On 18/7/19 10:13 pm, Kim Holburn wrote:
> On the other hand there is no real argument here as to why
cryptocurrency is not a useful means of exchange, a currency. Except
possibly the scalability argument.
The article I sent was about noncurrency applications of blockchain.
So I extracted some of Steve's and my own comments on that topic.
Blockchain involves a data model with particular characteristics. A few
instances of real-world data share those characteristics. (The primary
example I use is old-system land title). Blockchain may have benefits
in such circumstances. Otherwise, its benefits are limited and its
disbenefits and energy and other costs are high.
Cryptocurrency is a very particular application. Skilful design has
enabled it to function pretty effectively, but the energy costs are
frightening, and a bunch of vulnerabilities have to be managed.
Meaningful comments about cryptocurrency need far deeper study than I've
ever put in, so I've made few and fairly superficial comments about it.
Steve's written more about it though, much of it accessible in his blog:
http://lockstep.com.au/blog/blockchain.html
_____________
On 18/7/19 10:13 pm, Kim Holburn wrote:
On 2019/Jul/18, at 1:31 pm, Roger Clarke <roger.cla...@xamax.com.au> wrote:
[In May 2016, Steve Wilson wrote:
http://lockstep.com.au/blog/2016/05/03/something-about-blockchain.html
<http://lockstep.com.au/blog/2016/05/03/something-about-blockchain.html>
The blockchain only does one thing (and it doesn’t even do that very well). It
provides a way to verify the order in which entries are made to a ledger,
without any centralized authority
...
From a design perspective, the most troubling aspect of most non-payments
proposals for the blockchain is the failure to explain why it’s better than a
regular database. Blockchain does offer enormous redundancy and tamper
resistance, thanks to a copy of the ledger staying up-to-date on thousands of
computers all around the world, but why is that so much better than a digitally
signed database with a good backup?
...
The truth is that when we fold real world management, permissions, authorities
and trust, back on top of the blockchain, we undo the decentralization at the
heart of the design.
These are well put. All those commercial and government projects seem
ridiculous. And the idea of investing in cryptocurrency seems as ridiculous as
investing in currency. Currency doesn't do anything by itself.
On the other hand there is no real argument here as to why cryptocurrency is
not a useful means of exchange, a currency. Except possibly the scalability
argument.
--
Roger Clarke mailto:roger.cla...@xamax.com.au
T: +61 2 6288 6916 http://www.xamax.com.au http://www.rogerclarke.com
Xamax Consultancy Pty Ltd 78 Sidaway St, Chapman ACT 2611 AUSTRALIA
Visiting Professor in the Faculty of Law University of N.S.W.
Visiting Professor in Computer Science Australian National University
_______________________________________________
Link mailing list
Link@mailman.anu.edu.au
http://mailman.anu.edu.au/mailman/listinfo/link
