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Stripe Launches L1 Blockchain: Tempo

tempo.xyz

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Re: Stripe Launches L1 Blockchain: Tempo

#391

Post by __MatrixMan__ »

rank0 wrote: post #288
__MatrixMan__ wrote: post #229

Earlier quoted context omitted.

> Stripe controlled blockchain could offer that a database could not. A database cannot resist tampering by somebody with admin access to the database. It may be the only thing that blockchains have going for them, but it's a big one.

Whoever controls the protocol and network nodes can indeed unilaterally alter the blockchain just like any other data structure.

Yeah sure, if there is a single such party. I haven't looked at how stripe is implementing this, but since it's a blockchain total control is an option, not a requirement.

Re: Stripe Launches L1 Blockchain: Tempo

#392

Post by hrdwdmrbl »

adxl wrote: post #375

There are four bullet points that answer the question why would you want this. The one that really stands out to me is “ 03 :: Predictable low fees Transform your cost structure with near-zero transaction fees that are highly predictable and can be paid in any stablecoin.” I question why some of large companies that are named here as partners would want this.

That’s true! That’s a big conflict of interest for a company like Shopify who makes a lot of money charging payment processing fees.

Re: Stripe Launches L1 Blockchain: Tempo

#393

Post by logicchains »

anthem2025 wrote: post #380
earnesti wrote: post #369

Earlier quoted context omitted.

Bitcoin makes a lot of sense, if you don't want central banks to print your monies and devalue it. If you don't care about that, then it doesn't make sense for you. But really, the 21M cap is about only point that matters about BTC, the other features have to be there but are secondary.

Bitcoin makes a lot of sense if you’re a libertarian weirdo who thinks fiat currency is the worst thing ever. It makes no sense in the real world.

The "real world" includes countries with double or even triple digit inflation, and if you live in such a country bitcoin absolutely makes sense.

Re: Stripe Launches L1 Blockchain: Tempo

#394

Post by __MatrixMan__ »

jamesmccann wrote: post #276
__MatrixMan__ wrote: post #229

Earlier quoted context omitted.

> Stripe controlled blockchain could offer that a database could not. A database cannot resist tampering by somebody with admin access to the database. It may be the only thing that blockchains have going for them, but it's a big one.

You can sign records in a normal database. Implement some segregation of duty and don't give your DB admins access to any signing keys.

They can still delete records, restore from backups, etc

Re: Stripe Launches L1 Blockchain: Tempo

#395

Post by anthem2025 »

alchemist1e9 wrote: post #370
threetonesun wrote: post #323

Earlier quoted context omitted.

Unless I read this wrong there were likely two "traditional" banks in this process you just described? At the very least it sounds at least twice as complicated as how I pay for groceries with no obvious benefit.

What banks are those? The debit card issuer is a non-bank issuer on the Visa payment network. LN coins are self custody origin coins. No banks I see, except the grocery store’s on the other side of me. But soon they will accept LN directly in a few years or less.

Why would they ever bother?

To serve a tiny percentage of their customer base that just ends up finding an already supported method anyway?

Where exactly is the value for them?

Re: Stripe Launches L1 Blockchain: Tempo

#396

Post by Liron »

Let me help explain whether blockchains are useful or not: They're not.

The US gov let Circle be a less-regulated bank than other banks. This is called "regulatory arbitrage". You can take advantage of it by checking the box that you have a "blockchain".

Stripe noticed "wow, things labeled blockchain are nice for some people to use" because of this dumb inconsistent banking regulation situation.

Stripe doesn't mention that the underlying tech is impotent, they just have to play along, and here we are.

Re: Stripe Launches L1 Blockchain: Tempo

#397

Post by the_gastropod »

pc wrote: post #340
jchw wrote: post #148

Earlier quoted context omitted.

A lot of us are not really deep into the finance space. Maybe there's a good reason it's left unsaid, but the question I came away with after reading that page and this comment is, why are businesses finding crypto easier/faster/better? To me, it's not 100% clear exactly who Tempo is for and not for, and why blockchain is more suitable than traditional centralized database technology here. And it sounds like this sys…

Does that imply that some day users would be able to pay using Tempo? I don't think that customers or businesses should see Tempo very much. In the success case, Tempo is a platform like SWIFT or ACH that others employ behind the scenes to orchestrate transactions. "Decentralized, internet-scale SWIFT" isn't exactly the right analogy (there are clearly lots of differences), but it's not totally wrong either. Why are…

I think "regulatory arbitrage" still fits here, though maybe not in the sense people assume. The GENIUS Act and MiCA don't eliminate arbitrage. They codify it. Stablecoins are now regulated under frameworks that look very different from those governing banks, payment networks, or money market funds. That difference is the arbitrage.

And crucially, the reason to use crypto rails here is a legal one, not a technical one. There's no throughput, cost, or reliability advantage over existing centralized systems. Quite the opposite. What crypto offers is access to a regulatory regime designed through heavy industry lobbying, one that e.g. doesn't even require full 1:1 low-risk asset backing. That would never fly in traditional finance.

None of this implies illegitimacy. Regulatory arbitrage can be perfectly legal. But it does mean the uptake isn't about technological superiority. It's about governments creating a parallel rulebook after sustained lobbying pressure. That distinction seems important to keep in mind.

Re: Stripe Launches L1 Blockchain: Tempo

#398

Post by Ekaros »

asats wrote: post #337
boringg wrote: post #333

Earlier quoted context omitted.

So then by using this product you are de facto buying short term US debt lowering the debt costs in a way? Is that what you are describing? And Stripe makes money on that short term carry.

Still doesn't answer why you would need any crypto here. Why can't the USD transferred to stripe just be a record in an SQL database saying customer X has N USD in the account, and transferring that around could be done instantly at zero cost by changing an sql row.

That sounds like banking or payment processing. Albeit with later Paypal has proven that you do not always need to return funds, but still there is regulatory history on that...

Stable coins are new enough and have not catastrophically crashed yet so there is less oversight.

Re: Stripe Launches L1 Blockchain: Tempo

#399

Post by __MatrixMan__ »

Marazan wrote: post #336
__MatrixMan__ wrote: post #229

Earlier quoted context omitted.

> Stripe controlled blockchain could offer that a database could not. A database cannot resist tampering by somebody with admin access to the database. It may be the only thing that blockchains have going for them, but it's a big one.

Which is by the DAO exploit on Ethereum was successful and not rolledback by the Ethereum Devs. Oh, wait... I've been handed a piece of paper...

The protocol allowed it, there's nothing wrong with that. It's not like a DB admin just made a change without having to worry about what the rules were.

Re: Stripe Launches L1 Blockchain: Tempo

#400

Post by CPLX »

dcposch wrote: post #186
nasmorn wrote: post #57

Earlier quoted context omitted.

Because they are legally barred to doing the same thing in USD. Which is exactly what’s going to happen to this once enough people actually use it.

Many skeptics assume that stablecoins are just about regulatory arbitrage. That's part of it, but: 1. Progress often depends on evolving obsolete regulation. Uber works much better than taxis (once upon a time, people could "call a dispatcher" an hour in advance, wait on hold, etc) and yet in the early years they had to work around taxi regs. 2. Blockchains are a fundamentally more robust way to run a ledger. If any…

> Uber works much better than taxis (once upon a time, people could "call a dispatcher" an hour in advance, wait on hold, etc)

Uber rides ARE taxis.

The innovation of Uber wasn't done by Uber it was done by everyone having a GPS enabled always connected phone and computing device in their hand at all times.

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