121–130 of 577 posts
These incidents really illustrate the main flaw of smart contracts: a single bug in your code can lead to incredible losses. I simply don't think it's possible for human beings to write good enough software for smart contracts.
Earlier quoted context omitted.
Oil is physical; it takes up space, and needs special protections to not pollute the container it's stored in. Digital goods, meanwhile, can just be transferred permanently "into the void" (i.e. to an account without an associated key.)
This implies there isn’t any contract obligations/fine print at the point of link to real world / real identity (exchange). In a hypothetical world, if coinbase made you sign things at signup and later demanded money for the upkeep of the network caused by your own transactions, I don’t think you can say no to that easily. Compare this to an HOA demanding a $100k payment from each condo owner in the Miami condo repai…
(Compare/contrast: what if, instead of burning the deed before the collapse, you instead transferred the deed to another condo owner? Or, say, to the HOA itself? Both of those are just as simple in the crypto case as "throwing away" the token is. In the real world, transfers like that need to be witnessed under contract law. But in the crypto world, most tokens don't have sophisticated logic for recipient-agreement-gating transfers like that. You can send most kinds of tokens to people whether they want them or not.)
A point that most crypto heads miss is that the world does not run algorithmically. Legal contracts do not work like a software program and that characteristic is a feature not a bug. Not being able to reverse transactions that were part of an exploit is in infact a bug. Businesses need that tolerance for error. You need an oracle in your system. The oracle can maintain transparency of the attestations carried out if…
Much of the world literally does run algorithmically. Literally every day you trust your life, privacy and money to algorithms that make decisions without human intervention. The financial system trades trillions of dollars in automated systems that make split-second decisions in a way that precludes human supervision. Hedge funds and banks already trust algorithms that if broken could lose billions. The existence of…
Earlier quoted context omitted.
That it incentivizes human trafficking and crime is pure hyperbole. Also turns out that the barrier to entry for crypto is lower in the 3rd world than you might think: https://www.youtube.com/watch?v=jvHN0MEBoZo
I believe the synagogue shooter was paid in Bitcoin. So not pure hyperbole. Edit: might have the details confused about above point, but the general thrust of things is pretty clear. https://foreignpolicy.com/2019/03/19/neo-nazis-banked-on-bit...
These incidents really illustrate the main flaw of smart contracts: a single bug in your code can lead to incredible losses. I simply don't think it's possible for human beings to write good enough software for smart contracts.
Point is not whether my bank is malicious, but just that there's bugs everywhere and we'll have a few big "rug pulls" as this defi stuff is in prototype phase, but it will eventually grow mature. A flaw in Windows can lead to incredible losses too, but we've grown past that.
A point that most crypto heads miss is that the world does not run algorithmically. Legal contracts do not work like a software program and that characteristic is a feature not a bug. Not being able to reverse transactions that were part of an exploit is in infact a bug. Businesses need that tolerance for error. You need an oracle in your system. The oracle can maintain transparency of the attestations carried out if…
Much of the world literally does run algorithmically. Literally every day you trust your life, privacy and money to algorithms that make decisions without human intervention. The financial system trades trillions of dollars in automated systems that make split-second decisions in a way that precludes human supervision. Hedge funds and banks already trust algorithms that if broken could lose billions. The existence of…
In the exceptionally rare case that something is exploited within a cryptocurrency, there is no recourse for the victim.
There is no such thing as a stablecoin, it's a made up term to try to lend legitimacy to new crypto scams. And I say this as someone who just bought some Ethereum in the hopes of making a profit :)
If I create a USD-stablecoin with a supply of $1 backed by my $1 in US bonds, is that legit?
A point that most crypto heads miss is that the world does not run algorithmically. Legal contracts do not work like a software program and that characteristic is a feature not a bug. Not being able to reverse transactions that were part of an exploit is in infact a bug. Businesses need that tolerance for error. You need an oracle in your system. The oracle can maintain transparency of the attestations carried out if…
Much of the world literally does run algorithmically. Literally every day you trust your life, privacy and money to algorithms that make decisions without human intervention. The financial system trades trillions of dollars in automated systems that make split-second decisions in a way that precludes human supervision. Hedge funds and banks already trust algorithms that if broken could lose billions. The existence of…
I think you're missing the parent's point, which is around the world running on legal contracts.
It's that legal disputes are settled non-algorithmically. If someone harms you through fraud or other illegal action, a judge can order a transaction reversed, etc.
None of this has anything to do with algorithmic trading, or using algorithms in finance generally for efficiency.
A point that most crypto heads miss is that the world does not run algorithmically. Legal contracts do not work like a software program and that characteristic is a feature not a bug. Not being able to reverse transactions that were part of an exploit is in infact a bug. Businesses need that tolerance for error. You need an oracle in your system. The oracle can maintain transparency of the attestations carried out if…
Much of the world literally does run algorithmically. Literally every day you trust your life, privacy and money to algorithms that make decisions without human intervention. The financial system trades trillions of dollars in automated systems that make split-second decisions in a way that precludes human supervision. Hedge funds and banks already trust algorithms that if broken could lose billions. The existence of…