4 ms·
Exchanges have nothing to do with blockchains. They are totally a separate thing.
by jacooper 4y ago
Exchanges have nothing to do with blockchains.
They are totally a separate thing.
- chitowneats 4y agoExchanges exist because it turns out blockchain is terribly inefficient for transacting. There's all kinds of legitimate economic activity that's too expensive to do on chain.
- jacooper 4y agoNo they exist because people want to exchange coins on a centralized system, or exchange coins back to government controlled financial system, like a bridge. Blockchain is far from the most efficient system, but you can't deny how it offered a zero-trust way to garantie value.
- the_snooze 4y agoIn other words, blockchain is only useful for solving toy problems totally separate from any real systems or needs.
- jacooper 4y agoYes, toy problems if you lives your entire life in country which has trustable banks, stable governments and the ability to transfer and receive money easily.
- slaw 4y agoIf you live in a country with not stable government, banks and currency like Argentina, you use dollars. Blockchain is for toy problems only.
- jacooper 4y agoIf you can get them. Which you can't if you are under sanctions, and nobody likes that the entire financial world is controlled by single entity.
- imtringued 4y agoRAI exists for all use cases that require a currency with low volatility. Anyone who buys Bitcoin, etc is just a speculator expecting others to increase the value of their cryptocurrency.
- CyberDildonics 4y agoOnly bitcoin has this problem, all other cryptocurrencies have much more throughput than a few kilobytes per second. Even if someone doesn't trust an exchange, they can transfer to them, make trades and transfer back out.
- fred_is_fred 4y agoIn the end it won't matter if everyone loses confidence.
- c7b 4y ago'Totally separate' is basically untrue. For the vast majority of users they're the only on- and off-ramp for major blockchains.