Some hubris in this post. Claims ASIC resistant PoW is "Solved as far as we can", with Ethash being the near end-all of hashing. Random-X is a significant step towards ASIC resistance, requiring near general purpose computation to perform efficiently (i.e. if you can build a better CPU than Intel/AMD/ARM, you've already won). https://github.com/tevador/RandomX/blob/master/doc/design.md (Random-X requires code JITting…
Hard Problems in Cryptocurrency: Five Years Later
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Re: Hard Problems in Cryptocurrency: Five Years Later
#72Funny. Article discussing hard problems of crypto and ignoring the elephants in the room. There is still no actual and relevant use case for crypto outside illegal transactions and gambli^H^H^H^H^Hinvestment purposes. The second elephant is that it brings monetary policy back to medieval times. Third is that in practice the whole concept of credit and ots role in money creation is ignored.
What's actually funny is how people still believe that no use cases exist. Here are just some examples: * Uncensorable donations * No way for a third party to freeze your payments (internet is full of horror stories of PayPal) * Not all businesses can accept digital payments (marijuana stores or porn have trouble) * Credit cards and payment processors take a 2-4% cut, of all transactions. * You can use cryptocurrenci…
I also want to point out that the use-case of "get your money out of the country" is not exactly perfect for Bitcoin because of how volatile it is (imagine if someone had to get their money out during December 2017).
Re: Hard Problems in Cryptocurrency: Five Years Later
#73Re: Hard Problems in Cryptocurrency: Five Years Later
#74Earlier quoted context omitted.
What's actually funny is how people still believe that no use cases exist. Here are just some examples: * Uncensorable donations * No way for a third party to freeze your payments (internet is full of horror stories of PayPal) * Not all businesses can accept digital payments (marijuana stores or porn have trouble) * Credit cards and payment processors take a 2-4% cut, of all transactions. * You can use cryptocurrenci…
Excluding the transaction fees problem you mentioned (which cryptocurrencies also have -- while it might not be 4% it's definitely not 0%), all of the uses you listed are really just one use-case -- uncensorable transactions. Don't get me wrong, that's a very good feature of cryptocurrencies (assuming that you have the ability to transform crypto back to real money on the other end), but you should be aware that your…
I'd say anonymous payments is a little different from being uncensorable though. You'll stay anonymous even after the payment has gone through.
As for transaction fees, if we exclude Bitcoin which has really high fees, cryptocurrency fees are very small and almost negligible.[0]
Getting money out of the country is always relative. Even with Bitcoin's volatility it's much preferred to losing all your money. Either you cannot bring it with you through the border, or Venezuela's hyperinflation will eat it up in a flash.
Re: Hard Problems in Cryptocurrency: Five Years Later
#75I literally spent the past week reading a couple dozen papers on cryptocurrency attacks, in service of a term paper which should hopefully turn into a master's thesis (and possibly more during my PhD campaign). I'm pretty damn pessimistic as a result. Smart contracts basically throw all of your consensus guarantees out the window because they can cause arbitrary exchanges of value in the application layer, which can…
Plus there's the problem that smart contracts cannot be easily modified if they are found to be buggy and that one can always reverse engineer them, because they're distributed to everyone. These two together have already caused lots of damage https://hackernoon.com/yes-this-kid-really-just-deleted-150-... and they make most real-world uses impossible. It is pretty much impossible to sell anything digital with smart…
One example is MakerDAO which has around $300 million in value locked, and has been running without incident for a while now.
Re: Hard Problems in Cryptocurrency: Five Years Later
#76It's such a shame that useful proof-of-work is so impractical. The amount of cycles spent mining for the sake of mining is pretty depressing.
Besides proof-of-stake, there's also a coin that tries (tried?) a proof-of-work with greater public utility: Primecoin [1]. It creates Cunningham chains of prime numbers [2]. [1] https://en.wikipedia.org/wiki/Primecoin [2] https://en.wikipedia.org/wiki/Cunningham_chain
Re: Hard Problems in Cryptocurrency: Five Years Later
#77Re: Hard Problems in Cryptocurrency: Five Years Later
#78Earlier quoted context omitted.
Explain the mechanism by which people who invest can exercise their rights as stakeholders, receive dividends etc? Who's to enforce they actually own anything? What's stopping this project from taking all the money and producing nothing (which is exactly what happened with pretty much every ICO out there)?
What’s stopping a YC startup from going bankrupt after having disclosed tons of risks in a PPM? At least here we know exactly how much was invested. Why does everything have to be about voting and receiving dividends? Amazon’s shareholders don’t do either one but value the shares greatly. And dividends can be programmed into the smart contracts too. Want them in DAI, USDT, ETH? You can! One way would be for the compa…
And for minority of projects where indeed they're expected to be paid using their own token, how do I know the company owners don't run away with all the money they raised? Because this is exactly what happened with 99.99% of ICOs created on Ethereum. Now, of course scams happen in the traditional financial system too, but not to the same extent, because there's an enforcement mechanism in place. So, following your example, what stops a YC company from declaring bankruptcy and spending all the money on things founders want for themselves? Well, an investigation may be launched: founders are known, they can be found, prosecuted and sentenced. With tokens issued online, where you may not even have a company registered or have a company registered in some obscure jurisdiction, there is very little incentive NOT to steal the money. And, once again, that's exactly what happened during the ICO craze, which Ethereum is directly responsible for. A lot of people lost a lot of money funding scammers - and nobody blinks an eye!
I don't argue that everything has to exist within the traditional financial system. On the contrary. But in order to provide real value and allow investors to have some level of certainty that at least their money won't be outright stolen, the solution MUST include an enforcement or incentive mechanism strong enough to deter scammers.
Re: Hard Problems in Cryptocurrency: Five Years Later
#79Your site's SSL cert has just expired at November 24, 2019 at 1:00:59 AM Eastern Standard Time Safari, Chrome give errors now.
Re: Hard Problems in Cryptocurrency: Five Years Later
#80Earlier quoted context omitted.
Ethereum is a blockchain for general purpose computing. It’s not a scam, it delivered what it promised. MakerDAO, mentioned in the post, is a cool and useful project running on Ethereum. I agree with you about the core use case for Bitcoin currently being an escape from the government-forced financial system. It pierced the monopoly successfully. But the Ethereum screed is just lies at this point, Ethereum is one of…
"a blockchain for general purpose computing" is precisely the problem. Nobody wanted or needed that. Bitcoin was created as digital money. A bunch of people mistakenly thought that the best "feature" of Bitcoin was its programmability, and doubled down on that by allowing arbitrary computations in transactions, which just opened up the Pandora's Box of attack vectors. And you can't really say "Ethereum is one of the…
I'm sure everybody just wanted a faster horse, but I certainly do have some good uses for distributed computing (with a larger bandwidth than Ethereum can provide, though). And any new tech can be seen as the "Pandora's Box of attack vectors" and a fraud platform, including the internet itself.
Not every experiment is a scam.