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> technology does not solve technical problems that havent been solved better Critics like Diehl repeat this often, but without ever referencing the solutions.

> technology does not solve technical problems that havent been solved better Critics like Diehl repeat this often, but without ever referencing the solutions. What non-blockchain solution solves the double spend problem when transferring digital assets in a peer-to-peer network? Or, in the case of Ethereum, providing solutions to general-purpose decentralized computation and state (rather than only peer-to-peer payments) with such strong public consensus? I would love to see the following succinctly solved by a non-crypto and non-blockchain solution: - User A holds digital asset X (such as a valuable domain name "xyz.eth") and User B holds digital asset Y (such as a valuable sum of stablecoin tokens) and these users wish to exchange them in a single public + cryptographically verifiable transaction (i.e. atomic swap), without relying on the trust (and for-profit services) of a third-party escrow agent.

tkfu 5y ago
You're being willfully obtuse here. > What non-blockchain solution solves the double spend problem when transferring digital assets in a peer-to-peer network? Literally any trusted central authority or database. > Or, in the case of Ethereum, providing solutions to general-purpose decentralized computation and state (rather than only peer-to-peer payments) with such strong public consensus? You haven't actually stated a problem here, you've described a solution in search of a problem. > User A holds digital asset X (such as a valuable domain name "xyz.eth") You're mentioning a .eth domain name being bought with cryptocurrency as an example, which is entirely circular. "Hurr durr, betcha can't swap one blockchain thing (.eth domain) for another blockchain thing (cryptocurrency tokens) without using a blockchain" isn't as strong an argument as you think it is. If we were talking about a .com domain name, no blockchain in the world will help you with that transaction.
- mattdesl 5y ago
  As usual, “just trust Amazon or Google” which is centrally owned, and not peer-to-peer (distributed/decentralized), and not an answer to my question. > You're mentioning a .eth domain name being bought with cryptocurrency as an example, which is entirely circular. "Hurr durr, betcha can't swap one blockchain thing (.eth domain) for another blockchain thing (cryptocurrency tokens) without using a blockchain" isn't as strong an argument as you think it is. If we were talking about a .com domain name, no blockchain in the world will help you with that transaction. Your argument feels in bad faith, but I’ll bite: “.eth” and ENS is a valuable construct for those transacting in the network. These assets do have clear market value, even if you personally feel they shouldn’t.
  - trinovantes 5y ago
    So how do you coordinate this so called decentralized transaction? Over the internet through SSL certs that are centrally signed? You're still putting blind trust in something.
    - mattdesl 5y ago
      Transactions are broadcast with RPC. Once accepted and written to the ledger (ie: after a number of confirmations), you can verify the state of the transaction via your own local node. It is impossible to completely remove the need for trust. We trust that our computers work as expected, that our modems and routers are not compromised, that RPC endpoints and software is running as expected, that the internet infrastructure in our country is sending messages correctly. The blockchain isn’t a catch-all solution to our need to trust things in life. But it does allow us to, say, record and alter global state without placing it in the control of a single centralized intermediary.
      - trinovantes 5y ago
        You trust the private companies/individuals making your hardware and protecting your communications but suddenly trusting a private escrow is heresy? Seems like a weird double standard. > record and alter global state without placing it in the control of a single centralized intermediary Paxos solved this in the 90s
