No one is ever concerned with how much energy is used to feed ads to the entire population of earth 24/7.
Please propose a law or regulation structure for significantly reducing or eliminating advertisements. I’m serious. I fucking hate ads. I just don’t have a reasonable or effective way to get rid of them.
Edit: Hey actually I just thought of one! If the consumer is paying for the product, it can’t come with ads, including things like product placement or ad reads!
In São Paulo, one of the biggest cities of the world, the municipality forbade by law all billboards and building disfiguring ‘decorations’ some 10 years ago. Since then, the city became much more bearable, aesthetically. Nothing special happened, everybody was happy, except a few bankrupt ads agencies. Maybe, you must be able to imagine that change is possible. However, there is this ideology, Americans seem to be so fond off, that seems to make such things very difficult.
New Jersey also banned billboards. That one is pretty easy and I vote that we should adopt that policy everywhere. It’s much harder to control digital adspace, since you can do things like astroturf campaigns and product placement. Great point though! I like that law.
Hey actually I just thought of one! If the consumer is paying for the product, it can’t come with ads, including things like product placement or ad reads!
Smart TV manufacturers: “Impossible!”
Ban advertising to minors/for products intended for children
Ban ads/branding visible from roadways to prevent distracted driving
Yes, those two are the most important and shouldn’t even be that hard to push. There are many laws that were pushed “to protect the children”, we might as well finally make some that actually do protect them.
Serve ads inside the ads. It’s more power efficient—kill two birds with one stone?
That’s called product placement in a Disney movie
Didn’t go too well with The Marvels lmao
Actually I don’t know if there was any product placement in The Marvels because like the rest of the world, I’ve not seen it either.
ads don’t go unless capitalism goes
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Make sending unrequested data like ads and trackers to web clients a crime akin to gaining unrestricted access to computers. No need for a new law, just a new interpretation on an older one.
Most jurisdictions prohibit unauthorized access to computer systems. What if we just say, “running Javascript code that implements functionality not specifically requested by the user is unauthorized tampering”.
Got a better one: just ban marketing outright
Are we all here because somebody “advertised” Lemmy on reddit?
Where does it stop though? Will TV and super bowl still exist?
What about Facebook, the credit bureaus and Twitter? They’re all a waste of energy too.
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Same with porn. But I’m building a shake-power generator for fleshlites so it should balance out the power it pulls. Saving the earth one jack-off at a time.
Charging a hybrid car battery only takes 253.4 jerks. Pretty soon we will be expanding our charging service to parking lots across America and Canada! Most of them already have people willing to do it for you already …they were doing it there anyway… Win/win.
Powerjerk ™, we make perverts work for you!
Just roll up and say “Hey Jagoff, I need to get to x!” And you’ll promptly be taken care of.*
*Do not give them drugs to speed up the process. We are serious about our drug-free workplace.
Edit: steal my idea and I’ll find you
Energy isn’t free. More power captured from jerking will increase food consumed, meaning more energy used in farming. You’ll have to brand this as either a carbon
capturefapture system or as a weight loss program1 kilowatt hour is about 870kCal.
Humans are incredibly inefficient power generators. I can buy 1kWh of electricity from the grid for about 18 cents (generation…transmission is extra).
I don’t think I can buy 870kCal of food for 18 cents. Certainly not a healthy source. And that’s even assuming 100% efficiency. Any high school physics student will tell you that won’t happen.
Drinking one gallon of gasoline has enough calories to keep you alive for the rest of your life.
Join our team of Jerks. We have a stiff sign on bonus.
By chance are you good at “shooting ropes”? Our clients love ropes.
The new Weight Loss Jerkoff System could solve part of that
The studs at the local Blue Oyster don’t call me Spider Man for no reason.
Porn is more beneficial for humanity than imaginary ownership.
Capitalism is based on imaginary ownership.
Nailed it.
Bur, what if they prematurely finish and my car isn’t charged yet?
Fired!
I have one word for you:
Service Level Agreement.
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I have an ancient hermetic method of getting off that requires neither computer or phone. Enquire within if you seek this ancient knowledge.
Please elaborate
For only $99 USD all will be explained via a one on one Webinar.
What a deal! I can’t lose!
I am. Same loop of crap blasting on 20x massive screens 24/7 at the station.
Every store that keeps light on at night is also an ad.
My hate for them is one of the main drivers behind my radicalization.
My grandfather worked in the ad industry and couldn’t stand ads. He’s always mute the TV when they came on and we sat in uncomfortable silence.
What do you mean ‘uncomfortable’?
Well I was like 25 when I took care of him for two weeks and a pretty hard partier so silence wasn’t really my thing at the time. I’m in my 40s with 4 kids so I’ll I love silence now. I’ll even stare at walls.
Well, we weren’t very keen on talking in the family when I grew up. I can’t remember if we sometimes talked while TV was muted because of ads, but when we didn’t talk it didn’t feel awkward. If anything, it felt awkward to ever talk to each other. Not the healthiest upbringing in my mind ¯\_(ツ)_/¯
At least lighting has become more efficient than 20-30 years ago.
Most people aren’t loudly in favour of that, especially not the ones concerned with the power usage of blockchain
Perhaps, but you also never hear them complain about it anywhere near as loudly as people complaining about blockchains.
Yes, they’ll grumble about ads being annoying or YouTube blocking people who block ads, but the amount of power that gets wasted on this never even crosses anyone’s mind, meaning on some level, there exists agreement that advertisement are a necessary and responsible use of electricity while blockchains are not.
That’s because ad serving doesn’t set a lower bound on the electricity price. The value of crypto and the value of electricity are linked.
For the sake of simplicity I’ll just say Bitcoin.
If the price of Bitcoin stays constant (big if), and the rate of Bitcoin per watt does too, then everyone would start mining until the demand for power is so high that the price increases until it’s as high as the Bitcoin per watt.
Sure, they are unrealistic assumptions, but it’s easier to see this way that the value of Bitcoin is (almost) the same as electricity. If it were lower, noone would mine it, if higher, people would buy electricity with bitcoin for a profit until the 2 equalize.
Electricity will never be much cheaper than Bitcoin, market forces will make sure of that, causing a huge environmental impact. Ads, however, only use as much electricity as they need to operate, their amount is not decided based on how much electricity they waste.
Honestly, it never fails to surprise me when on a presumable anticapitalist forum such as this one, someone makes a passionate argument in favor of some of the most ghastly corporate practices known to man, but sure, let’s put that premise to the test, shall we?
Here’s a good article on the power consumption of Bitcoin, which estimates around 110 TWh/yr.
Here’s one on the electricity use of online advertising, which estimates somewhere between 6.5 GWh - 131 TWh/yr.
Shall we call it a draw? Keep in mind that online advertising is a fast growing industry (and likely to continue to grow in the future), whereas Bitcoin’s power use isn’t likely to grow too much, as the above article explains. Also keep in mind that this is JUST online advertising, and completely ignores print, TV, and those digital billboards that are spreading everywhere from Times Square to your local grocery store. Think about neon store signs, illuminated billboards, etc.
