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Ethereum Has Issues

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Re: Ethereum Has Issues

#271

Post by 3np »

throwaway82652 wrote: post #215
pcthrowaway wrote: post #200

Earlier quoted context omitted.

The "little guy" is always at a disadvantage in capitalism (or small business, or mom & pop shop) I suspect there's a disconnect between people talking about democratization of access, and people pointing out crypto doesn't actually make things fair. Crypto doesn't make things fair for the little guy. It does add additional transparency to financial markets though, as well as things like open, verifiable, non-custodi…

>It does add additional transparency to financial markets though No, not really. This comment is more crypto myth-building. There's nothing technical about blockchains that adds transparency. Any company that wants to publish all its financial statements publicly can technically already do so and could always do so. They don't for many reasons, the most important ones being that customers overwhelmingly want financia…

> There's nothing technical about blockchains that adds transparency

False. On a public chain like Ethereum, every single historical operation and its outcome events and state can be traced and verified. If the source code is published, the running bytecode can be verified to match the source code.

> smart contracts are [...] not "non-custodial" because they require middlemen to run the blockchain

Also false - miners/validators have no opportunity to seize or freeze assets

> There is also nothing more open or verifiable about smart contracts compared to any other program

See above. You can verify what code was running when and with what input.

Re: Ethereum Has Issues

#272

Post by akyu »

px43 wrote: post #70

Ha, Flash Boys 2.0 was from 2019. This blog post is literally "I read a thing from three years ago and have lost faith in something that I never believed in in the first place". As someone who knows and has worked with all the people involved with the write-ups referenced in this blog post, I can pretty confidently say that the author is way way behind here. There have been some insane advancements in recent years th…

A unsolved problem from three years ago is still an unsolved problem. And you don't actually rebuke any of his claims, you just give a poor summary of MEV.

Re: Ethereum Has Issues

#273

Post by ryan_lane »

michaelsbradley wrote: post #219
dmitriid wrote: post #192

Earlier quoted context omitted.

> Is Ethereum PoS yet? Simple Yes or No. It seems you've given a long answer which can be simplified to "No"

Along with pointers to current and historical information as to why arriving at PoS has been such a long and interesting road to hoe, while also being an open/source process involving teams and individuals all over the world.

So, the answer is still a no?

Re: Ethereum Has Issues

#274

Post by RustyConsul »

iboisvert wrote: post #182
RustyConsul wrote: post #131

Earlier quoted context omitted.

Credit is loaning you money and providing an interest rate. Usually something insane like 15%. DeFi is unlocking the value of an asset, making it liquid and allowing me to participate in other investment opportunities without an APR. One example is on Kaurura. I have KSM, Stake that KSM for a 19% APR Rate. Throw that LKSM into a vault and mint AUSD as long as i have 160% collatoral ratio. I can then use that aUSD i p…

> It's a new era of finance I have no experience with crypto, but this I don't understand. > DeFi is unlocking the value of an asset, making it liquid... Like a mortgage or a bond issuance (bonds are secured against assets of the corporation)? > Credit is loaning you money and providing an interest rate. Usually something insane like 15%. Average rate for a 30-year fixed mortgage in the US is about 4%[1]. Average Aaa…

The KSM is staked to ensure concencus of the network. proof of stake is like proof of work, but instead you are betting that this node is behaving and the node themselves are running cryptographic hash schemes like bitcoin. So like bitcoin, you are paid for validating the concensus of the network so you are paid that APR. Taken another step further, if you create a smart contract and lock the KSM in it, and that smartcontract stakes the coin for you, it can mint LKSM that proves your ownership in the pool. Slowly but surely the price of LKSM and KSM will diverge in LKSM's favor since the KSM in the smart contract is generating returns for being staked. So you can always redeem it with a slowly appreciating exchange rate. So all that to have a liquid form of staked KSM. You can now use the LKSM to mint AUSD and you can trust you can pay that back because you have colateral lockeed in a vault. Now when i participate n pools, I earn fees for providing liquidity of two assets. Now when people are trading, they can dip into the pool, swap their assets and no one has to be on the 'Other-side' of the trade. They get minimal slippage, and i get paid a trade fee that's much lower than what you can get in traditional finance (Usually fractions of a penny).

>how is this any different, for example, from a company issuing bonds at 4% coupon rate and using the proceeds to fund operations when the company's profit margin is, say, 50%?

It's nothing like that. Because A.) It's not getting people to loan me money. Company issuing bonds at 4% has to pay that 4% to get access to their assets because it's 'Risky'. In the blockchain there is no risk because they have constant oracle access to the price of the underlying asset so i can do it for free, with no counter party. Simple a piece of code collectively floating on thousands of nodes running around the world.

Re: Ethereum Has Issues

#275

Post by ryan_lane »

pshc wrote: post #124
recursive wrote: post #99

Earlier quoted context omitted.

I understand the arguments about how cryptocurrencies use too much electricity, but I understand none of what you've just said.

I can try to contextualize this... at least explain my understanding of the history. Bitcoin grows popular and its proof of work burns increasing amounts of electricity. Ethereum devs do not want to see Eth go the same way, and prioritize Proof of Stake, which will not require any more waste. The devs sketch out new roadmaps, do research, and make slow but steady progress; software always takes longer than you think.…

It's the Eth people who constantly say it's 6 months away. Bitcoin people say that PoW is necessary for security and that PoS in Eth will be less secure, and also concentrates wealth and gains on that wealth into the hands of a small group.

