Earlier quoted context omitted.
Ethereum is planning a switch away from proof of work.
Who, exactly, gets to decide that?
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Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
111–120 of 177 posts
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#112Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#113Earlier quoted context omitted.
Those companies are using Ethereum without PoW in their private networks. They plug in a different consensus model.
I don't understand what you mean by this. To my understanding, the companies' transactions/data are either on the Ethereum blockchain or not. Do you mean that they are using some other type of distributed ledger algorithm unconnected to Ethereum?
By joining the EEA you are not committing to use the public Ethereum blockchain.
In most cases, I think companies are likely to use the Ethereum codebase and run their own private chain using their own servers.
That mostly defeats the purpose of a blockchain, but it arguably still provides more security than using a single, centralized database somewhere.
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#114Earlier quoted context omitted.
Those companies are using Ethereum without PoW in their private networks. They plug in a different consensus model.
Are they? I know it's possible but I can't think of a single use where traditional software and/or contracts are more convenient. What does Ethereum with no PoW bring to the table?
The only thing I can think of is that the data you store is still distributed across multiple servers and can’t be removed or tampered with easily.
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#115Earlier quoted context omitted.
mastercard deals in credit? banks deals in credit, mastercard is a payment network.
This is true. But mastercard facilitates the liquidation of this credit via their payment systems, which people will continue to use. Initially people will likely use ether as a store of value/hedge against the traditional economy. Also dapp fuel, as we all hope. Furthermore, take a look at coinbase as an example of a company profiting heavily on this new payment system. Mastercard has an opportunity to capture some…
Coinbase makes a percentage on each purchase/sale of a cryptocurrency, much like how a bank makes money when we buy forex. As far as I know, they don't take a fee for transfers of cryptocurrencies, which is more along the lines of what Mastercard does.
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#116Earlier quoted context omitted.
Enterprise Ethereum has almost nothing to do with Ethereum the public blockchain, or crypto-currency. Ethereum based blockchains (that is based on Ethereum the software, not the canonical global instance of that software) provide an ability to create an auditable log of events. Those events might be "who accessed my credit card account and when" or "who requested access to my health records and when". These chains ca…
> Ethereum based blockchains provide an ability to create an auditable log of events If all they want is a log of events, why not use a tried and true database whose performance is more well understood? MySQL, Cassandra, whatever. You can add the ability to audit the tables by signing data updates with public key crypto.
Federated blockchains allow multiple parties in an industry (for example) to maintain a shared trusted database, with no single owner, or single point of failure. (Also, changing immutable data or posting fraudulent transactions requires collusion between multiple parties.)
This is why many large industries like healthcare and finance are actively exploring this space.
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#117Earlier quoted context omitted.
> Ethereum based blockchains provide an ability to create an auditable log of events If all they want is a log of events, why not use a tried and true database whose performance is more well understood? MySQL, Cassandra, whatever. You can add the ability to audit the tables by signing data updates with public key crypto.
By using a blockchain, you enable auditing organizations to participate in the authentication process. For instance, I might publish a private message to the blockchain that is an authentication request to resource X. A smart contract would then act on that authentication request, and publish either an ACCEPT or REJECT message. By bringing auditing organizations into the blockchain, every authentication attempt is se…
Interesting. Seems like potentially cool ideas in government and politics for transparency.
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#118Earlier quoted context omitted.
> Ethereum based blockchains provide an ability to create an auditable log of events If all they want is a log of events, why not use a tried and true database whose performance is more well understood? MySQL, Cassandra, whatever. You can add the ability to audit the tables by signing data updates with public key crypto.
By using a blockchain, you enable auditing organizations to participate in the authentication process. For instance, I might publish a private message to the blockchain that is an authentication request to resource X. A smart contract would then act on that authentication request, and publish either an ACCEPT or REJECT message. By bringing auditing organizations into the blockchain, every authentication attempt is se…
Here is your schema:
DATA | auditor_sig
------------------
Now:
a) Assume 3 components: client, server, auditorService
b) How to write to server:
1- client sends DATA to auditorService
2- auditorService signs DATA and returns S(DATA)
3- client writes (DATA, S(DATA)) to server
1- client reads (DATA, S(DATA)) from server
2- client verifies S(DATA)
3.1- valid? -> continue
3.2- invalid? -> delete DATA from server
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#119Earlier quoted context omitted.
Not the poster above, but I think the main issue is with the cost to provide proof of work in a trustless network. For example, bitcoin is already at or close to the point where the most efficient mining operations have a hard time turning profit without a major bubble drawing in outside capital. 3 years from now it may well be unsustainable.
Ethereum is planning a switch away from proof of work.
It's unclear whether or not the alternative 'proof of stake' technique will be more efficient than proof of work. It is susceptible to abuse, and is likely to require an arms race of CPU power to prevent attackers from abusing it.
Re: Master Card, Cisco, and Scotiabank Join the Enterprise Ethereum Alliance
#120Earlier quoted context omitted.
> Ethereum based blockchains provide an ability to create an auditable log of events If all they want is a log of events, why not use a tried and true database whose performance is more well understood? MySQL, Cassandra, whatever. You can add the ability to audit the tables by signing data updates with public key crypto.
Federated blockchains allow multiple parties in an industry (for example) to maintain a shared trusted database, with no single owner, or single point of failure. (Also, changing immutable data or posting fraudulent transactions requires collusion between multiple parties.) This is why many large industries like healthcare and finance are actively exploring this space.
Distributed databases can be configured to work that way as well.
Why do you need a proof-of-work blockchain? With such a small number of participants doesn't that weaken it's integrity to attacks, especially without capital incentives?