        mattdesl 5y ago
        A centralized escrow is not heresy; it involves a different set of trade-offs. In some cases the decentralized escrow might be more appealing. To go back to my original example of a domain transfer, the exchange can occur in a matter of seconds or minutes within a blockchain, rather than 1 to 20 business days with escrow.com. Never heard of Paxos, if it could achieve the same problems I've outlined earlier, I'd be curious to see it implemented.
        5y ago
- jomjomv 5y ago
  > Literally any trusted central authority or database. But they said peer-to-peer network.
syrgian 5y ago
Wait, are you saying that scenario has been solved (or is solvable in the future) by blockchain? Where can I learn more? Is eth even a real TLD?
- swalsh 5y ago
  .eth is a TLD for crypto addresses (the system is called ENS). Instead of saying, send it to 0x827DCAB38F00624466A99211e9c5a48b9D6Ec14D or whatever I can say "send it to myname.eth". The ENS is an NFT, so all the NFT infrastructure can be used to manage it. NFT's are generic digital assets so any marketplace can do the swap. The major downside is that gas on eth is SUPER expensive, when I regestered my ENS name, it cost $5 for the name, and $200 for gas. On the other hand, ETH is an obsolete chain (there is a v2 coming, and L2's are starting to come on, but V1 is obsolete... lets be honest), and some new more modern chains solve the problem better. I have a .AVAX name (not fully deployed yet) which cost $15 for the name (which has a weird public notice period thing, kind of interesting) and $.15 for gas. Again, it's an NFT, so I can use any of the numerous marketplaces to buy and sell it.
tsimionescu 5y ago
> User A holds digital asset X (such as a valuable domain name "xyz.eth") and User B holds digital asset Y (such as a valuable sum of stablecoin tokens) and these users wish to exchange them in a single public + cryptographically verifiable transaction (i.e. atomic swap), without relying on the trust (and for-profit services) of a third-party escrow agent. OK, how do they do this? Let's say X has 1M gold in World of Warcraft, and Y has 100M Gil in Final Fantasy XIV. How can X and Y use a blockchain to exchange these atomically?
- mattdesl 5y ago
  If both assets are defined by the same blockchain protocol, a contract can be written that provides both users the ability to deposit the two assets into it. Only once both assets have been deposited will the atomic swap occur. And at any point before this, a deposit could be safely withdrawn (ie: if other party backs out of deal). Edit: if your question is “how does this technically look in practice”, here is an example: [1] [1] https://github.com/niftyhorde/swap.kiwi/blob/master/contracts/SwapKiwi.sol https://github.com/niftyhorde/swap.kiwi/blob/master/contract...
  - tsimionescu 5y ago
    You claimed that blockchains solve the problem of atomically transferring digital assets. I gave an example of two digital assets I may like to transfer. Please tell me how Ethereum solves the problem of exchanging WoW gold for FF14 Gil in a trust less manner. The problem of transferring digital goods controlled by the same entity in a trust less manner is trivial and solved by many technologies predating Bitcoin. I can already trustlessly sell a piece of copper in World of Warcraft for gold without involving any other third party.
    - mattdesl 5y ago
      This is a pretty stupid argument; WoW and FF14 gold are not assets defined on the network. The goal of Ethereum is to record Ethereum-based assets (e.g. ERC20, ERC721), not to record the exchange of every asset on the web. > I can already trustlessly sell a piece of copper in World of Warcraft for gold without involving any other third party. In this case the third party is Blizzard Entertainment, who can control the state and data.
thomashabets2 5y ago
> What non-blockchain solution solves the double spend problem when transferring digital assets in a peer-to-peer network? Or, in the case of Ethereum, providing solutions to general-purpose decentralized computation and state (rather than only peer-to-peer payments) with such strong public consensus? That question sounds like an XY problem. https://en.wikipedia.org/wiki/XY_problem https://en.wikipedia.org/wiki/XY_problem
