymerase 9y agoStop posting minimal replies to advertise your website. Do a Show HN or just stop completely.
- ChrisClark 9y agoA good distinction to make, 68% of the value is going through the mixers. I saw a calculation that it's only about 17% of the actual number of transactions.
- kompiuter 9y agoForgive my ignorance but how does mixing achieve privacy? The blockchain is public, so you should be able to trace back ownership regardless of the number of addresses it's been through?
- lm2s 9y agoIf X people send to an address and then the amount is distributed by a different number of outputs (for example 3 addresses for 1 person, 4 for another, etc) you can see how it can make hard to track down who has what.