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Exchanges exist because it turns out blockchain is terribly inefficient for transacting. There's all kinds of legitimate economic activity that's too expensive
by chitowneats 4y ago
Exchanges 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.