Also, that’s just the cost of delivering ads to people (i.e. it doesn’t even include the cost of producing them). Think about how many people work in advertising – all the offices they occupy, the computers, cameras, and whatever other equipment they use, business flights, what have you – and I’m pretty sure the carbon footprint of the entire industry far outstrips that of crypto.
But sure, crypto is the real problem.
I see you completely ignored my comment. The problem is not the amount of electricity used in itself, which the estimate of 6GWh-130TWh is as precise as shooting a dart at the moon.
Crypto uses energy for the sake of using energy. The value of crypto is based on the amount of energy used to create it. It’s not valuable to society. That’s what people is upset about. Crypto provides even less value to society than ads do.
Even you said it, ads spend energy because they employ people, those people generate value.
That’s like saying we should stop heating homes because it consumes more energy than crypto mining. Hose heating improves the quality of life of people. Crypto does not.
Yes but what about this whataboutism? And honestly I am fairly certain it ain’t as much as Bitcoin. People usually focus on 1 thing to get it done because moving to the next. I bet you try to do that at work too.
No way ads consume less power than bitcoin. Just the lights for ads probably consume more than bitcoin, not even talking about creating ads, which I assume consumes a double digit percentage of the global work force.
I did a back of the envelope a few comments up. How it looks to me, just sending internet ads around the world consumes 20 times as much as all crypto mining combined.
You assume wrong. In the UK, about 0.3-0.5% of people work in marketing or advertising, and that’s one of the most extremely financialised service economies in the whole world. No way is the number anywhere near even that high in countries where people actually work for a living.
Thanks for the correction. Slightly overestimated 😁
Yeah, I mean it’s still an insanely high amount IMO, you’re not wrong in the sense that it’s “way too many people”
Yes but what about this whataboutism?
Blockchain user.
What are you on about?
Lets do an advertising tax 10% of all add revenue.
Unironically this.
I went and did some mafs.
This thing says the world consumes 180k TWh of energy per year.
Apparently, 48% of consumer web traffic is ads.. That is dystopian in itself, that means around half the content floating around the internet is stuff the client does not request but is pushed to them.
That would put the ad industry at 4500 TWh per year. However, this is back of the envelope.
Going off of this, a high estimate for crypto mining is 230 TWh.
That means the ad industry costs us around 20 times the cost of crypto in terms of power. Feel free to check me because I don’t know shit about most of these things.
That said, this does not account for the entire ad industry, just the cost of sending internet ads around the world. Ads are made, ads are displayed in various media other than websites, and most importantly, ads have the sole purpose of driving further consumption, which all contributes to the societal costs of the ad industry.
48%? Fuck i love my adblocker
Tbf most ads are on text news articles, one image can take up thousands of times more data than a few words.
And it’s cached… and there are CDNs… Still way more energy than you want, but not quite as panic inducing as it sounds.
Damn, I knew the numbers would be crazy, but that’s absolutely bonkers.
Or how much is spent on the global banking industry…
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Exactly! Blockchain and PoW are terrible but id really like to know how much time and electricity is consumed to serve ads, cool servers, train and educate people to effectively become ad engineers.
That’s such a great point wtf
That is why I only block ads when I’m on a plane 👍
How much does facebook, the banking system Google search need and does it even make sense to compare this against a small country?
Or that tumble dryers in the USA alone use more energy than Bitcoin.
Instead of actually talking about it you’re lazily using it to deflect criticism of unsustainable cryptocurrencies. Your input was worthless.
Yes, but it’s almost certainly a multitude less electricity than bitcoin.
it’s almost certainly not
Yea the rally against block chain tech is stupid as fuck. It consumes nothing in the grand scale…do people not realize a lot of large enterprises have ~200k nodes give or take? Bigger companies can have in the million range. 200k machines is a joke.
Edit: I can see a lot of people just hate block chain tech without understanding anything tech wise lol
The nodes aren’t the issue. It’s the fact that those nodes have to expend at least the same amount of energy every single time a record is added and the larger the ledger, the more energy is needed. Blockchain is somewhat unique in that regard.
It really feels like SOMEWHERE there was a legitimate use for this for very mission-critical stuff that might need to be immutable once published and kept for posterity…
…but then it just became yet another speculative asset to make magic money that fueled stupid monkey jpegs.
The pursuit of profit benefits mankind only by the occasional anomalous accident.
100%. Capitalism is great until it reaches a peak where people who provide no value except in the wealth they’ve amassed are the ones who gain the most from it. You can succeed simply by being born with wealth and having no other value because other people who do have value will need you.
This, exactly. Blockchain could have been used for tracking information publishing dates and such, but it is used for converting energy into IOUs
The point in OP is that “blockchain” was not a new thing. The Merkle Tree was patented in 1979, meaning that it has been free for decades. Most programmers might never have a use for it but they still encounter it every time they use git (which is older than bitcoin).
So, if you’re not aware of this, that’s because it is very technical and nothing to do with cryptocurrencies.
You do understand what a DB is right? Like there’s millions of them…hell right now typing out this comment has one marking it. And then you’re downloading it to read it… that’s a transaction. Except there are millions of people reading comments constantly on all social media platforms.
My comment here has more bits in it than a single transaction.
With the electricity used to validate a single crypto transaction you could do thousands or even millions of DB queries.
Yes, everything uses electricity. That’s like saying that it’s fine if you kill one cow per day to eat its ear and throw the rest because hundreds of them are killed every day in farms.
Wasting so much electricity in such a non efficient manner so a decentralization cult member can have his wet dream of using non-government money makes no sense.
DBs are not the same as a blockchain. A DB doesn’t have to hash all previous data before it every time the DB is written to. You can read and write to a specific spot in a DB without ever knowing anything else about the DB. With blockchain, inserts have to be successive and they have to reference every previous insert to validate that the entry series is unbroken. On top of that, for things like Bitcoin, every other client also has to validate it since the ledger is shared.
There’s a reason blockchain is significant. Otherwise, why didn’t stuff like Bitcoin exist prior to it? Databases, in some for or another, have existed for decades. Blockchains are immutable, that’s why. The order of entries matters and validation is a requirement.
DBs still update their tables every time someone writes to it. And there are millions of DBs being written to every second. It’s absolutely comparable.
We’re not comparing millions of DBs to a single blockchain. We’re comparing 1 DB to 1 blockchain instance. If you had millions of blockchains, you would use exponentially more energy for the same data vs. a normal database. Updating tables is not the same thing as hashing and validating every prior entry in the table.
There aren’t millions of block chains…lol your argument is bullshit.
You don’t even understand blockchain so I’m not sure what your edit is all about. You’re comparing blockchain to a database in your replies as if they’re comparable.
