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Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

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161–170 of 576 posts

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#161
post #156
post #111

Earlier quoted context omitted.

Crypto is scam. Some people at Stripe are trying to capitalize on the hype. We'll see how it goes. Something can't be both a currency as well as a speculative asset. Bitcoin was conceived as a currency. It promised fast transaction, low fees and no central trust provider authority like a government or a bank. But it and countless other cryptos have morphed into something people speculate on for gains. There is still…

Assuming you have read the whole article that I have linked [0], did it say or mention anything about 'Bitcoin' being used for payments there? [0] https://stripe.com/blog/expanding-global-payouts-with-crypto

Bitcoin is flag bearer for crypto and the first one in the long line of crypto "currencies"

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#162

There is value in blockchain tech, but not necessary in crypto currencies, nfts or fully Byzantine decentralized tech. Like for example a distributed federate ledger is useful for checking/auditing/simplifying some federated tasks, like around supply-chain or to e.g. make it a bit more viable to interlink to game servers of the same game operated by different entities which have a real-mony related in-game economy (n…

> game servers of the same game operated by different entities which have a real-mony related in-game economy

Are you thinking like poker and other traditional card games of chance and skill? I would think the only way a distributed, multi-entity-operated game would work is if the game had very well-established, static rules, with little to no chance of any changes to the rules occurring.

That's one of the major problems I see with NFTs for game assets. Games are ever evolving systems as issues of balance need to be tested and worked out. The higher the stakes (i.e. me competitive, more it involves real money), the more necessary it becomes that the games rules not be unfairly exploitable. A game like poker has the benefit of have ~150 - 200 years of play testing applied to it.

Also, nobody owns the game of poker. There are no licensing agreements to negotiate, no standards bodies purchase specifications from, no gate keeper. Anyone can make their own poker implementation and nobody can say a thing about it.

That is, except your local government. In the US, poker is treated differently than other gambling games, as it's considered a game of skill versus chance. But it's still regulated, just not as regulated as games of chance. So while the whole, global, CryptoPokerStars or whatever network couldn't be shut down, individual entities need to operate somewhere, and users need this entities to operate in jurisdictions they can trust to regulate the entities and make sure they aren't building in back doors and cheats like pocket card x-ray vision for company employees.

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#164
post #43

Blockchain has no use other than to store tokens for speculative gambling. Take a look at this presentation - https://bit.ly/3OB5G18 Proof-of-work - the USP of blockchain makes it slow and expensive and planet destroying at scale. But it's not a bug, it's a feature. You take it out and the blockchain is neither public not permission-less. A private, trusted, permissioned blockchain is pointless. The whole blockchain,…

Where did you get the notion that the energy usage is planet destroying? Current Bitcoin usage is literally a rounding error of global energy usage (0.1%) and if wildly successful would still be https://www.lynalden.com/bitcoin-energy/

Please. This one is not even up for debate. Crypto mining is a waste of electricity.

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#165
post #152
post #137

> there is nothing here more than you can get with traditional database technology? Here are some questions that you can test your hypothesis with: * Can you get distributed and trust-less settlement mechanisms with a centralized database? * Can you seamlessly send value across jurisdictions and closed borders without meddlers and middlemen with traditional database technology (regulation resistance and unconfiscatab…

>seamlessly send value across jurisdictions I have money. How can I get some crypto? From a middleman. Need to pay fees. Then I send it to someone. Transaction fees. The receiver wants to buy groceries or pay kid's school fees, so they need to convert the crypto to money. Again fees. So lots of middlemen and fees are involved. And most of the time, One would need to provide full KYC and need to have a bank account to…

Credit cards cost 3% + $.25 per transation (doing this from memory, but I think i'm in the ballpark here). USDC to USD costs .20% + $.50 (and that's per payout, you could aggregate transactions to pay only one fee). If you use a modern chain to do the transactions, the fees are getting increasingly more trivial (like a few cents regardless of size). As scaling solutions come online, they should be even cheaper. Avalanche is the best chain i've used if you want to understand what I consider modern. Solona and NEAR are interesting too, but I haven't used it.

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#166

Earlier quoted context omitted.

* Centralised database is eventually going to be hacked. * Decentralised blockchain can't be hacked because it's well designed and tested. Problem is neither of these statements are always true.

Yet if they are true often enough, then the use case makes sense. Also don't forget insider problems. Every major financial institution has massive insider threat problemss.

I work at a major financial institution and there is no insider threat problem.

There are systems in place built over decades and regulated by the government that audit and monitor the behaviour of all employees. In particular those who have a higher ability to conduct fraudulent activities.

If you really want to see an insider threat issue you should look at the pump/dump schemes in the NFT world. That sort of immorality (and hopefully soon to be illegality) is truly shocking.

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#167
post #138

It's 100% deregulated finance and even if regulators want to regulate it, they basically can't because unlike regulators, crypto is global. All the activities that regulators are designed to prevent are very successful in the crypto world. I don't think crypto will fail or go bust; but I do think retail investors are completely abandoned by regulators who have a democratic mandate to protect them. I suppose they don'…

They can regulate where it counts: in the pockets of constituents. The US regulators don't care if UAE companies are running pump-and-dump schemes on Cameroonian citizens (or whatever other random countries you'd like to insert) as long as they keep US companies and US citizens out of it. So crypto being ungovernable doesn't matter. The people who use crypto are governable.

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#168
post #144

Earlier quoted context omitted.

I get the value of having a chain of "blocks" of data, but that could also describe git. I don't see the added value of proof of work or proof of stake here. Why isn't putting that data (or a hash of it) in a publicly available git repository just as good? You can even publish the newest branch hash in the newspaper everyday if you want.

Oh in this instance it's not about having a public record. It's about every transaction having a hash of the previous. Then it gets hard to forge old data without altering all records after the forgery. It's still possible but takes more work and can make the tampering easier to discover. And for data loggers not connected to the internet this helps. It would be just as good to put it in a central repo if there was a…

> It's about every transaction having a hash of the previous.

We understand that... GP even said:

>> I get the value of having a chain of "blocks" of data

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#169
post #51

Blockchain reminds me a lot of peer to peer e.g. Bitorrent. At the time people thought it was also going to change the world and usher in a new era of decentralisation.

Maybe in terms of concept, but in terms of real life cases and adaptability Bitorrent was arguably and still is a very successful technology that many people have engaged with.

There are many great uses of the technology e.g. asset distribution.

But in its hey day it was going to change everything like Web3 claims it will do.

Re: Ask HN: Am I going insane or is there genuinely no value in blockchain tech?

#170
post #75

You're missing the fact that it enabled purely online/digital money people will actually use. You could build an online currency with a database much more easily than blockchain but people won't use it because it relies on a central authority to maintain the database and not enough people will trust that central authority not to misuse their power. It was tried a bunch of times in the past and never worked. Fundament…

People were using money online just fine well before Bitcoin, and even today, actually using BTC for non-investment purposes is a tiny minority. What exactly makes a dollar or euro less "online/digital" than a bitcoin?

Fiat aren't less "online/digital" than crypto, they're less "cash" than crypto in the sense that no third party can prevent you from receiving or sending it.

If you use something like Monero it's also much less traceable than digital fiat.

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