igorkraw 5y ago
And believers always pull of this subtle shift in frame: you bring in trust-less peer to peer decentralised networks, and of course there's no other solution, because it's a setting invented by the same people who came up with cryptocurrency. The rest of the world relaxes the trust-less assumption and talks about Web of Trust, about decentralised roots of trust, federation etc. And this is a rhetorical technique: When we talk about economics, we talk about business or human problems. But the trustless-online-decentralised-ledger problem is a technical one. So the GP was saying "there is no business problem that crypto solves that hasn't been solved in a better way already. And then the crypto-bros come in and say "nuh-uh! If you for whatever reason want to run digital assets on physical infrastructure that needs to be maintained off chain without trusting anyone (say, the person the network depends on for maintaining the power infrastructure) then this is the only solution!". YES! Well done. This is even useful, in a horrible hellscape where dog eats dog, everyone carries their own portable nuclear reactor and uses unstoppable point to point laser communication to run the internet and we forego all of the efficiency gains offered by using social consensus and democratic decision making to build webs of trust and centralised infrastructure with checks and balances (for example, by having the root certificates expire and be re-legitimised by some social ceremony repeatedly...say in an election). But in the real world, at some point everyone wants to build a society, put some basic trust down and improve living standards. And while people like Putin and the Kims and warlords still alive can fuck this up 1. They generally only survive because they are leeching of the more functional parts of society which uses trust (not unlike crypto with its Ponzi structure) 2. Crypto won't save you from them because they'll physically take away your electricity and/or torture you to get your keys So what problems that aren't technical toy problems but real business and coordination problems in realistic settings (remember, if you have a state you trust to protect your private property rights, you can probably also use that to run the root certificate and organise the ledger) does crypto solve again?
- mattdesl 5y ago
  Consider a simple answer: my ENS domain is one of the few digital assets I own (and have “digital ownership” over) that is not inextricably linked to a single corporately-owned user account (that ultimately has full control over the asset). Perhaps you do not see a value in that, or do not feel the risks outweigh this benefit, which is fine. We are acting on a different set of interests.
Marazan 5y ago
Yes, Blockchain does indeed solve the problem it creates.
- mattdesl 5y ago
  These problems (the desire to find peer-to-peer systems to transfer and record digital assets) predate blockchain/crypto.
  - Marazan 4y ago
    And they were trivially solved by trust.
    - mattdesl 4y ago
      Trusty ol' FAANG.
      - nicbou 4y ago
        What does FAANG have to do with exchanging money?
        mattdesl 4y ago
        “We don’t need peer-to-peer digital assets when we can just trust [insert major tech corporation]” tends to be the common answer to my earlier question a couple comments up.
        nicbou 4y ago
        You're naming tech companies. We're talking about heavily regulated banks.
        mattdesl 4y ago
        My original comment[1] is responding to the notion that crypto's technical problems are better solved by non-blockchain alternatives. The most common alternative is placing trust in an Amazon or Google database, or another tech corporation like Namecheap or escrow.com (for domain exchanges, as in my example). Banks do not typically manage domain name exchanges. [1] https://news.ycombinator.com/item?id=31190423 https://news.ycombinator.com/item?id=31190423