Re: Ethereum Has Issues

#276

Post by Ruphin »

Lazare wrote: post #259
Ruphin wrote: post #197

Earlier quoted context omitted.

A number years ago I was unemployed for an extended period of time while working on open source projects, and I ran out of money, so I took out a loan to cover my expenses. I lived off this money for several months until I found a suitable job, and after some time I repaid this loan. This type of personal credit financing would cost a fortune in regular finance (try going to a bank and taking out a loan because you'r…

That makes no sense. > try going to a bank and taking out a loan because you're broke and unemployed), but because I had digital assets to pawn "Broke" means you have no assets, thus you have nothing to pawn, therefore the loan would be unsecured. You COULD NOT have obtained such a loan via defi, and while you could have obtained one in the traditional finance system (which is strictly an advantage over defi...), it…

Obviously I was not "broke" in the sense that I had no possessions of any value. With that definition nobody is ever broke unless they are naked with nothing left to sell other than their labor.

I had plenty of things of value, like a trading card collection, a personal computer, a phone. But no bank would ever accept any of these things as a collateral for a loan.

I could have sold things I owned, but I didn't want to lose any of the things I had collected over the years. Having access to digital things of value made it possible to take out a loan without having to sell anything.

You say crypto added higher costs and worse UI, but do you have any evidence for this? I was able to get a few months income on my bank account in less than an hour of work, at a rate that is more favorable than any mortgage rate currently offered by banks (with mortgage rates almost at an all-time low).

Digital value does not have to be limited to bank accounts, just like physical value does not have to be limited to cash. If I have other physical things of value (like collectible trading cards) I can trade these with other people directly or use them as collateral for cash loans with any third party. Why are digital things of value limited to bank accounts? If other digital things of value exist, and we have standardised interfaces for digital valuables, that enables incredible amounts of flexibility in financial transactions, such as using things I have as collateral for loans, without requirements for appraisal, risk assessment, fraud protections, etc.

If I had traditional financial assets I could have used those and use the traditional financial system to get credit, but I didn't have any of those. I had other things of value, and because they are digital, with standard interfaces, I was able to get credit, which I otherwise wouldn't be able to get.

I'm only offering some kind of anecdotal evidence here that some people do in fact get some utility from these things. To me personally, it was very convenient to have this option at the time. If I get into a similar situation in the future, I would use it again.

Re: Ethereum Has Issues

#277

Post by undersuit »

latchkey wrote: post #79
undersuit wrote: post #53

Earlier quoted context omitted.

I don't think Ethereum will ever switch. The miners control the chain now, POS will disrupt that. The miners can't make an orderly exit of resources or to a new coin so they will persist on the dominant PoW-Eth while PoS-Eth loses all chain resources.

> The miners control the chain now "difficulty bomb"

> The miners control the chain now

Who wants to vote in a little less difficulty so we can continue mining?

Re: Ethereum Has Issues

#278

Post by otterley »

yucky wrote: post #255
otterley wrote: post #150

Earlier quoted context omitted.

That is incorrect. You'll find the relevant regulations here: https://www.epa.gov/biosolids/biosolids-laws-and-regulations

Your link does not support your claim. Crops are watered with non-potable water and it's not regulated. Any farmer can water their crops and sell them on the side of the road without any interference from the EPA.

The claim I’m making isn’t that you can’t use non-potable water. It’s that the water quality is regulated (see https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFR...) and you can’t fertilize crops with raw human sewage (https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFR...), both of which are true (with certain exceptions).

I find it is useful to try to disprove your own beliefs before confidently claiming something to be true. The resources are out there and not terribly difficult to locate if you put a modicum of effort into it.

Re: Ethereum Has Issues

#279

Post by eldenwrong »

jqpabc123 wrote: post #214
eldenwrong wrote: post #207

Earlier quoted context omitted.

Trustworthy vendors rely on their reputation. They usually value it a lot. So what if they do? They have to start again from 0 (usually).Its also very easy to avoid them...

Scammers only care about ripping you off. And the darknet is the ideal environment for them.

How come darknet markets work extremely well then?

Some people value steady profits much more than a one time scam.

Re: Ethereum Has Issues

#280

Post by koolba »

Ruphin wrote: post #276
Lazare wrote: post #259

Earlier quoted context omitted.

That makes no sense. > try going to a bank and taking out a loan because you're broke and unemployed), but because I had digital assets to pawn "Broke" means you have no assets, thus you have nothing to pawn, therefore the loan would be unsecured. You COULD NOT have obtained such a loan via defi, and while you could have obtained one in the traditional finance system (which is strictly an advantage over defi...), it…

Obviously I was not "broke" in the sense that I had no possessions of any value. With that definition nobody is ever broke unless they are naked with nothing left to sell other than their labor. I had plenty of things of value, like a trading card collection, a personal computer, a phone. But no bank would ever accept any of these things as a collateral for a loan. I could have sold things I owned, but I didn't want…

What’s was the rate and collateral ratio?
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