When it comes to power…it absolutely is comparable…but most of you have no clue how much compute we use daily in terms of power. Acting like the block chain sucks down anywhere near the amount of power we use on even in the corporate world is hilarious…you know a lot of colos have their own sub stations right?
The only person here who doesn’t know what they’re talking about is you. If you took a standard DB (MySQL or Postgres, for example) and took that same information and stored it on a blockchain instead, you’d use far more energy on the blockchain and the issue would only get exponentially worse as the chain got bigger. Normal DBs don’t need to hash new entries or validate them against previous entries that are also hashed.
Yes because there are millions and millions of block chains…lol don’t fool yourself into knowing what your talking about.
And yes DBs are only one DB no one ever has HA stacks or redundancy built in…lol
Are you dense, man? No one said that. They’re saying that one blockchain would take several hundred DBs to equal its energy use. You’re wrong and doubling down for some reason and it’s just making you look silly.
I said that genius…go check my posts…the fuck you arguing about? I literally said that the amount of DBs we have make the miniscule amount of large block chains out there look like nothing. Then you show up and say one DB isn’t comparable to one large fucking blockchain…no shit.
Yeah, people tend hate what they don’t understand. Especially when most people think think every blockchain performs exactly like bitcoin (which is proof of work). Bitcoin is slow and power hungry and would never actually be usable by the masses for everyday transactions. But it was the first and will likely be a “digital gold” for a long time
But it’s not the only one and in time everyone will be using blockchain technology. It’s so much more convenient and useful than most realize. The Solana blockchain has secured a big partnership with Visa that can be read up on if anyone is interested.
Distributed hashed linked list is so yesteryear. These days we’re into text autocompletion instead.
Hey, it’s not just fancy autocomplete!
Thanks to years of innovation, it’s now copyright infringement as well.
I wish copyrights will die to this technology! <3
The thing is its only the copyrights of individual artists and creators that will die to this.
The big corpos will find a way to protect their value, just you wait.
They will steal from every single creative in the world and then sue them to hell and back if they use anything they them selves “own”
This is not a threat to the copyrights that you want to die.
I can’t help but agree.
I hate things like patenting game mechanics and the RIAA throwing people in prison over mp3s, and everything Disney does.
But as an artist I’d also feel kinda, no, REALLY, shitty, if the second I put my human soul into something that got any kind of attention, it was (now legally) ripped off and everyone but me would make bank off of it.
Tshirts, plushies, videogames, a major corpo making a bugillion dollar movie. . .and very quickly nobody would even know I did it. But we still have bills to pay and all the rip-off sandfleas dropshipping my intellectual labor would say “Get a real job then lmao.”
How many games has Facebook or Zynga ripped off of small time creators and shoved them into obscurity just because they have the money and visibility?
Imagine how much it sucks to hear people describe your 5 year old work as “Oh that’s like a clone of that 2 month old Facebook game.”
Talk about punishing creativity. Everything would be like it is with AAA games and Hollywood now but worse: Trapped in a time-bubble of rip off fanfic of whatever hyper-consumer “fandom” that generation grew up with.
I think the people sincerely pushing this “eliminate copyright entirely” idea are the same “idea guys” that think prompting a robot will allow them to finally “tell their story” with the most minimal of efforts.
They’re fine with intellectual theft because the burden of forming one’s own personality not defined by consumption has already proven too great to bear.
…and their masterpiece will belong on the infinite trash heap of everyone else’s story that did the same thing…
TL;DR: Keep copyright. Fix public domain laws. Tighten the leash on corpos.
You are a fool if you think copyrights can protect anyone but the big corporations.
Copyright are a cancer for mankind, they should disappear.
Well they do… But only barely and less so in the US lately.
There are still cases of small artists getting compensation for big business using their images or music without consent. But sadly it is far from the norm.
I agree with your core sentiment. Copyright is not working how it was intended and it is being abused by corporations.
It might be because I’m not American, or because I am a musician and songwriter myself. but I still see a point to having some laws protecting the rights of the creative mind behind something.
Removing copyright completely will only make it even more easy for the guys with the money and resources to exploit the small independent creators.
But (American) copyright is severely broken. This is true.
A starting point would be that the right is only tied to the specific creative(s) actually involved in the creation of something.
While I understand where you’re coming from and the hope you may have in copyright, we don’t agree. I firmly believe copyrights are a cancer, an aberration that can only worsen things, especially in the age of Internet.
The paternity right (that’s how what’s you referring to in your last sentence is called in France) may not be completely harmful, but history proves it’s useless imo.
Well I’ll be a little more enthused if that would ever apply to regular people as well, rather than just people with several billion in VC money to buy lawyers.
You are a fool if you believe copyright would ever protect anyone but mega corporation and rich bourgeoisie. It never ever protected the poor artists and creators, save for those one or two examples you will certainly provide to counter my argument.
I completely agree.
The philosophy behind modern copyright is completely out to lunch.
You don’t hate copyright.
You hate that entertainment megacorps have set up a massive toll booth between creators and audiences, thwarting their ability to connect and collaborate, and crippling the average person’s ability to meaningfully participate in culture unless it happens to be profitable for those in charge.
And soon you will hate that AI megacorps have set up a massive toll booth between creators and audiences, thwarting their ability to connect and collaborate, and crippling the average person’s ability to meaningfully participate in culture unless it happens to be profitable for those in charge.
What they did to us by forcing us to obey copyright, they will now do by disregarding copyright.
You can be pro-piracy because it distributes power, and be anti-AI because it consolidates it, without legitimizing copyright as a fundamental principle of ethics.
You are mistaken. I do hate copyrights like the plague they are, because they are chains for knowledge and culture. And I do not hate AI, but I hate corporations for taking technology, progress and their benefit to themselves and to oppress society, and this thanks to the secret they keep and copyrights.
Sharing of knowledge and culture is the solution, not the problem.
Clearly we see the word “copyright” very differently, so I’m wondering if it’s maybe a useless term for us here. I’ll get more specific about what I see as being valuable, and maybe we’ll see that we agree on some of it.
I like that the law, by default, obliges people to attribute works accurately. It helps me find the stuff I like, or to fact-check sources.
I like that the law, by default, obliges copies to remain faithful to the original. This is the other half of attribution. Attribution isn’t worth much if it’s not exactly what the original creator meant. That was a big problem in the period immediately following the printing press, and we already see it cropping up again with reactions/stitches/duets, and it’ll probably escalate with AI.
I like that I can eagerly share all of the shitty code that I write, slap a non-commercial share-alike clause on there, and know that it’s illegal (not that it doesn’t happen anyway) for a megacorp to shunt it off into a for-profit, closed-source venture. If I couldn’t do that, I might just not share it at all.
I like that I can – or at least, I used to be able to – find the person who made a thing I like, because the search results didn’t used to be an endless flood of copies/reposts of it.
I don’t like that the primary employment model for artists and inventors is to have them instantly assign all rights to their creations over to some holding company that doesn’t have a creative bone in its corporate body.
