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Yeah I agree. Though seems pedantic to imply blockchains aren't useful because they're "just" composed of cryptographic primitives. Shared state under potential
by rodiger 5y ago
Yeah I agree. Though seems pedantic to imply blockchains aren't useful because they're "just" composed of cryptographic primitives. Shared state under potentially-adversarial conditions isn't an easy thing to achieve, and has usecases for which other P2P networks aren't sufficient.
- wizzwizz4 5y agoI'm sure blockchains are useful sometimes. I have never seen such a case in real life, though. (Until a few months ago, I was still looking.)
- rodiger 5y agoI don't think they're useful to most people right now (or maybe ever), but there are some cool things in DeFi that are normally reserved for large institutions/not possible in traditional finance: 1. Being a liquidity provider to get a cut of exchange fees (https://docs.uniswap.org/protocol/concepts/V3-overview/concentrated-liquidity https://docs.uniswap.org/protocol/concepts/V3-overview/conce...) 2. Flashloans for arbitrage (https://aave.com/flash-loans/ https://aave.com/flash-loans/) 3. Autonomous governance for protocol updates (https://compound.finance/governance https://compound.finance/governance) 4. Decentralized perpetual contracts (https://www.perp.com/ https://www.perp.com/) 5. Decentralized mutual insurance (https://nexusmutual.io/ https://nexusmutual.io/) Many/all of these depend on speculation to derive value, but there's added value nonetheless