3 ms·

This is a great analysis. The lack of trust as a feature in cryptocurrency is really a bug in society. Bitcoin rose out of the previous financial collapse by a

This is a great analysis. The lack of trust as a feature in cryptocurrency is really a bug in society. Bitcoin rose out of the previous financial collapse by appealing to people who have lost trust in institutions. The problem with building a trustless answer to that problem is that (assertions ahead) life isn't compatible with an absence of trust. Trying to build a trustless financial system is a quixotic undertaking at best. It really smacks of a utopian dream where fundamental aspects of human nature are blithely ignored. Of course, as you point out, no one is really trying to do it. Most people will have to trust Coinbase or whichever exchange they choose.

DennisP 9y ago
The financial system isn't all that dependent on trust. There are all sorts of reconciliations and audits, which wouldn't be necessary if entities trusted each other. Those methods are slower and costlier than what blockchains may be able to offer. On the other hand, 2008 was partly enabled by entities trusting each other. They trusted AAA ratings, AIG, Goldman Sachs, and third party holders of mortgage records. In various ways, all these systems failed the people who trusted them.
sol_remmy 9y ago
Our current financial system does require end-users like you and me to trust each other either. It only requires us to trust the legal system
imtringued 9y ago
Bitcoin ended up becoming a federated system instead of being a centralised system or decentralised system. There are multiple providers. If one provider goes bust you can still move to the next. There are a few minor differences. The blockchain retains data accross providers as long as there is at least a single node. Traditional systems like email require you to migrate your data manually from the old provider to the new one. PoW is spam resistant because it costs money to send spam.

DennisP 9y ago

The financial system isn't all that dependent on trust. There are all sorts of reconciliations and audits, which wouldn't be necessary if entities trusted each other. Those methods are slower and costlier than what blockchains may be able to offer. On the other hand, 2008 was partly enabled by entities trusting each other. They trusted AAA ratings, AIG, Goldman Sachs, and third party holders of mortgage records. In various ways, all these systems failed the people who trusted them.

sol_remmy 9y ago

Our current financial system does require end-users like you and me to trust each other either. It only requires us to trust the legal system

imtringued 9y ago

Bitcoin ended up becoming a federated system instead of being a centralised system or decentralised system. There are multiple providers. If one provider goes bust you can still move to the next. There are a few minor differences. The blockchain retains data accross providers as long as there is at least a single node. Traditional systems like email require you to migrate your data manually from the old provider to the new one. PoW is spam resistant because it costs money to send spam.