3 ms·

[I'm likely missing something, but] "EVM-compatible, built on Reth" => they're essentially building a private Ethereum fork with a fancy validator selection p

[I'm likely missing something, but] "EVM-compatible, built on Reth" => they're essentially building a private Ethereum fork with a fancy validator selection process. Couldn't they just get these benefits (predictable fees, fast settlement) by ... running a database between these financial institutions? If Stripe controls the validator set (even indirectly), then ... just a distributed database with extra steps, no?

kristjansson 1y ago
Blockchains are foremost a social technology :)
- sublimefire 1y ago
  It is possible to say that about many technologies, e.g. planes, websites, apps, even games.
- fruitworks 1y ago
  All cryptography is about solving coordination problems
Jarwain 1y ago
It sounds like different levels of influence/control/responsibility to me. Fancy validator selection sounds like the individual financial institutions are still responsible for managing and maintaining their nodes, which gives them a fair (as in balanced not fair as in a lot) amount of liability/responsibility/control. A distributed database, afaik, while geographically distributed, entails more centralization of power/control.
baby 1y ago
Reth is basically a decentralized database, do you mean that they could have done without the EVM?
JeremyNT 1y ago
> Couldn't they just get these benefits (predictable fees, fast settlement) by ... running a database between these financial institutions? Sure, but they wouldn't get all the legal and regulatory bypass benefits of using cryptocurrency.
- alkonaut 1y ago
  Is this like Uber and AirBnB all over? They don't want to be a bank just like Uber doesn't want to be Taxi (means following regulations about insurance, accessibility etc) and AirBnB doesn't want to be a hotel nor a landlord? In some countries, regulators simply point to these companies and say "Ok, so you're driving people around for money thus you are a taxi? How would we not regulate you as a taxi?". And this should apply for a bank or financial institution that tries to avoid banking regulations through technical means, no?
ygouzerh 1y ago
Indeed! After, a distributed database made for financial systems, that could prevent double spending, provide immutability of the data, includes a mechanism of authentication, with some voting power distributed between a quorum of financial of institutions... it's actually exactly what Reth is. To have deployed some blockchain layer 1 nodes, it's actually quite similar than deploying a distributed database. Nowadays, it's actually just easier to fork geth/reth or other engine, and just deploy it. There are so many doc and tooling that can then be reused.

kristjansson 1y ago

Blockchains are foremost a social technology :)

sublimefire 1y ago
It is possible to say that about many technologies, e.g. planes, websites, apps, even games.
fruitworks 1y ago
All cryptography is about solving coordination problems

Jarwain 1y ago

It sounds like different levels of influence/control/responsibility to me. Fancy validator selection sounds like the individual financial institutions are still responsible for managing and maintaining their nodes, which gives them a fair (as in balanced not fair as in a lot) amount of liability/responsibility/control. A distributed database, afaik, while geographically distributed, entails more centralization of power/control.

baby 1y ago

Reth is basically a decentralized database, do you mean that they could have done without the EVM?

JeremyNT 1y ago

> Couldn't they just get these benefits (predictable fees, fast settlement) by ... running a database between these financial institutions? Sure, but they wouldn't get all the legal and regulatory bypass benefits of using cryptocurrency.

alkonaut 1y ago
Is this like Uber and AirBnB all over? They don't want to be a bank just like Uber doesn't want to be Taxi (means following regulations about insurance, accessibility etc) and AirBnB doesn't want to be a hotel nor a landlord? In some countries, regulators simply point to these companies and say "Ok, so you're driving people around for money thus you are a taxi? How would we not regulate you as a taxi?". And this should apply for a bank or financial institution that tries to avoid banking regulations through technical means, no?

ygouzerh 1y ago

Indeed! After, a distributed database made for financial systems, that could prevent double spending, provide immutability of the data, includes a mechanism of authentication, with some voting power distributed between a quorum of financial of institutions... it's actually exactly what Reth is. To have deployed some blockchain layer 1 nodes, it's actually quite similar than deploying a distributed database. Nowadays, it's actually just easier to fork geth/reth or other engine, and just deploy it. There are so many doc and tooling that can then be reused.