I don’t like that they often can’t even produce derivative work on their own dime in order to engage with the fanbase that they themselves built.
I don’t like the trend of “reaction videos” where a media group with clout and deep pockets can scoop the work of a no-name creator, say “lol” a few times or just leave a livecam of an empty chair, and rake in mad dollars while the person who did the hard work gets a mere trickle of support from the 0.0001% of viewers who bother finding the original.
I don’t like that a holding company can just sit on an IP and do nothing with it. I also don’t like that they can sell it to another company that will disrespect the creation as they milk it for every last dollar.
I don’t like that fans are often shot down or prosecuted when they try to make remixes or tributes to the stuff they love.
I don’t like that people who can’t afford to pay – or are just geographically in the “wrong” location – are cut off from accessing knowledge and participating in culture.
–
I don’t like tech bros treating culture like a raw material to be mined and refined, with no respect for the fertility of the soil in which it grew.
The stuff that I like… I don’t just like it because of what it is, but also because of who made it, and where they were in their life when they made it.
The fact that their viewpoint, at that moment, is inseparable from the artifact that’s a mere shadow of that moment… is part of what makes life worth living, to me.
What is “Fate of the Animals” without the wild story of Franz Marc’s fever dream, his subsequent death, the inscription on the back, the warehouse fire, and his friend’s restoration? Just pixels? The pixels are just the reference point. They’re the SHA256 of that story. Disconnecting the story, seeing just the hash… It does some kind of damage to humanity as an enterprise.
Copyrights don’t do shit for controlling sources and trust on Internet. You are mistakening things. Copyright is a framework of laws to enforce rarity and property on immaterial things. Patent is another way to it much more reasonably. Trademark is a third way. None of those is worth anything.
Imposing rarity and property on things that can be copied and transfered freely is a cancer for mankind.
Now there is what in France is called paternity of a work. Unfortunately it’s tied to copyrights in the law, but it’s still its own thing. I don’t care much for it. It didn’t existed for ages and it didn’t prevented mankind from creating all kind of stuff.
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Autocomplete is the most important thing in your life.
That sentence was brought to you by autocomplete. Autocomplete, you know it and you can do whatever you need.
This is revolutionary
The real charlatans were the “the technology has promise” people. No, the technology was dumb.
He says on a decentralized platform that became popular because the centralized equivalent became hostile towards their users.
“Blockchain” and “decentralised” are not interchangeable words
Yes, in the same way that federated and decentralized aren’t interchangeable.
You’re dodging the point that being in favour of decentralising doesn’t mean being a blockchain bro
So are you pushing a non-blockchain based decentralised ledger solution then, or did the point they were dodging actually just go over your head?
I’m not pushing anything, but yeah, anything other than blockchain
Well, it’s been about 15 years, and everything else we’ve found so far has been shitter. So just, give up on decentralisation I guess?
I don’t think Lemmy counts as popular yet.
If you want a trustless system, you have to sacrifice performance. At least the proof of stake blockchains like Ethereum don’t use that much energy, and you get a pretty cheap and fast transaction with layer 2 solutions on par with credit card transactions.
Sure, but what real-world problem does a trustless solve? I thought this was all very interesting years ago but now that we’ve had blockchain for years it seems it’s only good for illegal or morally questionable transactions.
Would you trust your money with a bank in China? It was only a year ago that people lost their savings and couldn’t withdraw money for food after a major bank was on the brink of bankruptcy due to the Evergrande scheme.
I guess you can call it questionable, but if I buy a VPN, I’m not going to pay with a credit card linked to my name. I use Monero. If I want to transfer money to my family in another country, crypto is faster, cheaper, and has no restrictions. I can’t even pay my student loans from my home country because my current bank blocks foreign credit card transactions, even if they are important.
This is very niche and not something an average Joe needs, but cryptocurrency isn’t for the average Joe to begin with.
See I think more nuanced takes like this are good. I’m not familiar with the Chinese banking issue that you are describing, but it sounds like deposit insurance (like the FDIC) might be a better solution than cryptocurrency, and it’s definitely better understood. Since the real world value of cryptocurrencies are so volatile they are a questionable store of value, and taking a risk on a poorly regulated bank might be better than taking a risk on storing your money in a volatile and unregulated security like cryptocurrency. Honestly it’s hard to know which is the better risk. So it could be better or it could be worse.
I agree with your point about transferring money internationally, and even within the US transferring money used to be a real pain. So I’m still interested to see if cryptocurrency can be a better medium of exchange or medium of transfer than traditional ways, or at least give traditional systems incentive to improve. But again the volatility is a concern so for most people the best move is probably to get in and out of the crypto market as quickly as possible or else risk getting a vastly different amount of money out of it than you put in. Admittedly it could appreciate, but when I’m transferring money to someone I don’t want that to simultaneously be an investment. The few times I have used Bitcoin to purchase something the whole process has taken hours, and there’s no guarantee there won’t be price swings — a lot could happen in those hours.
I appreciate the brutal honesty about cryptocurrency not being for the average Joe. It’s not that long since many cryptocurrency boosters were hoping it would replace fiat currency, but now that I think about it I haven’t heard as much about that recently. In its current state it is really not for the average Joe.
Legal money transfers are not a use case. Crypto is simply much more expensive to maintain. All these mining rigs and all that electricity must be paid for.
If it seemed cheaper, then either:
the banks were charging inflated fees. That can be fixed only once. (And it should have been fixed by government).ETA: Doesn’t work, after all. It can only be the other 2.- It was masked by price fluctuations. Eventually, someone else must pick up the tab. Can’t work long-term.
- Costly regulations/taxes were dodged.
Under the spoiler is something I wrote recently to explain how crypto is not like stocks.
spoiler
Let’s look at how stocks get their value.
A company sells shares to get funding. Say, you want to make microwave dinners. You need to hire people, an industrial kitchen, packaging and packaging machines, ingredients, and probably a whole lot more. The company takes in revenue from selling the dinners, which pay for the running costs. Anything above that may be reinvested or turns into profit. The profit is paid to the stock-owners to pay them for their investment.
Now the question is: What is the value of a stock?
Imagine you take out a loan. That gives you money right now, in the present. You pay back the loan with the money that you get from your stocks; your share in the profit. Now imagine that the company goes out of business (and the value of the stock becomes $0) right as you are done paying back the loan + interest. Then that loan was the present value of the stock.
In theory, the value of a share is the present value of the future money that you get paid. Of course, one cannot know how much that is, so this is useless for actual investing. Still, the market price of a share should be the best guess of people with money. If the stock is trading higher than someone’s guess, they sell. If it’s lower, they buy. So the market cap should reflect the future profits.
But what’s the value of a crypto-coin like bitcoin?
Let’s start by thinking only about a coin being used to transfer money. And to make it easier, let’s say that coins are only exchanged for money once a day.
Say people want to transfer 10 million USD each day. The senders buy coins for 10 million USD. They don’t care how many coins that gets them, only that the coins represent 10 million USD. If there are 2 million coins being sold on the market, then each coin must transport 5 USD and that will be the market value.
