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“While existing private digital currencies have economic flaws which make them volatile, the distributed ledger technology that their payment systems rely on ma
by vasilipupkin 11y ago
“While existing private digital currencies have economic flaws which make them volatile, the distributed ledger technology that their payment systems rely on may have considerable promise,” the Bank of England wrote in February.
So, can someone explain to me, how the distributed ledger ( blockchain ) can be used without necessarily betting on the digital currency itself functioning well ?
- peteretep 11y agoHe's saying that the general concept of digital distributed currency is stronger than he necessarily believes Bitcoin or Litecoin or Dogecoin are.
- jackgavigan 11y agoYou don't need a currency to have a blockchain. A group of counterparties could work together to create their own closed/permissioned blockchain as a decentralised mechanism for recording transactions of, say, securities or real-time gross settlement. This is what companies like Eris Industries and Hyperledger/Digital Asset Holdings are focused on.
- yarrel 11y agoThey can but I'm very wary of systems that don't have Bitcoin's closed loop of economic incentives for maintaining the blockchain.
- martindale 11y agoWithout a token, a blockchain is just a distributed database. These have existed for a very long time.