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That's a broad stroke. I could say the same thing about crypto exchanges, and even several coins themselves (i.e. can we at least go for a few months without an
by NBJack 4y ago
That's a broad stroke. I could say the same thing about crypto exchanges, and even several coins themselves (i.e. can we at least go for a few months without another 'stable coin' fiasco?).
Whether you use PoW, PoS, or some other consensus algorithm, you will always have some necessary baseline of trust among people operating the network.
- birracerveza 4y ago"Not your keys, not your coins" is being repeated AD NAUSEAM because you should NOT trust crypto exchanges for anything but purchasing the coins and IMMEDIATELY taking the coins out. And the whole point of Proof of Reserve is exactly to avoid another stable coin fiasco. Every single person in crypto knows Tether is bound to explode as it's not backed by anything. With PoR you don't have to trust anyone, as it's cryptographically ensured the money is there. And PoW, PoS are several orders of magnitude harder to exploit than a single centralized exchange. There is still a baseline of trust, but that baseline is beyond what any exchange could possibly reach by virtue of it being public and decentralized. Any malicious activity is much harder to execute and much easier to detect than any malicious activity operated by an opaque black box company. (see: FTX -> Alameda)