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If you are like me and wonder, "What's the point of a centralized digital currency in economies where almost all financial transactions are effectively digital
by hrunt 3y ago
If you are like me and wonder, "What's the point of a centralized digital currency in economies where almost all financial transactions are effectively digital anyway?" I found this HBR article[0] provides a good overview of how an economy with a CBDC looks different than our current economy, why countries may want that, and why countries may not want that.
[0] https://hbr.org/2021/10/what-if-central-banks-issued-digital-currency https://hbr.org/2021/10/what-if-central-banks-issued-digital...
- deleted 3y ago[deleted]
- e63f67dd-065b 3y agoI read the article, but I don't see why this has to be built on top of a blockchain. What's wrong with plain old relational databases? The currency is issued by the central bank, if the central bank says that this transaction is voided, who's gonna stop them? Blockchains are a solution to byzantine consensus, but with a central authority you can always trust the central bank (in the consensus problem sense of trust), so I don't see what problem gets solved by moving to a slower and worse database.
- nine_k 3y agoA blockchain is a DB that's really hard to forge, unlike your typical RDBMS. I'd say that any Merkle tree with a strong hash function, and an ability to upgrade it, would do. Say, something like git.