tkfu 5y ago

You're being willfully obtuse here. > What non-blockchain solution solves the double spend problem when transferring digital assets in a peer-to-peer network? Literally any trusted central authority or database. > Or, in the case of Ethereum, providing solutions to general-purpose decentralized computation and state (rather than only peer-to-peer payments) with such strong public consensus? You haven't actually stated a problem here, you've described a solution in search of a problem. > User A holds digital asset X (such as a valuable domain name "xyz.eth") You're mentioning a .eth domain name being bought with cryptocurrency as an example, which is entirely circular. "Hurr durr, betcha can't swap one blockchain thing (.eth domain) for another blockchain thing (cryptocurrency tokens) without using a blockchain" isn't as strong an argument as you think it is. If we were talking about a .com domain name, no blockchain in the world will help you with that transaction.

mattdesl 5y ago
As usual, “just trust Amazon or Google” which is centrally owned, and not peer-to-peer (distributed/decentralized), and not an answer to my question. > You're mentioning a .eth domain name being bought with cryptocurrency as an example, which is entirely circular. "Hurr durr, betcha can't swap one blockchain thing (.eth domain) for another blockchain thing (cryptocurrency tokens) without using a blockchain" isn't as strong an argument as you think it is. If we were talking about a .com domain name, no blockchain in the world will help you with that transaction. Your argument feels in bad faith, but I’ll bite: “.eth” and ENS is a valuable construct for those transacting in the network. These assets do have clear market value, even if you personally feel they shouldn’t.
- trinovantes 5y ago
  So how do you coordinate this so called decentralized transaction? Over the internet through SSL certs that are centrally signed? You're still putting blind trust in something.
  - mattdesl 5y ago
    Transactions are broadcast with RPC. Once accepted and written to the ledger (ie: after a number of confirmations), you can verify the state of the transaction via your own local node. It is impossible to completely remove the need for trust. We trust that our computers work as expected, that our modems and routers are not compromised, that RPC endpoints and software is running as expected, that the internet infrastructure in our country is sending messages correctly. The blockchain isn’t a catch-all solution to our need to trust things in life. But it does allow us to, say, record and alter global state without placing it in the control of a single centralized intermediary.
    - trinovantes 5y ago
      You trust the private companies/individuals making your hardware and protecting your communications but suddenly trusting a private escrow is heresy? Seems like a weird double standard. > record and alter global state without placing it in the control of a single centralized intermediary Paxos solved this in the 90s
      - mattdesl 5y ago
        A centralized escrow is not heresy; it involves a different set of trade-offs. In some cases the decentralized escrow might be more appealing. To go back to my original example of a domain transfer, the exchange can occur in a matter of seconds or minutes within a blockchain, rather than 1 to 20 business days with escrow.com. Never heard of Paxos, if it could achieve the same problems I've outlined earlier, I'd be curious to see it implemented.
        5y ago
jomjomv 5y ago
> Literally any trusted central authority or database. But they said peer-to-peer network.

syrgian 5y ago

Wait, are you saying that scenario has been solved (or is solvable in the future) by blockchain? Where can I learn more? Is eth even a real TLD?

swalsh 5y ago
.eth is a TLD for crypto addresses (the system is called ENS). Instead of saying, send it to 0x827DCAB38F00624466A99211e9c5a48b9D6Ec14D or whatever I can say "send it to myname.eth". The ENS is an NFT, so all the NFT infrastructure can be used to manage it. NFT's are generic digital assets so any marketplace can do the swap. The major downside is that gas on eth is SUPER expensive, when I regestered my ENS name, it cost $5 for the name, and $200 for gas. On the other hand, ETH is an obsolete chain (there is a v2 coming, and L2's are starting to come on, but V1 is obsolete... lets be honest), and some new more modern chains solve the problem better. I have a .AVAX name (not fully deployed yet) which cost $15 for the name (which has a weird public notice period thing, kind of interesting) and $.15 for gas. Again, it's an NFT, so I can use any of the numerous marketplaces to buy and sell it.

tsimionescu 5y ago

> User A holds digital asset X (such as a valuable domain name "xyz.eth") and User B holds digital asset Y (such as a valuable sum of stablecoin tokens) and these users wish to exchange them in a single public + cryptographically verifiable transaction (i.e. atomic swap), without relying on the trust (and for-profit services) of a third-party escrow agent. OK, how do they do this? Let's say X has 1M gold in World of Warcraft, and Y has 100M Gil in Final Fantasy XIV. How can X and Y use a blockchain to exchange these atomically?

mattdesl 5y ago
If both assets are defined by the same blockchain protocol, a contract can be written that provides both users the ability to deposit the two assets into it. Only once both assets have been deposited will the atomic swap occur. And at any point before this, a deposit could be safely withdrawn (ie: if other party backs out of deal). Edit: if your question is “how does this technically look in practice”, here is an example: [1] [1] https://github.com/niftyhorde/swap.kiwi/blob/master/contracts/SwapKiwi.sol https://github.com/niftyhorde/swap.kiwi/blob/master/contract...
- tsimionescu 5y ago
  You claimed that blockchains solve the problem of atomically transferring digital assets. I gave an example of two digital assets I may like to transfer. Please tell me how Ethereum solves the problem of exchanging WoW gold for FF14 Gil in a trust less manner. The problem of transferring digital goods controlled by the same entity in a trust less manner is trivial and solved by many technologies predating Bitcoin. I can already trustlessly sell a piece of copper in World of Warcraft for gold without involving any other third party.
  - mattdesl 5y ago
    This is a pretty stupid argument; WoW and FF14 gold are not assets defined on the network. The goal of Ethereum is to record Ethereum-based assets (e.g. ERC20, ERC721), not to record the exchange of every asset on the web. > I can already trustlessly sell a piece of copper in World of Warcraft for gold without involving any other third party. In this case the third party is Blizzard Entertainment, who can control the state and data.