New coins are constantly being “mined” to pay for the upkeep of the system. Let’s say that’s 100,000 coins per day.
The intended receivers of the 10 million USD sell their coins to get the money. The miners also sell their coins to pay their bills. So the next day you have 2 million + 100,000 coins on the market. The senders again want to transport 10 million USD, so they buy the 2,100,000 coins on the market. The market value of a coin is now ~4.76 USD. Adding more coins lowered the value of the coins. That is inflation. The “missing” money goes to the miners to keep the system running. That’s not a problem for senders and receivers. Transferring money costs money, however you do it. (That crypto is an extremely expensive way to do this, is one underlying reason why it has no adoption as a payment system in the normal economy.)
So far, you wouldn’t expect anyone to store or “hodl” coins. The value is just going down. But obviously, this is only true as long as the amount of USD to be transferred stays constant. If the system is more widely adopted and more money is transferred (outpacing the inflationary effect of the newly mined coins), then each coin has to transport more USD and the “value” goes up.
Now, if you believe that adoption continues to grow, it becomes a reasonable strategy to stash some coins to sell them later at a higher “value”. Maybe the problem is already obvious, but let’s continue to take it slow.
So, let’s say, it’s a bit later. There are 15 million coins and they are to transfer 100 million USD. The market price of a coin is now $6.67. (Let’s also say that there are no more coins being mined and the upkeep is paid some other way.) Now we bring in some venture capitalists. One day, they buy coins for an additional $50 million. Now the coins trade at $10 per coin. 15 million coins bought for $100 million + $50 million, right?
The VCs now have 5 million coins. But note where the money went. It went to the transfer receivers when they sold the 15 million coins for $10 each. They got a windfall profit. That’s how it goes in crypto. All the money that people “invested” by buying coins is gone. It was either used to pay miners/for the system upkeep, or early adopters took it and ran. It’s all gone. That’s the big difference to shares.
If the VCs sell their coins again, they lose. Because when there is only 100 million USD in the market for 15 million coins, they would only get 6.67 USD per coin. The money that they spent is gone. If they want to make a profit, new money has to come from somewhere. There are only 2 ways to achieve this.
One is continuing adoption. If more money were to be transferred, with the same number of coins, the price goes up. They can siphon off some of that money by selling into that market. But that lowers the price again, so that only yields a profit if adoption increases enough.
The other is that someone else also removes coins from the market. If there are fewer coins for the same (or a decreasing!) amount of money being transferred, then the market price will also go up. (In this scenario, too, they would be siphoning off money that other people are trying to transfer. The cost of transferring money would be increased for no very good reason; not a great feature in a payment system.) But note that this, too, lowers the price again. That only yields a profit, if “hodlers” sequester the coins sold by the VCs for a higher price than the VCs paid.
I’m not saying this is a Ponzi scheme because everyone has heard that already.
So that’s it. If you want to know the effect of 50k bitcoin on price, you need to look at the trading volume (minus wash trades): How many bitcoin are actually “in use”? You also need to know how many of these coins will be promptly removed from the market by “hodlers”.
Legal money transfers are not a use case. Crypto is simply much more expensive to maintain. All these mining rigs and all that electricity must be paid for.
Various currencies are moving away from the proof-of-work model, FWIW. Ethereum was mentioned in this comment chain as one of them.
Which doesn’t solve the economic problem. (Good for the environment, though)
Ethereum has proof of stake. That means someone has to deposit Ethereum, tying it up. It could be exchanged for money and invested in stocks or bonds, yielding a return. This is only economically feasible if the stake yields the same return as a comparable investment. This profit has to come from the users.
A competing payment system, based on sensible, modern technology also needs computers and the internet but not a stake. It must be cheaper.
The stake is supposed to keep people honest, because it can be taken if fraud is detected. Normally, fraud is dealt with by putting the perpetrators in jail. Being known by name is proof of stake.
Users have to pay extra just so that some kingpins in the back can remain anonymous. Do you want to for that?
It also doesn’t solve the other deal-breaker (in the spoiler). Whenever you transfer money through crypto, you risk that some “investor” siphons off some of it.
Since the real world value of cryptocurrencies are so volatile they are a questionable store of value
It will not be so volatile if it’s primary means of transaction for everyone(obviously not yet). Value of thoose cryptos are just like the values of normal money in different countries.
For example, if you can buy an apple for 10 shitcoins, instead of buying it in USD, then the value is not volatile. The problem arises when the apple is 5 USD and you have to transfer the shitcoin amount which is equal to the exchange rate of 5USD at that time.
This is true, but it’s hard to see why we would ever move from fiat currency to cryptocurrency as the primary means of exchange. Currently cryptocurrency’s advantages are modest and its disadvantages are substantial, and I haven’t seen a lot of movement toward fixing that balance. I’d like to give traditional finance channels some competition to reduce fees, lock-in, and inconvenience, but cryptocurrency is going to have to get a lot better for average people if it’s going to be a real alternative.
Advantages of cryptos is that they are decentralised. Just like lemmy is decentralised, no single entity or government control the money. Transaction happen from peer to peer. No middlemen involved. I don’t understand the disadvantages yet except environmental concerns. I heard coins like ethereum switched to proof of stake model which is more environmental friendly.
I don’t understand the disadvantages yet except environmental concerns.
As you point out, PoS basically solves the environmental concerns. (Some people might say it still consumes too much power but I disagree, I think power consumption under PoS is acceptable).
This is just my opinion, but I think the big disadvantage is cryptocurrencies are a pain in the ass to use. Lengthy story about what a pain it’s been to use them in Spoiler tag. I think this story is a bit of an outlier since I hit all of these issues, but the fact that a technically inclined person who is just getting back into cryptocurrency after a long hiatus can have this much trouble with it does not speak well use ability or safety.
::: I have a few coins I mined back in the day (before switching all my computing power to BOINC), and I saved off my wallet.dat from those wallets. I wanted to use them recently, so I reinstalled the wallet software. That worked, but then I had to download the entire chain again, so I had to wait more than a day to actually use the coins. Putting cash in a bank is faster if I’m already a customer of the bank. If I’m a new customer I might have to wait, but the point is cryptocurrency doesn’t have a clear advantage here.
The coins I had weren’t Bitcoin, but the shop I wanted to buy from only accepts Bitcoin. So then I had to exchange mine for Bitcoin and pay transaction fees. I guess you could say it’s my own fault for holding a less-popular coin but I’m not sure cryptocurrency is living up to its own hype if there’s exactly one or two coins that you have to use, just like how in the US there’s no real alternative to USD.
I found a no-account exchange, and I had to carefully enter keys and figure out amounts of coin > BTC. And I had to trust the exchange to give me what I wanted. If the no-account exchange didn’t exist, I would have to create a whole new account on a website I don’t entirely trust just to exchange one coin for Bitcoin. That’s a layer of trust in a “trustless” system. I also don’t like creating yet another account with my info in it — yet another way that cryptocurrency is not better than traditional finance.
