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> In other words, this is a fancier version of the kind of attestation that Tether makes, the ones that leave loopholes you can drive dump trucks through. 100%

> In other words, this is a fancier version of the kind of attestation that Tether makes, the ones that leave loopholes you can drive dump trucks through. 100% and this just drives me bonkers. I'm not entirely unsympathetic to wanting to avoid financial regulation, like while I disagree it's a good idea, I can understand wanting to build a system that is built on math and not people. Fine. But isn't the whole point of crypto radical transparency? As in: you know at all times where all the coins are and the details of every transaction that has ever occurred? Shouldn't this meet 100% of your auditing needs? Why are audits even useful? Well, they're really helpful if you want to run a shell game off chain, but still assure customers that you're not gambling with their money so they keep giving you more of it. Like, arguing in good faith here, this is just a worst of both worlds situation. You have an extremely slow financial transaction system that you still have to hand audit.

throwup 4y ago
You're 100% right, and that bad feeling you have is a sign that you understand where both sides are coming from. This is why so many people say "not your keys, not your coin". Giving up control of your keys is never the best option, but if that's what you choose to do, audits might help you make the least bad choice out of those available.
pa7x1 4y ago
You are absolutely right, but this highlights that what you are seeing these days with the failure of FTX and its associated fall-out is not a failure of cryptocurrencies or blockchain or any statement of its merits or demerits. It's a failure of traditional finance in an unregulated industry. This highlights how traditional finance is incredibly brittle and requires very strict regulation to have any semblance of resilience, when not failing anyway à la 2008.

throwup 4y ago

You're 100% right, and that bad feeling you have is a sign that you understand where both sides are coming from. This is why so many people say "not your keys, not your coin". Giving up control of your keys is never the best option, but if that's what you choose to do, audits might help you make the least bad choice out of those available.

pa7x1 4y ago

You are absolutely right, but this highlights that what you are seeing these days with the failure of FTX and its associated fall-out is not a failure of cryptocurrencies or blockchain or any statement of its merits or demerits. It's a failure of traditional finance in an unregulated industry. This highlights how traditional finance is incredibly brittle and requires very strict regulation to have any semblance of resilience, when not failing anyway à la 2008.