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>I think you misunderstand DAI. Saying the point of DAI is to accumulate crypto is like saying the point of a car is to accumulate oil. No, I understand it per

>I think you misunderstand DAI. Saying the point of DAI is to accumulate crypto is like saying the point of a car is to accumulate oil. No, I understand it perfectly. The only purpose of stablecoins is to provide liquidity in the crypto markets for these defi apps where all the trading action happens. They don't have any other purpose and there isn't any other reason to hold them. If it wasn't for the crypto markets you would just be using USD and trading against that directly. Seriously, if you go to the DAI website and you click the big "Use DAI" button it literally just takes you to another crypto investing app. In the future please avoid falling for this trap that web3 tech pushers set. They claim there is "innovation" in the space but almost all of it is just clones of existing financial services with crypto instead of real money. The fact that there's even something call "stablecoins" should demonstrate to you how bogus this all is. The rest of cryptos are so volatile the only way they can make anything resembling a market out of it is by pegging other cryptos to the USD and doing all their trading against that. It's just adding more middlemen to reach the ultimate goal which, as always, is to eventually cash out into USD. Because everybody knows cryptos by themselves are useless for anything besides speculative gambling. >“Centralized into a [decentralized] protocol” is an oxymoron. The benefit of ENS over DNS is that there is no centralized actor that can control, censor and manipulate the namespace. Nope, you're wrong about this in the context of most things implemented in smart contracts. You should be extremely wary of anyone making these claims. Since the "smart contract" is actually just a piece of code, typically the smart contract will have an update mechanism that only a centralized actor can use to upload patches and updates to the code. IIRC this is still how ENS works last time I checked. Like almost everything in crypto, it's a centralized service that the authors lie about and masquerade it as decentralized. Sometimes they'll do an even worse thing by having "governance tokens" that grant you powers to update the smart contract, and someone with a lot of money can just come in and buy all the tokens and take it over. So these "smart contracts" are not really decentralized in any sense. If anyone says "we are making this thing that can't be controlled, censored or manipulated" then that's a massive red flag. There's also the question of why anyone actually wants that. What other industry would this be ok in? If someone had a company that made self-driving cars advertised as being "uncontrollable and uncensorable by driving laws", nobody would want that. We'd recognize that company is actually just selling unstoppable killing machines. So why do people for some bizarre reason think this is a good thing in financial markets where the super-rich already have extreme power consolidation? It makes absolutely no sense at all.

zeroclip 4y ago
This is a long winded way of saying: > They don't have any other purpose and there isn't any other reason to hold them. A claim that is easily refuted. Send 1000 DAI to an individual and they can now hold a USD pegged asset non custodially, without a USD bank account, and transfer any amount to other individuals. Smart contracts can be made immutable and locked. The ENS root multisig owners have locked .eth TLD and have minimal ability to affect any existing .eth ENS name. Since the contracts are open source, if the ENS team went rogue and against the community’s wishes, the protocol could be forked. You can read about it here: https://docs.ens.domains/frequently-asked-questions https://docs.ens.domains/frequently-asked-questions
- only_human 4y ago
  >they can now hold a USD pegged asset non custodially Nope, this is wrong. Any stablecoin is necessarily centralized in order to maintain the peg, in the case of DAI it has a "custodian" in the form of MakerDAO. Look it up, this is how they all work. When they say the words "non-custodial" it's a blatant lie. Everything in crypto has a custodian, some projects are just aggressive about trying to conceal them. >Without a USD bank account, and transfer any amount to other individuals. But this isn't a reason to hold them nor is it an innovation. You could also just do that with moneygram or a similar service, no blockchains required. The only thing you can meaningfully do with this that you can't do with another cash-only service or a bank is to trade other cryptos with it, but that also isn't even for any technical reason. If the banks decided to start exchanging cryptos directly, they could. And that would totally remove the reason for any stablecoins to exist. This is coming back to the same problem with any of these questions like "but what about the web3 tech?" There isn't any new tech here. You just described an existing thing you can do (send money) but with some buzzwords attached. If you dig into it there's never any actual explanation as to why the "web3 tech" makes it better, because it doesn't. So please just don't ask those types of questions, find some better ones. >Smart contracts can be made immutable and locked. Well that isn't how ENS works. And that's a universally bad idea anyway because that means it can never get any upgrades or bug fixes ever again. It's like saying your data center is "decentralized" and therefore better because you encased it in a block of concrete so one can get in to upgrade the servers ever again. Well no, it's not, it's still centralized, you just made it worse for no reason. >if the ENS team went rogue and against the community’s wishes, the protocol could be forked This is exactly how DNS works as well. There is no practical difference, and yet no one forks the DNS root because doing so would be extremely expensive and pointless. Because it's not just about forking the protocol, you also need to fork the whole network and overcome network effects, and that's the actual hard part. ENS offers absolutely nothing to fix this compared to DNS. It's the same thing. I should also point you to this sentence in the FAQ: >The root node is presently owned by a multisig contract, with keys held by trustworthy individuals in the Ethereum community Which is a random, centralized group of people hand picked by the ENS founder, acting similarly to a corporate board of directors. There's absolutely nothing "decentralized" about it in any way. I'm completely serious when I say this whole thing is a blatant scam built on lies. If you find yourself trying to look for positives in this system, you're doing something wrong. It's literally all bad.