Then not only did it cost transaction fees, it took hours for the transaction to go through. I could pay more for it to go faster, but now we’re talking about fees that far exceed those of credit cards or regular money transfers. Then I had to send the Bitcoin to the online store and wait for that transaction to clear. More time and more transaction fees. The purchase worked without a hitch, but it wasn’t any better than using a credit card.
I had to buy extra BTC because it’s really difficult to know exactly how much you’re going to pay including transaction fees, so after the transaction went through I tried to turn my remaining Bitcoins (I think it was worth ~$13?) back into the kind of coins I keep, but I set my transaction fee too low and the trade I set up expired before my coins went through. Luckily I had given the exchange a refund account, but that meant I had to wait over 24 hours before my transaction actually happened, and then the exchange had to send back my Bitcoin, incurring fees at each step.
While waiting I tried to cancel this Bitcoin transaction, but the software I used didn’t support that. So then I tried to extract my private key to enter into another piece of software, and that was surprisingly difficult. I thought cryptocurrency was supposed to put me in control, but without a LOT of technical knowledge I was just as powerless as I’d be with a bank that froze a transfer. I asked for help on a few forums and some people tried to help but the whole thing was confusing and eventually I had to give up and just wait for the transaction to go through.
Then I had to do the BTC > mycoin transaction again, and this time I think the fees were 5-10% of the amount I was transferring. That’s way more than Venmo’s immediate transfer fee or even credit card fees (I think those are around 3%?).
I will say that during this process I discovered the Electrum wallet, which is very good and works on a lot of platforms. Some of the issues I had would not have happened if I had used that all along. But there are so many wallets out there it’s hard to know which one is best and obviously when I started this process no one told me it was the best. And maybe it’s not and that just my opinion.
In summary, I’m interested in cryptocurrency and kind of enjoyed using it in the way learning new things can be fun. But it was slower, less convenient, and more expensive than regular currency. Cryptocurrency boosters are going to have to improve all of these problems before it’s competitive with regular currency, and I don’t see a lot of discussion about how much these pain points suck and how to improve.
:::
How would using blockchain fix the liquidity of a bank?
There’s a case to be made for a currency that facilitates illegal transactions, or transactions that corporations object to. Just because something is legal in your country doesn’t mean it might not be unjustly restricted. Or could just be unjustly illegal in your country or another country. The problem of course is that distributed currency also facilitates things that should be illegal.
But WikiLeaks is a good example - their legacy is a little mixed now, but when they first came on the scene they were doing work which was a valuable service to the public. If you wanted to donate money to support wikileaks you couldn’t because the credit card processors shut them off. Blockchain lets you get around that.
Likewise it’s the combination of distance and direct - I can give $5 in cash to my local leaking consortium, but I can’t give $5 to the leaking consortium on the other side of the world without relying on the knowledge and consent of third parties.
I agree there’s something to be said for this — If you have a above-board business that credit card companies don’t want to service because they think it makes them look bad, that should not shut you out of electronic payments yet that’s basically where we are at least in the US.
This is a little hard to balance with the fact that the same things that let you circumvent gatekeepers like credit card companies also make it attractive for genuinely immoral things, but that’s a trade-off. Every currency can be used for immoral things and just because cryptocurrency might make it a little easier doesn’t mean it’s inherently immoral.
You totally can give cash anywhere in the world. You post it as a letter
This was common before electronic transfer
Mailing someone cash means you need to know their address, you have to wait however long for the mail to arrive, you can’t prove they received the cash, it’s possible the cash was stolen en route and anyone who might wish you harm like an adversary government can observe the transaction.
With crypto you face similar problems. You need an address, waiting is shortr, rugpulls and other scams are one of the biggest use cases so getting crypto stolen seems common. You might be able to verify that crypto was revceved but as with any trustless paymet solutions the issue is that getting the item you ordered is the part where trust is needed the most. Good luck asking back money when you get an empty box.
You’re right about ordering goods and not having a recourse if they’re not delivered. Of course in the case of supporting an organization that will be less of a consideration.
In the case of needing to know an address it’s much different to give out an arbitrary string of numbers as an address than information which represents your physical location.
No disagreement that there are myriad examples of problematic uses for crypto. My first comment was in response to the question about what are valid use cases. It seems clear there are some, even if it’s not as universal as some true believers claim.
It will also get there faster.
It is illegal to send cash by letter.
Maybe in your country
It is in most countries
On account of it being so in yours?
Australia Post says they reject any liability if you do
The UK says you should use their premium service to do so
India says you can’t. It at least quora says you can’t in India
Quora says you can in Canada
I wonder why the UK and Australian searches landed on the national postal carriers and the others landed on fora
I was hoping it would help me save on international transfer fees when I was an overseas postdoc, but it would have actually cost more between the exchange fees and my time setting up all the exchanges in various countries, meanwhile also introducing risk in me being robbed of said money and screwing something up and introducing myself to some sort of tax liability. Needless to say, I continued to just pay for the bank transfers
That’s really the thing, isn’t it? In my experience cryptocurrency fees are quite high. I bet there’s a way to find a lower fee but then I’d have to do a ton of research and hope it’s accurate. I’d rather just pay a bank that requires me to do no research.
It cannot be cheaper, other than by avoiding taxes and regulation.
Consider sending money from US Dollar to Euro:
Sane way: An intermediary (IE a bank) handles this. You give them USD and they give the receiver Euros. This involves some service costs and 2 bank transfers.
Because people exchange money in both ways, the banks need not run out of either Euro or USD. In the background there is the currency market, on which the proper exchange rate is haggled out, which takes care of imbalances in cash flow.
Crypto way: You give a crypto exchange (an intermediary) USD and they give you crypto. This already involves 2 transfers and service costs. One of those 2 transfers is a crypto transfer, which is much more expensive (IE uses more resources) than a bank transfer.
This is already more expensive and then you have to do the same thing again to cash out.
And then we are still not done. Say there is an imbalance in that more people transfer money from USD to Euro than vice versa. That means that crypto becomes more expensive in USD and cheaper in Euro. There’s more demand in terms of USD and more supply for Euro, right?.
That creates an arbitrage opportunity. You can exchange USD for Euro, and then buy crypto for Euro to sell for USD. This closes the circle and puts everything back to the initial state. But to do that, we still have to exchange the real currencies. So now the markets bake the cost of exchanging currency into the crypto prices. At a guess, for some currencies (probably not so much Euro/USD), that would have a significant effect. I’m thinking smaller, poorer countries that send many migrant workers, who send money back home. These workers would not only end up paying the insane overhead of the crypto system, but also, still, most of the normal, direct exchange costs (if they relied on crypto).
It is less than a dollar
Also, the unbanked.
Also, privacy and anonymity (to an extent).
Also, complete predictability in the system (its at least domain constrained).
