3 ms·

I used to believe in this before the Ethereum DAO thing happened, which made me realize: cryptocurrencies sell themselves on "decentralization" yet by the natur

I used to believe in this before the Ethereum DAO thing happened, which made me realize: cryptocurrencies sell themselves on "decentralization" yet by the nature of the technology, anyone with access to sufficient resources can gain control of the system. There's nothing to stop this from happening at any point in the future of any cryptocurrency... and it's insane to think that any sort of currency that needs to be forked repeatedly and without warning will catch on with normal users. I'm no cryptocurrency hater or anything and the idea appeals to me at a deep level but I have a hard time seeing the tech as it currently exists working in practice in human society.

swift532 8y ago
I think the instability of the past (contentious forks, DAO, anything else) are growing pains, but with enough time I believe it's possible that we as a sort of hive mind will settle on something more permanent and stable because, at one point, it'll be in noone's interest to fragment the network.
- adamrezich 8y ago
  >because, at one point, it'll be in noone's interest to fragment the network It will always be in someone's interest to attempt to take control of a network, thus eventually causing opposition interest to fork the network, thus continued fragmentation and impenetrability w.r.t. normal users Basically, how do you solve the "government and/or private individual/group with enough wealth and/or access to resources can take control of a cryptocurrency by acquiring majority consensus" problem?
  - swift532 8y ago
    In proof of stake, that could be a problem (though there are mechanisms people claim can handle it). But in a proof of work currency, having majority consensus would mean they'd have to have the majority of miners - and even then they have to follow the rules because users' nodes will just reject invalid blocks. And in the worst of cases, people can fork away, and if they change the PoW algorithm while doing so - they'll also render the malicious actor's ASICs useless. I'm not saying this is fool proof, but the innovation of Bitcoin is precisely the system which is designed to resist these things (again, it's still very hard).

swift532 8y ago

I think the instability of the past (contentious forks, DAO, anything else) are growing pains, but with enough time I believe it's possible that we as a sort of hive mind will settle on something more permanent and stable because, at one point, it'll be in noone's interest to fragment the network.

adamrezich 8y ago
>because, at one point, it'll be in noone's interest to fragment the network It will always be in someone's interest to attempt to take control of a network, thus eventually causing opposition interest to fork the network, thus continued fragmentation and impenetrability w.r.t. normal users Basically, how do you solve the "government and/or private individual/group with enough wealth and/or access to resources can take control of a cryptocurrency by acquiring majority consensus" problem?
- swift532 8y ago
  In proof of stake, that could be a problem (though there are mechanisms people claim can handle it). But in a proof of work currency, having majority consensus would mean they'd have to have the majority of miners - and even then they have to follow the rules because users' nodes will just reject invalid blocks. And in the worst of cases, people can fork away, and if they change the PoW algorithm while doing so - they'll also render the malicious actor's ASICs useless. I'm not saying this is fool proof, but the innovation of Bitcoin is precisely the system which is designed to resist these things (again, it's still very hard).