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> - Instead of 4-7% payment processing fees, it can be effectively zero[1] There are disadvantages to using Layer 2 of a blockchain, and you are ignoring the c
by jowea 3y ago
> - Instead of 4-7% payment processing fees, it can be effectively zero[1]
There are disadvantages to using Layer 2 of a blockchain, and you are ignoring the costs of on-boarding and off-boarding from cryptocurrency.
> - Users of the platform could be given more control such as forking the OSS protocol if the core devs go off the rails or try to extract more than what users feel it’s worth. This is especially interesting given the recent polarizing changes to Patreon and Bandcamp’s business structures.
In this case you're speaking of doing Patreon on the blockchain, not merely using cryptocurrency transactions? How would that work and how wouldn't it be cheaper and easier to do with a public, possibly federated, server running a FOSS Patreon software?
> - Settlement times can be measured in minutes or hours rather than days, weeks, or months.
Are settlement times going down with FedNow? And even CC transactions take seconds, do the content creators care that much about getting the money immediately and isn't that a greater fraud risk?
> - Anonymity and local-first data privacy could be achieved, at least theoretically. Practically, very few L2s have yet to reach complete privacy using zero knowledge proofs and related cryptography.
I admit to not being familiar with the situation but aren't all transactions public on the blockchain? How that can be anonymous unless you're using something like Monero? And I'm not sure what local-first data there is, you meaning having the paywalled content downloaded to your device if you subscribe?
> - Mitigating centralizing factors such as Patreon’s control over what is a morally acceptable revenue stream. Content like NSFW art might be currently acceptable, but this could change on a dime if the company decides to change its values.
What about illegally acceptable revenue streams? How would such a platform stop being banned due to illegal content?
- mattdesl 3y ago> There are disadvantages to using Layer 2 of a blockchain, and you are ignoring the costs of on-boarding and off-boarding from cryptocurrency. Yes, it's not a panacea, but has the potential to be far lower than the current status quo. > In this case you're speaking of doing Patreon on the blockchain, not merely using cryptocurrency transactions? How would that work and how wouldn't it be cheaper and easier to do with a public, possibly federated, server running a FOSS Patreon software? It can be both; using smart contracts to facilitate payments and identity, and some form of federated or decentralized protocol for communication and discovery (e.g. Farcaster). > Are settlement times going down with FedNow? And even CC transactions take seconds, do the content creators care that much about getting the money immediately and isn't that a greater fraud risk? Not everybody lives in the USA, and yes creators would likely appreciate lowering payout schedules from days to hours. > I admit to not being familiar with the situation but aren't all transactions public on the blockchain? Yes, like Monero but with smart contracts and verifiable computation via ZK-SNARKs. It is possible, but in its infancy: see Aztec and Aleo. > What about illegally acceptable revenue streams? How would such a platform stop being banned due to illegal content? The primary hosts can choose not to serve the illegal content; it would redirect the behaviour to alternative platforms. Similar to a popular Mastodon server choosing not to allow NSFW, but other servers might allow NSFW.