The problem I have with blockchain enthusiasts, after talking with them about their philosophy, is that they seem to consider trust a bug, and believe that ideal world is achievable with straitjackets of technical solutions that eliminate trust. Trust is a feature, not a bug. If trust is violated by rogue agents, it is because they exist[0], not because trust itself is a folly. However, blockchain-adjacent initiative…
Every few months, my credit card blocks one of my purchases because its statistical algorithm decides it looks sketchy and wants me to respond to a verification email. How is this any more trusting? Both systems recognize the existence of fraudulent actors, and handle the problem in different ways. Blockchains use cryptographically-signed transactions, so merchants get no information they can use against you. Credit…
They are doing it for good reasons, presence of malicious agents (money launderers, etc.) exploiting trust requires it. (In fact, I’d argue banks are getting away with not doing it enough with very moneyed customers.)
Blockchain does not eliminate this need in current age—either equivalent institutions would have to be reproduced all anew, or we need to end the motivations that make people want to exploit financial system in the first place.
And if we do address the latter (the only sustainable solution in the long run), then what is the benefit of blockchain and all? Isn’t it just pure overhead then?