zeroclip 4y ago

This is a long winded way of saying: > They don't have any other purpose and there isn't any other reason to hold them. A claim that is easily refuted. Send 1000 DAI to an individual and they can now hold a USD pegged asset non custodially, without a USD bank account, and transfer any amount to other individuals. Smart contracts can be made immutable and locked. The ENS root multisig owners have locked .eth TLD and have minimal ability to affect any existing .eth ENS name. Since the contracts are open source, if the ENS team went rogue and against the community’s wishes, the protocol could be forked. You can read about it here: https://docs.ens.domains/frequently-asked-questions https://docs.ens.domains/frequently-asked-questions

only_human 4y ago
>they can now hold a USD pegged asset non custodially Nope, this is wrong. Any stablecoin is necessarily centralized in order to maintain the peg, in the case of DAI it has a "custodian" in the form of MakerDAO. Look it up, this is how they all work. When they say the words "non-custodial" it's a blatant lie. Everything in crypto has a custodian, some projects are just aggressive about trying to conceal them. >Without a USD bank account, and transfer any amount to other individuals. But this isn't a reason to hold them nor is it an innovation. You could also just do that with moneygram or a similar service, no blockchains required. The only thing you can meaningfully do with this that you can't do with another cash-only service or a bank is to trade other cryptos with it, but that also isn't even for any technical reason. If the banks decided to start exchanging cryptos directly, they could. And that would totally remove the reason for any stablecoins to exist. This is coming back to the same problem with any of these questions like "but what about the web3 tech?" There isn't any new tech here. You just described an existing thing you can do (send money) but with some buzzwords attached. If you dig into it there's never any actual explanation as to why the "web3 tech" makes it better, because it doesn't. So please just don't ask those types of questions, find some better ones. >Smart contracts can be made immutable and locked. Well that isn't how ENS works. And that's a universally bad idea anyway because that means it can never get any upgrades or bug fixes ever again. It's like saying your data center is "decentralized" and therefore better because you encased it in a block of concrete so one can get in to upgrade the servers ever again. Well no, it's not, it's still centralized, you just made it worse for no reason. >if the ENS team went rogue and against the community’s wishes, the protocol could be forked This is exactly how DNS works as well. There is no practical difference, and yet no one forks the DNS root because doing so would be extremely expensive and pointless. Because it's not just about forking the protocol, you also need to fork the whole network and overcome network effects, and that's the actual hard part. ENS offers absolutely nothing to fix this compared to DNS. It's the same thing. I should also point you to this sentence in the FAQ: >The root node is presently owned by a multisig contract, with keys held by trustworthy individuals in the Ethereum community Which is a random, centralized group of people hand picked by the ENS founder, acting similarly to a corporate board of directors. There's absolutely nothing "decentralized" about it in any way. I'm completely serious when I say this whole thing is a blatant scam built on lies. If you find yourself trying to look for positives in this system, you're doing something wrong. It's literally all bad.