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The value of nativeness combined with a totally neutral execution environment is that money can be directly controlled by software, with no practical human over

The value of nativeness combined with a totally neutral execution environment is that money can be directly controlled by software, with no practical human override. Suddenly the cost and risk of transactions goes down, as I don’t need to worry about whether I will get paid, or whether the intermediary actually handling the money will arbitrarily decide to freeze my account. Obviously this is a double edged sword; having no human override is actually a very bad thing for many things. You can code in human overrides of course, but they are transparent to all parties. When you make a bank transfer or a PayPal transaction, it’s 100% opaque. The terms are not truly binding and it can be reverted or altered for any or no reason. I’m not arguing this is the reason for valuations currently, but I find it pretty surprising how many people can’t or won’t understand the value of a neutral execution environment for financial transactions. It is not something that exists elsewhere.

DougN7 5y ago
I’m in my 50’s and not getting paid or having account get frozen has never happened to me during my entire life, and is not something I’m concerned about. If would be cool if defi was solving an actual problem most people have, but I’m still not seeing it.
- thebean11 5y ago
  1. It’s actually pretty common, my PayPal account is frozen for no reason, I would need to send passport scans to unlock it which I won’t do. 2. We aren’t necessarily the target market. Think more large investment / B2B transactions not consumer payments.
bccdee 5y ago
> When you make a bank transfer or a PayPal transaction, it’s 100% opaque. The terms are not truly binding and it can be reverted or altered for any or no reason. Yeah, they can tell that to my lawyer. Banks don't make the rules — regulators do, and I can file suit to have a judge enforce those rules. If my money disappears, I can hold my bank to account. But a judge can't rewrite the blockchain, so cryptocurrency has become a safe haven for fraud. You've got it exactly backwards: It's blockchain-based banking that puts customers at risk of predation. > I find it pretty surprising how many people can’t or won’t understand the value of a neutral execution environment for financial transactions If it had value for banks, banks would be using it. If it has value for customers, then tell me: As a customer, which desirable guarantees does blockchain provide me that banking regulations don't?

DougN7 5y ago

I’m in my 50’s and not getting paid or having account get frozen has never happened to me during my entire life, and is not something I’m concerned about. If would be cool if defi was solving an actual problem most people have, but I’m still not seeing it.

thebean11 5y ago
1. It’s actually pretty common, my PayPal account is frozen for no reason, I would need to send passport scans to unlock it which I won’t do. 2. We aren’t necessarily the target market. Think more large investment / B2B transactions not consumer payments.

bccdee 5y ago

> When you make a bank transfer or a PayPal transaction, it’s 100% opaque. The terms are not truly binding and it can be reverted or altered for any or no reason. Yeah, they can tell that to my lawyer. Banks don't make the rules — regulators do, and I can file suit to have a judge enforce those rules. If my money disappears, I can hold my bank to account. But a judge can't rewrite the blockchain, so cryptocurrency has become a safe haven for fraud. You've got it exactly backwards: It's blockchain-based banking that puts customers at risk of predation. > I find it pretty surprising how many people can’t or won’t understand the value of a neutral execution environment for financial transactions If it had value for banks, banks would be using it. If it has value for customers, then tell me: As a customer, which desirable guarantees does blockchain provide me that banking regulations don't?