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Is that a bug or a feature? Edited to add: There is this idea of trust in centralized and decentralized currencies, and they're both different. In the centra

by bb88 9y ago

Is that a bug or a feature? Edited to add: There is this idea of trust in centralized and decentralized currencies, and they're both different. In the centralized currency I can trust that if someone was ripped off there's recourse, However, in a decentralized one I cannot trust there's recourse?

bdcravens 9y ago
Definitely a feature. Bitcoin is a response to centralization; decentralization is its raison d'être
- bb88 9y ago
  To me, it just seems like if a decentralized currency is the future, fraud protection might be a necessary component before people jump on board en masse. Otherwise stories like this make crypto currency look like the wild west.
nokcha 9y ago
It's a fundamental architectural decision that has both advantages and disadvantages. It means that there is no single point of failure, but it also means that it's difficult or impossible for the system to remedy things such as theft.
- skybrian 9y ago
  Yes, and even the "no single point of failure" thing is overrated. For people using cryptocurrency to try to do things (as opposed to the system perpetuating itself), there are lots of risks caused by irreversibility.
bdcravens 9y ago
> in a decentralized one I cannot trust there's recourse? Bingo. How you acquire, secure, and use your currency should come from the trustless nature (of course, speculation and Bitcoin as a "better Visa" has tainted perspective which is why hacks and thefts are common) That said, most physical assets have no recourse either, aside from legal recourse. Same as Bitcoin.
- bb88 9y ago
  > That said, most physical assets have no recourse either, aside from legal recourse. Same as Bitcoin. But bitcoin is electronic. And many asset transactions done electronically (credit card, checks, bank transfers) do have some form of recourse. Even with cash, one can record the serial numbers of your bills and give those to the FBI if they're stolen. In fact, it's pretty common for high end bill counters to offer this capability.
- IntronExon 9y ago
  Physical assets can be, and frequently are, insured. If they’re very valuable, the insurer will undertake investigations, and involve law enforcement if needed.

by bb88 9y ago

bdcravens 9y ago

Definitely a feature. Bitcoin is a response to centralization; decentralization is its raison d'être

bb88 9y ago
To me, it just seems like if a decentralized currency is the future, fraud protection might be a necessary component before people jump on board en masse. Otherwise stories like this make crypto currency look like the wild west.

nokcha 9y ago

It's a fundamental architectural decision that has both advantages and disadvantages. It means that there is no single point of failure, but it also means that it's difficult or impossible for the system to remedy things such as theft.

skybrian 9y ago
Yes, and even the "no single point of failure" thing is overrated. For people using cryptocurrency to try to do things (as opposed to the system perpetuating itself), there are lots of risks caused by irreversibility.

bdcravens 9y ago

> in a decentralized one I cannot trust there's recourse? Bingo. How you acquire, secure, and use your currency should come from the trustless nature (of course, speculation and Bitcoin as a "better Visa" has tainted perspective which is why hacks and thefts are common) That said, most physical assets have no recourse either, aside from legal recourse. Same as Bitcoin.

bb88 9y ago
> That said, most physical assets have no recourse either, aside from legal recourse. Same as Bitcoin. But bitcoin is electronic. And many asset transactions done electronically (credit card, checks, bank transfers) do have some form of recourse. Even with cash, one can record the serial numbers of your bills and give those to the FBI if they're stolen. In fact, it's pretty common for high end bill counters to offer this capability.
IntronExon 9y ago
Physical assets can be, and frequently are, insured. If they’re very valuable, the insurer will undertake investigations, and involve law enforcement if needed.