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Why be afraid of fraud on blockchain? In the case of DeFi the contracts are technically readable (though EVM is not a good platform for readability; if you can'

Why be afraid of fraud on blockchain? In the case of DeFi the contracts are technically readable (though EVM is not a good platform for readability; if you can't name projects which have fixed this you don't have the right to make fun of "its early"), and those that cannot read contracts for whatever reason are fully aware of the risk they take - when more versed people agree in unison there are no inbuilt scams the laymen can remove their risk. The same applies to blockchain in general. If a new layer-1 is released you audit the code, the token supply, distribution - if its not put out clearly to you its suspicious, otherwise you go through the same process. Those who can read first hand what the risks are can get in early, those who cannot wait. Its not rocket science. If you cared so much about fraud victims, you would drill into new, atomic contracts and protocols, but instead you take the lazy, spiteful approach of calling the whole space a fraud and expect people to believe you because you work with computers. Can you fix my printer while you rationalize your position?

ShamelessC 5y ago
> Why be afraid of fraud on blockchain? In the case of DeFi the contracts are technically readable (though EVM is not a good platform for readability; if you can't name projects which have fixed this you don't have the right to make fun of "its early"), and those that cannot read contracts for whatever reason are fully aware of the risk they take - when more versed people agree in unison there are no inbuilt scams the laymen can remove their risk. Being readable will not stop bugs. This is the history of software engineering. Heartbleed went unnoticed for years, for instance. Putting the onus on the participants to verify a bug-free smart contract is kind of absurd if you ask me. It's just not possible and definitely won't scale.
Comevius 5y ago
You can audit everything yourself, and if everyone could and would there would be much less opportunities for bad behavior. But that's why trust was invented. Trustless means you have to do everything yourself. In society there are incentives for example for a bakery to not poison you. The obvious one is the financial gain, reputation, but also the threat from not following laws, regulations. There are health inspections and so on. Even with that a lot of things a bakery sells is not healthy for you. It doesn't matter how smart the tools are, if the only incentive is to defraud people, which is how the crypto economy works today. It's all lions and hyenas, and there is no algorithm to fix that, if anything decentralized consensus makes it easier for people to obfuscate and shrug responsibility.

ShamelessC 5y ago

> Why be afraid of fraud on blockchain? In the case of DeFi the contracts are technically readable (though EVM is not a good platform for readability; if you can't name projects which have fixed this you don't have the right to make fun of "its early"), and those that cannot read contracts for whatever reason are fully aware of the risk they take - when more versed people agree in unison there are no inbuilt scams the laymen can remove their risk. Being readable will not stop bugs. This is the history of software engineering. Heartbleed went unnoticed for years, for instance. Putting the onus on the participants to verify a bug-free smart contract is kind of absurd if you ask me. It's just not possible and definitely won't scale.

Comevius 5y ago

You can audit everything yourself, and if everyone could and would there would be much less opportunities for bad behavior. But that's why trust was invented. Trustless means you have to do everything yourself. In society there are incentives for example for a bakery to not poison you. The obvious one is the financial gain, reputation, but also the threat from not following laws, regulations. There are health inspections and so on. Even with that a lot of things a bakery sells is not healthy for you. It doesn't matter how smart the tools are, if the only incentive is to defraud people, which is how the crypto economy works today. It's all lions and hyenas, and there is no algorithm to fix that, if anything decentralized consensus makes it easier for people to obfuscate and shrug responsibility.