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"If well-designed and appropriately regulated, stablecoins could support faster, more efficient, and more inclusive payments options." Anyone else find it biza
by fancyfredbot 5y ago
"If well-designed and appropriately regulated, stablecoins could support faster, more efficient, and more inclusive payments options."
Anyone else find it bizarre that the solution to slow payments might turn out to be distributed ledgers based on proof of work? It feels like the last thing you'd expect - especially since we're starting from a position of managing money through trusted centralised authorities. It's actually really weird we can't settle payments in seconds already.
- mgamache 5y agoAll traditional methods use gatekeepers that control the flow of money. If you can't do what you want with your money is it really yours? The Trustless nature of BTC involves a seeming waste of energy, but you get a lot in return (like ownership of your money).
- fancyfredbot 5y agoSure, but my point was not really about trust. My point is that speed is easier to achieve without Blockchain than with it. It's strange that the centralised solution is slower.
- sneak 5y agoThe centralized, heavily regulated solution is slower. If they could impose all the regulation they want on permissionless, trustless p2p decentralized networks, those would be slow and massively expensive, too. Fortunately, they haven't the power. They can attack the edges (and ultimately every centralized stablecoin can be attacked) but they can't stop, say, uniswap.
- anonporridge 5y agoThe removal of human trust is the source of the speed. It's effectively the automation of slow, human intermediaries in the financial network that allows you to create a programmable money that runs 24/7 and is open and permissionless to boot. And with this programmable network, we can see an explosion of innovation, because nobody needs to wait around for a person to approve anything you want to try.
- baby 5y agoThat’s because the current system is not centralized, the current system is heavily decentralized. It basically is based on a lot of different banks trying to partner with one another. Blockchains are distributed databases, and as such they emulate a centralized server. That’s why it’s faster.
- mgamache 5y agoYou do realize that currency settlement takes 1-2 days, right? "Spot foreign exchange transactions usually settle two business days after the execution date" https://www.investopedia.com/terms/s/settlementdate.asp#:~:text=Most%20stocks%20and%20bonds%20settle,days%20after%20the%20execution%20date https://www.investopedia.com/terms/s/settlementdate.asp#:~:t.... Real-time gross settlement is the instant way of transferring money between banks. Try and send $100K to someone and getting it done same day. Most people don't have access to that system. https://en.wikipedia.org/wiki/Real-time_gross_settlement https://en.wikipedia.org/wiki/Real-time_gross_settlement
- baby 5y ago> The Trustless nature of BTC involves a seeming waste of energy, but you get a lot in return (like ownership of your money). You get that too with proof of stake. Bitcoin really only has the branding of being the first mover, and as such as a strong chance of remaining the digital gold (not a digital currency that’s fast and easy to transact)
- stat 5y agoHave you heard of the lightning network?
- X6S1x6Okd1st 5y agoreally the thing that makes traditional payments slow is chargebacks
- whytaka 5y agoI’m under the impression that we are starting with decentralized ledgers with traditional banking. The problem solved by blockchain is the synchronization/balance of payments between the ledgers by just making everyone track the same unified ledger.
- baby 5y agoYou got it right. Blockchains emulate a centralized server, whereas the current financial system is heavily decentralized and hence slow.
- baby 5y agoI doubt that the solution is based on proof of work. Most modern cryptocurrencies are proof of stake.