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> I do not understand why people who have legal intentions would want to be part of the crypto economy. There's nothing but more risks with zero benefits. I ag
by FanaHOVA 5y ago
> I do not understand why people who have legal intentions would want to be part of the crypto economy. There's nothing but more risks with zero benefits.
I agree 100% on the risk, and my main problem with it is the avg person getting caught up in it. But at the same time, you see all the "PayPal froze my funds" posts, etc, so obviously the current system is flawed in its own way.
You could imagine a future in which PayPal is a layer on top of Ethereum (or any other L1 chain) and provides reversibility, etc, for a fee, but at the same time the user also has the freedom to eject out of it and take all the funds with them. The maxi "everything must be 100% decentralized" take is a bit naive, so hopefully these accidents help us move in the right direction.
I think long term we might have a lot of the same guard rails we have today, but they'll just be re-built from scratch in a digital-first way, rather than what we currently have.
- tornato7 5y agoI agree. The crypto industry has made a lot of progress toward securing private keys, with another 5-10 years of cryptography I think it will be a somewhat 'solved problem', thereby allowing companies like PayPal to offer their own custodial / layer 2 services with minimal risk. Institutional-quality digital asset custody and signing was basically non-existent until Fireblocks launched just over two years ago, and there is still a lot of progress to be made on cryptography primitives and infrastructure best practices.