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I'm not sure what would be the reason to think blockchain will change anything in the fraud department. It's like expecting electric cars will cure cancer. I me
by smsm42 4y ago
I'm not sure what would be the reason to think blockchain will change anything in the fraud department. It's like expecting electric cars will cure cancer. I mean, maybe some people have weird expectations, but I work in a crypto-adjacent company and it is true that a lot of people misunderstand crypto and blockchains, but I haven't encountered many that would expect it to magically stop fraud.
- gregjor 4y agoMaybe because Satoshi specifically mentioned preventing fraud in the original Bitcoin whitepaper. Blockchain/crypto enthusiasts frequently tout the supposed transparency of an immutable public ledger as a way to prevent fraud. I know they refer to the kind of fraud and financial corruption that led to the 2008 bank meltdown, not necessarily sellers defrauding buyers of NFTs, but the FTX crash seems more Lehman Brothers scale than "this beanie baby is fake" scale.
- smsm42 4y agoLehman was a legit business that got caught with some risky bets and, for various reasons, it was decided to let it go down. That may be analogous to the situation with Alameda (minus the drugs) - but FTX is more like a cross between Madoff (affinity fraud) and degenerate gambling.