There’s no privacy, it’s an open ledger, only anonymity
It’s a bad way of hiding money if you’re about to be investigated for crime
Monero seems to be holding up in terms of privacy.
the unbanked
Can the unbanked still benefits from crypto these days though? How can you cash your crypto without doing KYC? Even localbitcoin got folded due to increased regulation. If you can pass KYC, then you’re probably not the unbanked. Less and less business accept crypto these days, it’s hard purchase daily necessities without cashing out your crypto (except probably in venezuela).
except probably in venezuela
I mean thats really what I’m talking about. Africa, Central and South America, I know they benefit substantially from technology, because local banks can be so unreliable.
An older article, but relevant:
Thanks for your input, dingdong.
Trusting Humans is literally a security flaw. Any system with trust you can find examples with fraud and abuse from those who held power by holding that trust.
We trusted bankers to invest our money, and some short sold the housing market with that money
I could go on, but trust really is a security issue. Decentralization has its efficiency issues, but saying “Bitcoin uses as much power as the 90th largest nation” is peanuts when you consider the energy inequality that America spends and compare what Bitcoin delivers with that energy versus how much energy centralized banks need to deliver a system that’s easier to fraud
Trusting Humans is literally a security flaw.
Exactly, and using Bitcoin does not solve that because you still have to transact with humans. If you buy something with Bitcoin and the seller never sends you anything, you’re out of luck. Your money is gone.
If you use a regulated financial system you have some options. If you paid with credit card you can charge back and dispute the charge. Your money in the bank is backed by insurance that is guaranteed by the government.
Bitcoin only cuts out the middleman. Every other issue of trust with the recipient still exists, and those are the problems regulation solves, and the reason fraudsters love Bitcoin so much.
Amen, exactly.
Ah yes Bitcoin, famously free of fraud and abuse.
More seriously, every system can be used for fraud. The question is whether the solution is actually better overall. We could prevent all wire fraud by returning to a cash-only economy. But that would be hugely inconvenient and therefore create a huge drag on the economy compared to a world where we can do electronic transfers even though electronic transfers open us up to wire fraud. Returning to cash-only is not worth the increase in security, and it opens us up to other issues (e.g., bank runs and someone stealing all the money under my mattress).
And while power use is a problem with Proof of Work coins, it’s not my biggest concern about cryptocurrency because Proof of Stake can fix that issue. It’s a shame that the biggest coin now is PoW but hopefully that will change. The bigger issue is “is cryptocurrency better than traditional currency?” So far it hasn’t proven to be better except in extremely limited circumstances. And a lot of the ways cryptocurrency is better will go away if governments start regulating it like other forms of finance. Having your money in cryptocurrency won’t protect you from the police and courts.
We trusted bankers to invest our money, and some short sold the housing market with that money
Okay? You could do that with cryptocurrency if traders started accepting cryptocurrency for shorts. The only reason you can’t do that today is traders won’t accept cryptocurrency for shorts, and that’s basically security through obscurity.
Sure, drugs and fraud surround Bitcoin, but drugs, fraud, and banking imperialism surround the petrodollar
I didn’t say cryptocurrency was any better or worse for fraud and abuse than regular currencies. Honestly I have no idea which one is better or worse for fraud and abuse. I’m just saying it’s not clear that the particular way that cryptocurrency is more secure than regular banking is actually beneficial.
it’s only good for illegal or morally questionable transactions.
Good thing laws are always just and everyone agrees that following every law is the most important thing a human being can aspire to do in their lifetime.
^^/s
Seriously though, I’m someone that uses credit for 90% of my purchases, but I also enjoy consuming cannabis and I’m well aware how horrible it would be if it wasn’t possible to make “illegal or morally questionable transactions.”
Bingo. Capitalism has thus far rejected the blockchain, which is generally evidence that it doesn’t solve an important problem either efficiently, safely or cheaply.
Capitalism rejects solutions to climate change as well
Only with a poor regulation. The CO2 price in the EU works pretty well (even though its slow due to other nations not participating)
Yes, in a previous post I have often critiqued those that conflate capitalism with political policy (free capitalism versus state capitalism). I should not have been so broad.
Inflation incentives endless growth for businesses. The US dollar is a global currency with security guarantees which makes it a valuable currency for trade. But while inflationary based currency was great for a short term rush in gross domestic product, it has created an economic system that is not sustainable.
We have a debt to gdp ratio greater than 100% and have for years. If the debt to gdp ratio is greater than 100%, that means our loans aren’t improving the economy well enough to pay off the loans.
The incentives of an economic system backed by Bitcoin are the economic sacrifices we will have to make in a post climate climate change world, such as changes in consumer spending to incentivize saving, which unfortunately also means a decrease in luxury goods, but sucks to say those are the economic incentives we need in a post climate change world.
Not “Spend all your money quick on useless shit before inflation makes it worthless anyways”
To be fair, there are plenty of other reasons capitalism might have rejected blockchain: market failure, interference by government, etc.
I’m not saying that to defend cryptocurrency, by the way, but rather to point out that capitalism isn’t perfect at allocating resources in every situation.
capitalism is generally terrible at allocating ressources. It will always win to externalize costs, and if the people footing the bill cannot participate in the market, like for instance future generations, the result is always a self destructive system.
Isn’t one of its goals to be free from government influence? That’s not a valid excuse.
Blockchain is just a technology. It doesn’t have “goals.”
If a government explicitly blocks it and tries to find and punish trading off or in cryptocurrencies that will cause interference.
that is talking about blockchain as a technology for cryptocurrencies.
Bitcoin had its official ETF approved and started the other week and Ethereum is soon to follow. so I would say capitalism is very much not rejecting blockchain technology. Didn’t blackrock and other giants put a ton in?
They put money in Bitcoin, but not the tech behind it. To them it’s just stocks to be manipulated in order to get a profit.
I don’t know why this is surprising. Capitalism is an economic system where the goal is profit. So, why would capital do anything other than seek profit? Nearly all technological advances have occurred through government or institutional investments, then capital flocks to it when someone finds a way to profit from it.
Thinking block chain is a solution to anything is naive. It does nothing to change the underlying system, or the incentives that drive our economy. Like any system, the interconnections between the things that make up the system, and the goal of the system must change otherwise everything will just settle back to the status quo.
For example: media streaming is becoming cable tv again. Nothing fundamentally changed about the system of delivering media, or the goal of the system which is to drive profit. Thus, we are moving quickly back to the same model of paying for media (renting it really) and watching ads to increase the revenue of the provider
Bitcoin had its official ETF approved and started the other week and Ethereum is soon to follow. so I would say capitalism is very much not rejecting blockchain technology. Didn’t blackrock and other giants put a ton in?
Right?
Also, look at its price. It dipped, and came right back.
If anything, the financial consensus around this is exactly the opposite of what was being presented.
With all the information available at your fingertips being ignorant is a choice.
