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If someone uses your credit card or other account info to withdraw cash then the bank cannot reverse that, similarly to crypto transactions. The protection is h

by spyder 5y ago

If someone uses your credit card or other account info to withdraw cash then the bank cannot reverse that, similarly to crypto transactions. The protection is having an insurance fund to reimburse affected clients. Crypto projects can do the same thing but they rarely do it yet. There are projects like nexusmutual.io where you can get covered against smart contract failure & exchange hacks. But even if you would be more protected against frauds in crypto, it has a lot to improve to get closer to it's promises because it's still far from it.

BoppreH 5y ago
That's a really cool project with its democratic claim assessment, and I admire their transparency. But as with everything related to safety in crypto, today it's still based on optimism. For example, today the 5-member Advisory Board has unilateral power to change the contract as they see fit[1], and only the smart contracts have been audited, not the organization itself[2]. The only information about this all-powerful Advisory Board is on the home page, and I'm forced to take that at face value. What happens if I put my money there, the board runs away with it, and I try to sue them only to find out that these five people don't exist, or are not related to the project? This is far from the basic security level of any traditional financial institution. Again, I have major respect for this team. The service is useful, and the documentation is honest and comprehensive. But a blockchain plus this insurance does not make a safe consumer space. [1] https://nexusmutual.gitbook.io/docs/users/understanding-nexus-mutual/governance#decentralisation-trade-offs https://nexusmutual.gitbook.io/docs/users/understanding-nexu... [2] https://nexusmutual.gitbook.io/docs/welcome/audits-and-security https://nexusmutual.gitbook.io/docs/welcome/audits-and-secur...

by spyder 5y ago

BoppreH 5y ago

That's a really cool project with its democratic claim assessment, and I admire their transparency. But as with everything related to safety in crypto, today it's still based on optimism. For example, today the 5-member Advisory Board has unilateral power to change the contract as they see fit[1], and only the smart contracts have been audited, not the organization itself[2]. The only information about this all-powerful Advisory Board is on the home page, and I'm forced to take that at face value. What happens if I put my money there, the board runs away with it, and I try to sue them only to find out that these five people don't exist, or are not related to the project? This is far from the basic security level of any traditional financial institution. Again, I have major respect for this team. The service is useful, and the documentation is honest and comprehensive. But a blockchain plus this insurance does not make a safe consumer space. [1] https://nexusmutual.gitbook.io/docs/users/understanding-nexus-mutual/governance#decentralisation-trade-offs https://nexusmutual.gitbook.io/docs/users/understanding-nexu... [2] https://nexusmutual.gitbook.io/docs/welcome/audits-and-security https://nexusmutual.gitbook.io/docs/welcome/audits-and-secur...