Here is the problem with ethereum business model. All new token created by ethereum are whitelable tokens. Each ico token brings new investors to own ethereum boosting its price. These new whitelable tokens are the. Exchanged for ethereum to provide funding. Each new project raises funds and lists it's token on an exchange. This boosts the value of the white lable token at a multiple of the amount raises in ethereum. Now companies need to spend money on there projects have to sell ethereum to fund there projects. This selling of ether raised by ico is at a multiple of the original amount raised in ether from new investors introduced to ico investing. This means mass e inflation on value will collapse as up funded projects sell their ether for operating funds. Can anyone explain how this voodoo economics can work for investors as a whole?
What Is Ethereum?
91–100 of 272 posts
Re: What Is Ethereum?
#92Earlier quoted context omitted.
> How do insurance companies deal with this problem today? The legal system. It can put people in jail for fraud if necessary. Do you really want "smart" "contracts" to have the power to put people in jail? Really?
A smart contract wouldn't put someone in jail(how often does that directly result from a contract dispute anyway?)...a lawsuit would he how someone resolves the issue if that remedy is available and necessary
Fraud is a criminal offense where you lie or deceive people about things. For example on contracts. Where you can end up in jail. Smart contracts don't fix this.
A contract dispute is where both parties are truthful, but disagree on the resolution of the contract. This is the part smart contracts fix.
And it's how insurance companies deal with these problems today.
Re: What Is Ethereum?
#93There's one point in particular that took me a while to grasp: while you can write code that runs on the Ethereum network, every single node has to process that code. So if, for example, you had a big 3d animation sequence that you wanted to have rendered, you would not just send that code off to the network to be processed. You would have to pay to have every single person on the network process that job for you, an…
How does one prove they did it "right"?
Check out https://truebit.io/
Re: What Is Ethereum?
#94There's one point in particular that took me a while to grasp: while you can write code that runs on the Ethereum network, every single node has to process that code. So if, for example, you had a big 3d animation sequence that you wanted to have rendered, you would not just send that code off to the network to be processed. You would have to pay to have every single person on the network process that job for you, an…
The difficulty is "prove you did it right". I'd guess that only works for cheap-to-verify (trapdoor"?) functions. However, Intel SGX does enable this. You would need an SGX-attested renderer, but the output would include a signature on the inputs in addition to the actual output image. You could verify this signature was made by the SGX-secured renderer code, then you'd know it executed as designed (i.e. the person d…
The moment SGX reaches 5% of the market, someone will already show how to hack it.
Re: What Is Ethereum?
#95Earlier quoted context omitted.
Unfortunately it's simply not something that can be explained easily and clearly. Imagine trying to explain the Internet to someone who has never seen a computer. This is actually a sign that something innovative is happening, because it can't be explained in terms of something that already exists.
I hear that on every topic and have never found it justified. A high level explanation can illustrate the general structure of what you're explaining and then you can paint in details as necessary. It's always possible to find an "in between". When I wrote understandingbitcoin.us, I explained it as a global ledger with mutiple versions floating around where everyone agrees to trust the version (out of the valid ones)…
This is probably the best relatively quick explanation: https://youtu.be/66SaEDzlmP4
Re: What Is Ethereum?
#96What is Ethereum _useful_ for? When would I need it? Why is AWS (et al) not sufficient?
well, not specifically ethereum but stuff like siacoin provide cheaper options than AWS and while I personally cannot attest to the performance, they seem to be interesting alternatives.[1]
In the case of siacoin, at face value it seems to be significantly cheaper than AWS or Google Cloud for providing bulk cloud storage.
[1] http://sia.tech/
Re: What Is Ethereum?
#97There's one point in particular that took me a while to grasp: while you can write code that runs on the Ethereum network, every single node has to process that code. So if, for example, you had a big 3d animation sequence that you wanted to have rendered, you would not just send that code off to the network to be processed. You would have to pay to have every single person on the network process that job for you, an…
> There's one point in particular that took me a while to grasp: while you can write code that runs on the Ethereum network, every single node has to process that code. Yep. Unfortunately the creators of Ethereum marketed it heavily as a "world computer" on promotional roadshows, claiming it would replace Facebook and whatnot. Perhaps more interesting is that, in my view, Ethereum has it wrong: re-executing computati…
How would Ethereum “replace Facebook”?
Re: What Is Ethereum?
#98What is Ethereum _useful_ for? When would I need it? Why is AWS (et al) not sufficient?
Decentralization and auditing. If you put some code on AWS there are two potential issues. Firstly you don't know if AWS has actually run your code. They could potentially replace your code with their own modified version which does something malicious (like add a bias). For example in a voting system, code could be modified to ignore X percentage of unfavourable votes, or change unfavourable votes to a more favourab…
Thank you.
Re: What Is Ethereum?
#99Earlier quoted context omitted.
File storage: Swarm, and several other file storage protocols getting integrated with Ethereum. Computation: pretty much the whole point of the Ethereum VM, plus there are a couple projects that put proofs on the blockchain of larger computations than the blockchain can handle. Prediction markets: Gnosis and Augur Efficiency: at least developer efficiency, in my experience Economic layer: because you have reliable cu…
Does that real code actually increase computational efficiency, or does only merely have the potential to do so? Real code that doesn't provide the stated advantages doesn't mean much, right?
I'm in to prediction markets, but both Augur and Gnosis look like vaporware. Almost no volume on Augur and many poorly defined events to wager on (cost of having user generated content). Gnosis just looks like a fancy landing page and attempt to fundraise via ICO.
I have long-term hopes that decentralized currencies let us build some interesting products, but there's massive volatility against fiat when holding crypto, which makes it hard most people to want to use these auxiliary services
Re: What Is Ethereum?
#100How important is the adoption of Solidity for Ethereum's success?
I don't think it's very important. There are several other languages that can compile down to EVM bytecode. A cool one is Viper ( https://github.com/ethereum/viper ), which is NOT Turning complete, but decidable. This makes it easier to reason about the correctness of the code, and formally proving that your code is correct.
several? Really? Please link me other languages that compile to EVM bytecode.