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Coinbase adds support for Litecoin

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Re: Coinbase adds support for Litecoin

#43
post #2

Would a vendor like coinbase be subject to any legal repercussions if its employees purchased litecoin before the option to purchase went live, and the price spiked?

Even if it was, I wonder how one could be caught doing that? They can buy BTC, then exchange them for LTC in a non US based exchange and do the reverse for cashing out the profits. Eventually tumble them in the process for more obfuscation.

Re: Coinbase adds support for Litecoin

#44

Earlier quoted context omitted.

I would like to hear your opinion why you think Bitcoin is more secure than Ethereum.

For example they had that bug last year where somebody was able to steal 50 million dollars equivalent ether from the network. IIRC that caused one of the hard forks and is the reason there are now both eth and etc. That was a bug in the DAO protocol. I'm not aware of any bugs in the btc protocol to allow hackers to steal money in their entire 8 years existence

It wasn't a bug with the protocol though. It was a bug with the coding of the contract.

However there has been a few forks to mitigate DDoS attacks.

Re: Coinbase adds support for Litecoin

#45
post #19
post #10

It will take significant time and effort to overtake Bitcoin's name recognition and first mover advantage. However, there's also an advantage to being a second mover that can adapt quickly to a changing environment... I doubt Bitcoin will be the supreme crypto-currency in a few years. It's just too implausible that Bitcoin is perfect enough as is, and/or the community will be able to implement any needed changes befo…

Bitcoin has by far the greatest amount of research and intellectual effort driving it, and it's far from a static protocol. It doesn't need to have gotten everything perfect, it needs to change just quickly (or slowly) enough to retain its core value proposition vs. other cryptocurrencies. Maybe it will get replaced, maybe not. But there's no question to me that Bitcoin is by far the most decentralized, most secure,…

> Bitcoin has by far the greatest amount of research and intellectual effort driving it

It's not like the research is exclusive. Note that any research done on bitcoin can also be shared and used on other projects. Litecoin for example, which is a fork of bitcoin, is now benefiting from bitcoin's R&D by using Segwit first.

Likewise, other blockchains can teach a lesson for bitcoin. For example sha256 proved not to be a good hashing algo because the reliance on ASICs, which centralizes mining. Another important area in research is the development of other greener forms of blockchain security such as Proof of Stake, which will most likely replace Proof Of Work once perfected.

In a way, when I think of bitcoin, I think of it as this whole massive umbrella project that includes all the alternative blockchain projects too, that can all share their research / experiences / ideas with each-other. This is the beauty of open source software.

Re: Coinbase adds support for Litecoin

#47

Is there a reason a lot of these cryptocurrencies have suddenly started to skyrocket all at once?

There was something like ¥30bn (£200m+) of Bitcoin traded in the past 24h, seems very very high but I guess it happened. Anyone have details?

The total 24h volume for Bitcoin is over 650 million USD: https://coinmarketcap.com

Re: Coinbase adds support for Litecoin

#48
post #18

Earlier quoted context omitted.

Agreed on bitcoin not being the perfect solution for crypto. I think Ethereum has a ton of potential in this regard. Smart contracts have many applications and provided the developer community around Ethereum continues growing, I see no reason why it won't overtake Bitcoin within the next 10 years.

All this smart contract talk makes me somewhat sceptical. There have been a lot of talk about code replacing lawyers for years now, I still see very little of that actually happening. Can you name any cool smart contract use cases?

The problem with smart contracts is that of defining trustless "oracles", or, how do you get data in and out of the network without relying on vulnerable points of centralisation. As soon as you require information about something other than the internal state of the chain, you have a problem. I believe some companies are attempting to implement solutions at the moment but I'm not familiar with the technology.

Crowd-funding is an already popular use case for blockchain contracts, as well as the creation of tradable tokens built on top of the platform. Decentralised exchanges are a nice idea but to my knowledge they are outclassed by the speed of centralised servers. Decentralised, "fair" casinos (such as Edgeless) are also possible with smart contracts but I think they won't be able to compete with traditional casinos that have an edge but offer large and enticing welcome bonuses.

For a quick overview of some of Ethereum's Dapps you can look at: http://dapps.ethercasts.com/

Re: Coinbase adds support for Litecoin

#49
post #19

Earlier quoted context omitted.

