4 ms·

> This is why the arguments get so confusing. I could transfer any currency on the blockchain and get the so-called benefits of bitcoin: immutable transactions,

> This is why the arguments get so confusing. I could transfer any currency on the blockchain and get the so-called benefits of bitcoin: immutable transactions, low transaction costs, etc. If you really think that, you don't understand bitcoin. How do you load your USD on to this hypothetical block chain? How do you prove you destroyed the physical notes? Is there a mechanism to turn it back into physical notes? How do you hand out a block reward without creating counterfeit USD? For bitcoin to work, it needs to be its own currency.

basseq 9y ago
(Point of pedantic clarification: I'm really using lowercase-B 'blockchain' to really mean 'distributed ledger', of which the capital-B 'Blockchain' is a form. Distributed ledgers that do not rely on mining or 'coins' have been proposed, but obviously haven't been implemented broadly. So let's limit this to the Bitcoin/Blockchain archetype.) So to answer your question, a couple points: 0. You can use the blockchain without bitcoin as the token of choice. You create your own limited tokens and go from there. This has already happened with various altcoins. 1. You can create private chains. Bitcoin mining and the associated value (currency) therein is one way to create a (public) ledger, but not the only way. 2. You don't 'load your USD' onto the blockchain. That ignores the point of a distributed ledger. Emphasis on that last word, because what we're talking about here is a trusted record of transactions. That's why the blockchain isn't just about currency, and gives participants a way to immutably record all kinds of things.
- jstanley 9y ago
  Fair points. I'm interested how you see the ledger working if you don't load any USD on to it? How does the first $1 come to exist on your ledger? Are you thinking of something like Tether?

4 ms·

> This is why the arguments get so confusing. I could transfer any currency on the blockchain and get the so-called benefits of bitcoin: immutable transactions,

by jstanley 9y ago

basseq 9y ago
(Point of pedantic clarification: I'm really using lowercase-B 'blockchain' to really mean 'distributed ledger', of which the capital-B 'Blockchain' is a form. Distributed ledgers that do not rely on mining or 'coins' have been proposed, but obviously haven't been implemented broadly. So let's limit this to the Bitcoin/Blockchain archetype.) So to answer your question, a couple points: 0. You can use the blockchain without bitcoin as the token of choice. You create your own limited tokens and go from there. This has already happened with various altcoins. 1. You can create private chains. Bitcoin mining and the associated value (currency) therein is one way to create a (public) ledger, but not the only way. 2. You don't 'load your USD' onto the blockchain. That ignores the point of a distributed ledger. Emphasis on that last word, because what we're talking about here is a trusted record of transactions. That's why the blockchain isn't just about currency, and gives participants a way to immutably record all kinds of things.
- jstanley 9y ago
  Fair points. I'm interested how you see the ledger working if you don't load any USD on to it? How does the first $1 come to exist on your ledger? Are you thinking of something like Tether?