Ask HN: What is your opinion on DAI a stable cryptocurrency built on Ethereum? • Hacker News Board

Re: Ask HN: What is your opinion on DAI a stable cryptocurrency built on Ethereum?

#11

Post by lucozade » Mon, Nov 26, 2018, 4:21 PM UTC

babaeth wrote: post #7

dangerface wrote: post #6

I dunno about DAI but in my experience the processing fees for crypto currency are usually alot more than credit cards.

This seems to be the equivalent of saying "I don't want to use the internet because it's too slow" in 2001. There are numerous organizations working on ways to reduce crypto processing fees, one of the most advanced in certainly Plasma: https://plasma.io/

Not sure that's a reasonable analogy. The Internet in 2001 let you do things that you would like to do but couldn't, easily, before. It was a bit crap at them but it was delivering value incrementally.

Bitcoin did that initially, to some extent, by being the currency of a part of the underworld.

Unfortunately, what then happened was that crypto was massively oversold. It would be great for distributed currency. Not really. As a store of value. Too volatile. As a payment processor. Too expensive.

Now, we're getting the next stage which is that it'll be fine when we add this special sauce. And maybe it will be, I hope so. But TBH, I'd say that the onus is on having at least one system come close to meeting at least one of the sales pitches. Even if it's a bit crap.

Re: Ask HN: What is your opinion on DAI a stable cryptocurrency built on Ethereum?

#12

Post by richardknop » Tue, Nov 27, 2018, 3:52 AM UTC

babaeth wrote: post #10

richardknop wrote: post #9

Earlier quoted context omitted.

1. What are the costs of your solution? Who's running the nodes, how much does it cost? Gas? Give me some numbers please. 2. Scaling. Current state - it doesn't scale. My own opinion is it will never scale, centralised systems will always be much more performant. 3. Not really. The only difference is Bitcoin is very volatile and most people are expecting it will rise in value so they are not spending, you are right.…

So it seems that our main disagreement is about the cost of the implementation of such system. While I agree that the current state of Blockchain and Ethereum doesn't allow this I also believe that a part of the scaling issue will soon be solve with Plasma, you can learn more about it here ( https://plasma.io/plasma.pdf ). In this case the transaction fees and processing time are drastically reduced and Plasma could…

In theory what you are describing sounds appealing. One more issue I thought about is in a case this system ever became a thing, Visa/Mastercard could just lower their fees. Pretty sure they are still profitable even with much lower fees so there's a chance they could still outperform this plasma system since their centralised system will be more efficient and will allow them to have even lower fees. It would be good to have a competition to force Visa/MC to lower their fees though. And other payment processors. They are getting away with insane profits right now.

Also I don't think it's possible to rollout a system like this in China due to the government there. They would not allow a a system they don't control to be used. So it would have to be in some relatively free country where you would have to implement this.

Re: Ask HN: What is your opinion on DAI a stable cryptocurrency built on Ethereum?

#13

Post by RobLach » Tue, Nov 27, 2018, 7:41 PM UTC

babaeth wrote: post #4

richardknop wrote: post #3

How do you save the 2-3% processing fee? People will continue using their Visa / Mastercard credit cards so you'd have to persuade for profit businesses that do processing currently to use DAI and lose their income from fees. Not going to happen. You'd need to offer alternative payment method and somehow persuade people to switch.

They can accept both forms of payment. They can simply add DAI as a form of payment accepted by their shop.

What’s the set of people who would pay with DAI but don’t have or are too unwilling to pay with a credit/debit card?