thomashabets2 5y ago

> What non-blockchain solution solves the double spend problem when transferring digital assets in a peer-to-peer network? Or, in the case of Ethereum, providing solutions to general-purpose decentralized computation and state (rather than only peer-to-peer payments) with such strong public consensus? That question sounds like an XY problem. https://en.wikipedia.org/wiki/XY_problem https://en.wikipedia.org/wiki/XY_problem

igorkraw 5y ago

And believers always pull of this subtle shift in frame: you bring in trust-less peer to peer decentralised networks, and of course there's no other solution, because it's a setting invented by the same people who came up with cryptocurrency. The rest of the world relaxes the trust-less assumption and talks about Web of Trust, about decentralised roots of trust, federation etc. And this is a rhetorical technique: When we talk about economics, we talk about business or human problems. But the trustless-online-decentralised-ledger problem is a technical one. So the GP was saying "there is no business problem that crypto solves that hasn't been solved in a better way already. And then the crypto-bros come in and say "nuh-uh! If you for whatever reason want to run digital assets on physical infrastructure that needs to be maintained off chain without trusting anyone (say, the person the network depends on for maintaining the power infrastructure) then this is the only solution!". YES! Well done. This is even useful, in a horrible hellscape where dog eats dog, everyone carries their own portable nuclear reactor and uses unstoppable point to point laser communication to run the internet and we forego all of the efficiency gains offered by using social consensus and democratic decision making to build webs of trust and centralised infrastructure with checks and balances (for example, by having the root certificates expire and be re-legitimised by some social ceremony repeatedly...say in an election). But in the real world, at some point everyone wants to build a society, put some basic trust down and improve living standards. And while people like Putin and the Kims and warlords still alive can fuck this up 1. They generally only survive because they are leeching of the more functional parts of society which uses trust (not unlike crypto with its Ponzi structure) 2. Crypto won't save you from them because they'll physically take away your electricity and/or torture you to get your keys So what problems that aren't technical toy problems but real business and coordination problems in realistic settings (remember, if you have a state you trust to protect your private property rights, you can probably also use that to run the root certificate and organise the ledger) does crypto solve again?

mattdesl 5y ago
Consider a simple answer: my ENS domain is one of the few digital assets I own (and have “digital ownership” over) that is not inextricably linked to a single corporately-owned user account (that ultimately has full control over the asset). Perhaps you do not see a value in that, or do not feel the risks outweigh this benefit, which is fine. We are acting on a different set of interests.

Marazan 5y ago

Yes, Blockchain does indeed solve the problem it creates.

mattdesl 5y ago
These problems (the desire to find peer-to-peer systems to transfer and record digital assets) predate blockchain/crypto.
- Marazan 4y ago
  And they were trivially solved by trust.
  - mattdesl 4y ago
    Trusty ol' FAANG.
    - nicbou 4y ago
      What does FAANG have to do with exchanging money?
      - mattdesl 4y ago
        “We don’t need peer-to-peer digital assets when we can just trust [insert major tech corporation]” tends to be the common answer to my earlier question a couple comments up.
        nicbou 4y ago
        You're naming tech companies. We're talking about heavily regulated banks.
        mattdesl 4y ago
        My original comment[1] is responding to the notion that crypto's technical problems are better solved by non-blockchain alternatives. The most common alternative is placing trust in an Amazon or Google database, or another tech corporation like Namecheap or escrow.com (for domain exchanges, as in my example). Banks do not typically manage domain name exchanges. [1] https://news.ycombinator.com/item?id=31190423 https://news.ycombinator.com/item?id=31190423