whatisweb3

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91.
by whatisweb3 4y ago
the idea of web3 isn’t that everybody runs their own server. It’s that everybody is using a shared source of truth - the blockchain - that is not centrally owned. So for that data, you are not locked into any platform even if you never self
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by whatisweb3 4y ago
Stablecoins are used for a variety of reasons. Using them to skirt taxes or laws is a poor choice. USDC for example will freeze funds at the request of authorities, Circle's goal is to design a regulatory compliant stablecoin. A user m
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by whatisweb3 4y ago
SEC uses Howey test to classify an asset as security, which includes “expectation of profits.”
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by whatisweb3 4y ago
USDC, DAI, EUROC. Merchants can also accept volatile base tokens like ETH and have it converted through a processor to fiat or stablecoin for income purposes. This gives the consumer the choice to pay with ETH instead of a stablecoin.
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by whatisweb3 4y ago
Why? Securities include a reasonable expectation of profit. Investors in a stablecoin expect their dollar investment to hold stable and remain unchanged.
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by whatisweb3 4y ago
I don’t see any reference to zero knowledge proof in there. Look into modern research around succinct and generalized ZK proofs. SNARKs, STARKs, PLONK, zkVMs, MPC and secure setup ceremonies. All of this is coming from blockchain and crypto
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by whatisweb3 4y ago
In the long term I hope Apple does not win. The idea that we should just submit the world’s private data to Apple for the next century is… terrible. Zero knowledge proofs are one of the more promising things starting to emerge from crypto a
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by whatisweb3 4y ago
This only regulates on and off ramps to CEX. Other situations like trying to force a decentralized stablecoin to block accounts or add regulation to an ownerless DEX protocol are harder to regulate. Privacy features like TornadoCash and Azt
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by whatisweb3 4y ago
A centralized exchange is not a blockchain. Depositing dollars into Coinbase is similar to depositing dollars into PayPal. The company can and should be regulated as a legal entity in order to protect user's funds and minimize fraud. R
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by whatisweb3 4y ago
They are similar in that they both deal with "assets" that are volatile and not equal to real dollars. It is easier for authorities to control and regulate the stock market than it is a decentralized global ledger. But overall the
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by whatisweb3 4y ago
Ethereum, like USD but unlike Bitcoin, does not have a fixed supply cap. The protocol 'prints' new currency every minute. The EIP 1559 document even made this point clear: Ethereum no longer has a strictly deflationary or inflatio
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by whatisweb3 4y ago
"Pay $1 to a single private company" is not the same as "pay $1 toward every circulating token in the network." If you consider this a tax, it is a tax distributed to all current and future holders of the currency, inclu
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by whatisweb3 4y ago
Poor technical and legal frameworks for digital payment processors is how we have gotten to this point. Strict AML, KYC, copyright protection, and anti-adult requirements forces payment processors to err on the side of caution and deploy ma
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by whatisweb3 4y ago
Lol this comment reveals a lot of ignorance. My last transaction fee on Eth was in the range of $1, most of that value is burned and not sent to a miner, and anyone who wants to participate in protocol rewards can do so through delegation.
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by whatisweb3 4y ago
Imagining either crypto to crypto, or a permissioned rollup handling crypto to fiat that lets the sequencer block a users address for KYC purposes, but user can still trustlessly withdraw funds to mainnet.
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by whatisweb3 4y ago
That’s my point. A system where your funds are locked unless your complaint goes viral is a terrible system.
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by whatisweb3 4y ago
Hopefully making enough noise on HN and social media will help your case move quickly. That appears to be the only way to get a response these days. Maybe one day non-custodial and permissionless payment rails will prevent this situation, f
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by whatisweb3 4y ago
True, even though a current "light client" can run on Raspberry Pi, really there should be even lighter clients for validating on-chain state. See [1] which is an area of development. [1] https://nimbus.team/docs&#
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by whatisweb3 4y ago
Application-level protocols should not be attempting to secure their own consensus mechanisms - it ties the security of the application to the base token. If you are seeking decentralized naming and certificate authorities you can look at E
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by whatisweb3 4y ago
The irony is that Minecraft and its players have no problem with virtual tokens known as Minecoins that are used to buy game assets and mods. Instead of allowing this sort of pattern to be decentralized and permissionless, they are forcing
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by whatisweb3 4y ago
Not entirely surprising. Minecraft gets to maintain full control and custody, including extracting rent from any marketplace and assets selling on its platform, and at the same time look like the hero to the game community that so fervently
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by whatisweb3 4y ago
IPFS is basically similar to BitTorrent, it does not solve the problem of "who will host this data" that PirateBay and similar sites struggle with. > There's no reason a blockchain stands a better chance of surviving 100 y
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by whatisweb3 4y ago
There should not be a stigma on the desire to use crypto mixers to preserve anonymity. Saying it is only used for crime is like saying end-to-end encrypted chat apps are only used for crime.
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by whatisweb3 4y ago
ETH or USDC are as much “assets” as stocks, gold, bonds, property, domain names. Humans and social consensus made all of this up.
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by whatisweb3 4y ago
Crypto is doing layoffs? It is a decentralized network; nobody is being “laid off” of Bitcoin or Ethereum. The value fluctuates but this is where users would typically send USDC or DAI which is pegged to the dollar. My crypto transfers also
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by whatisweb3 4y ago
Yes, once you have 23 words, there is a finite set of possible words that can be used as the 24th to make checksum valid, and you could pick one at random. But as I understand the private key can be any number, so you do not need to even us
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by whatisweb3 4y ago
All currency is worth nothing until it is worth something, and even that will change over human history. Crypto is as artificially scarce as any currency, except the scarcity is baked into clear rules in the protocol that cannot be arbitrar
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by whatisweb3 4y ago
Some people want USDC, some people want non fungible assets, some people want ETH, some people want an ERC20 that backs an idea or organization. DeFi let’s these users manage these assets without placing them in the hands of a single actor.
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by whatisweb3 4y ago
I am not sure any of this is accurate since you can directly on-ramp to L2s and also purchase L1 and L2 assets off-chain. An L2 like zk-rollup - assuming the protocol is implemented correctly - has same security guarantees as Ethereum since
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by whatisweb3 4y ago
Old and clunky. Try setting up a multisig on the weekend with a few friends around the world, who all use different banks. It usually involves a lot of time, paperwork, lock-in to a single bank, monthly fees, sharing private data, and stric

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