Bitcoin has by far the greatest amount of research and intellectual effort driving it, and it's far from a static protocol. It doesn't need to have gotten everything perfect, it needs to change just quickly (or slowly) enough to retain its core value proposition vs. other cryptocurrencies. Maybe it will get replaced, maybe not. But there's no question to me that Bitcoin is by far the most decentralized, most secure,…

I would like to hear your opinion why you think Bitcoin is more secure than Ethereum.

One could probably write several research papers on the topic. It would be more likely appropriate to have a discussion format, but I'll touch (not in depth) on a few of the major points:

1. Multiple popular clients implementing the same consensus algorithm. In theory, this means that bugs show up faster and you end up with something closer to the designed specification. In practice, if you ever find one tiny little difference (even a case where one has a bug and the other doesn't) you can fork the network and take advantage of the nodes that will be on the minority chain.

Eth defends this by suggesting you run multiple clients. Well, now you've doubled the resource requirements, and you force users to come up with some contingency plan in the event that the clients disagree. And if the two clients you pick are different from the two clients of much of the rest of the network, you can still fork the network.

2. Super complex contract vm. The thing so far has been a massive magnet for bugs. Bitcoin's relatively simple contact engine still has vulnerabilities being discovered in 2017 (mostly minor performance issues at this point), eth is likely to be finding bugs in their much more complicated (both theoretically and in practice) system.

3. Asic resistant PoW. No PoW is asic resistant in theory, you can always make hardware specifically specialized to your task. All it means is that eventually someone will figure out how to do it, and when they do the up-front cost may be billions of dollars - a cost that only one player will ever be able to afford, especially if they keep all their optimizations secret. Bad choice unless you think you can switch to PoS in time, but that's a bad idea for a completely separate set of reasons.

4. Centralized dev team with obvious conflicts of interest and no scruples about interfering with the networks operation to get stuff done. If a government decides to compromise when Ethereum, you could get pretty far by compromising just three people (Lubin, Wood, Buterin). Bitcoin has no such group, the devs are an amorphous blob who all suspect eachother of being CIA and would never accept a proposal merely because of the name of the submitter.

5. General support for hard forks. If you wanted to get a bad change into bitcoin, you'd mostly need to hard fork. The community actively resists hardforks. Change is very hard, but at least that means bad change is also very hard.

6. Really sketchy blockchain download. You trust a hash from a miner and then start downloading blocks after that. This means the miner can easily cheat you. Also means you can get started a lot faster, but it's a big security problem.

7. Really bad scalability. Much worse than Bitcoin's​. The EVM is very expensive, and a simple transaction is going to tax you computer a lot more than on Bitcoin. Doing 1M txns per day will probably not be possible for most nodes, and Eth is within an order of magnitude of hitting. Eth also doesn't have a flagship application yet, but all of the current ones under construction do not play nice with the scaling constraints. BTC is struggling to do payments. How will will eth cope when it's doing:

Payments

Prediction markets

Name resolution

Content attribution

And who knows what else

Scalability is a security concern, because when the shit hits the fan you are going to have a bunch of incumbents pulling every which way to make scaling work. Eth has already made massive compromises to keep up with their current load. It's going to get worse. My guess is that eth will continue to favor scaling over security, and they will end up in a 12 full nodes worldwide type of situation. That's very very very much worse than Bitcoin's situation of 12 miners.

8. In general, eth culture just doesn't consider security. They think blockchains are largely magic shields that do all the hard work for you, and despite being bitten a bunch of times already they continue prioritizing innovation. Fine, but you asked why I think bitcoin is more secure, and a culture of mistrust and slow adoption goes a long way to achieving security.

I could probably find another 10 things to talk about but I'll stop here. Ethereum has selling points over Bitcoin, but they are not security​ or decentralization by a long shot.

Re: Coinbase adds support for Litecoin

#50
post #37
post #36

Earlier quoted context omitted.

This is a bad idea. When you're buying a cryptocurrency, you're purchasing trust. Leaving your cryptocurrency with a third party undermines this. Any business idea based on people leaving cryptocurrency with a third party is doomed. Instead, why not tackle the reasons why buying those cryptocurrencies are difficult?

If you are buying to speculate perhaps your concern is not the features of the currency but rather the profit potential. You might be perfectly content trusting a third party.

This could not be further from the truth. If anybody else has the private keys to your coins, you don't own the coins. People have been burned by a countless number brokers. They will not leave their coins with a company such as this. Only the most unsophisticated investors leave their coins with brokers.

Anybody knowledgeable enough to invest in multiple cryptocurrencies is smart enough to know they need complete control over the primary keys. Otherwise, your investment could vanish at any moment.

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