“this parallel financial system can also serve a tangible social good, offering an onramp to the financial system for people who would otherwise be left out. In countries where the vast majority of the population is unbanked, national currencies are no longer a safe store of value, remittances comprise a hefty portion of GDP, and international sanctions complicate connections to the global economy, a virtual currency that doesn’t require an intermediary to approve transactions can be a vital lifeline for survival”
Bitcoin is poised to blow up Africa’s $86 billion banking system
This isn’t Reddit, you don’t have to turn every discussion into a fight. I’m genuinely interested in cryptocurrency for reasons such as the article you linked: there are areas where traditional finance genuinely has failed to meet people’s needs. Providing a medium of exchange for the unbanked is a great example of something it could possibly help with, and I think that’s a good thing if it happens. But we should also be able to talk about the problems with cryptocurrencies and the cases where it doesn’t work as well as traditional finance. And if this prediction doesn’t pan out and cryptocurrency doesn’t become a major way of banking the unbanked, we should be able to consider what could accomplish that goal. It might be a different cryptocurrency, or a new thing inspired by cryptocurrency, or something that has nothing to do with cryptocurrency. After all, cryptocurrency is not a goal in itself.
I’ve never been in Reddit so I can’t talk about it but I wouldn’t have been so harsh if you hadn’t already stated that it seems only useful for illegal and immoral activities when it’s so easy to find, if you are “genuinely interested”, that it’s not the case.
TPS metrics of the most popular blockchains
Blockchain TPS Max TPS Ethereum 13.15 57.91 Bitcoin 7.35 9.87 Algorand 6.99 221.01 Optimism 4.74 20.66 As a global payments network Visa has the capacity to execute more than 65,000 transactions per second.
13.15 is the average number of transactions per second. Max TPS (57.91) is the largest recorded TPS, not the capacity of the blockchain. Max TPS will rise as more people use layer 2. Layer 2 solutions can handle 2,000-4,000 TPS, and there are 24 commonly known ones that can do these transactions in parallel.
Yes but 65000 TPS for Bitcoin would likely have the planet glowing much brighter in the infrared… possibly even the visible, for all the heat we’d need to dump.
A rich, warm, and sterilized world!
I’m personally advocating for Ethereum which is Proof of Stake and uses a fraction of the energy Bitcoin does.
However, correct me if I’m wrong here because I’m not that much invested in bitcoin as a tech or investment, but isn’t almost half of the energy used on bitcoin generated from renewables? I could swear I saw an article about it somewhere.
Although nowadays people seem busy heating up the world telling AI to cheat on their homework, so I wonder if this is a problem with society rather than technology.
However, correct me if I’m wrong here because I’m not that much invested in bitcoin as a tech or investment, but isn’t almost half of the energy used on bitcoin generated from renewables? I could swear I saw an article about it somewhere.
It’s still wasted energy. If it wasn’t used on bitcoins, it would have been used on other things - some of which had to be powered by fossil fuels.
Without bitcoin, the renewable energy plants wouldn’t have been built.
We don’t have a shortage of electricity in the world, we just don’t have enough incentive to make it renewable.
How does that even make sense? Renewable is cheaper than burning petrol, of course there’s a shortage.
It may very well be renewable. I’m really more referring to the inefficient way in which the sums are calculated. Those data centers get warmish.
And yeah, AI is just the next thing we decided to punish our GPUs with. Crazy how we’ve used that part of the computer these last few decades…
I’m more engaged in a chat gpt session that I am staying up till 4 am watching line graphs of crypto prices, guilty as charged 😁. Not sure what comment it makes about society other than “we seem pretty lonely, everything ok?”
That’s just proof of work chains like bitcoin. Ethereum doesn’t have intense calculations and nodes instead use their staked money as liability to offer proof of transactions.
Isn’t that still an order of magnitude less than what Visa can do? Or is there some extra math involved that I don’t know about
I think it depends on the layer 2 solution, but as far as I understand, each of these layer 2 solutions independently have 2000-4000 as theoretical max, and only after bulking transactions together do they affect layer 1, so you should be able to add all layer 2 together for the total.
I guess the spatial sharding update will further increase the maximum number of transactions you can bulk by a factor or two so an individual layer 2 solution becomes comparable with visa, but I don’t think that update is coming to Ethereum in several years. Then again, Ethereum needing to perform 60,000 TPS is likely not happening this decade either.
For now at least, layer 2 is fast and cheap, although a bit difficult to use.
Where are you getting the TPS report for the Lightning Network? I thought its theoretical max TPS was in the millions.
Oh nice, that’s how high Solana’s TPS has gone in testing (in practice it hovers around 5-10k TPS). There’s also newer chains like Aptos that claim to be able to handle 150k TPS with subsecond finality. Of course, neither of these chains are very decentralised, but at least they aren’t fully permissioned and centralised. Especially on a network belonging to a partisan, anti-competitive, anti-trust law-breaking, Wikileaks funding thieving Israel supporters like Visa.
And of course we can rest assured that nobody profiting off bitcoin is morally questionable
Ah yes, Bitcoin bad because some people that use it are bad, how did I never think of that
I’m not saying that, rather I’m saying that I don’t see how either thing is clearly morally superior.
Bitcoin is open-source software, a network of nodes running Bitcoin core, the source code for which you can find here: https://github.com/bitcoin/bitcoin
Morals are a consequence of free will, which Bitcoin does not have. There are valid moralistic concerns about Bitcoin, but they are related to the impact of Bitcoin, rather than whether it is a moral system.
But I don’t want any financial tools not controlled by the government. Thats some kind of anarchist and libertarian utopia that doesnt work in practice.
General question, because I don’t give a shit about blockchain to research it.
Does it have a way to quickly and effectively handle fraud? And don’t tell me “there’s no way to commit fraud” because people can steal wallet passwords no fucking problem. With most banks they will actively track fraud, cancel those transactions, and restore your funds and possibly shut down the card automatically while still allowing the account to exist so you can access your money. Is that the case with blockchain?
It depends on whether you’re interacting with the blockchain directly, or via a custodial solution more appropriate for end consumers. Same like how you don’t get a refund if you operate a western union branch and fuck up the wire.
Yes. There are Escrow services in crypto that hold and issue chargebacks, but it is to to you if you want to use such a service.
centralized crypto exchanges also have fraud combatting teams. An example is that exchange that sponsors kitboga, the youtuber who screws around with Indian scammers. They lock scammers’ accounts from withdrawing but not depositing so they keep sending victims’ money to these accounts, and then eventually they lock the accounts and transfer the money back to the victims.
Obviously an issue with this approach is the scammers can just use decentralized wallets, but recently exchanges started blocking transactions to these too unless you provide KYC info about them, so they’re trying at least.
If you do things right, you can be relatively safe from fraud and scams, but most people won’t do things the right way.
there’s the small issue of proof of stake being subjective…
but a bank’s opinion, that’s fact
But if you’re using layer 2 solutions, then you’re not actually using the blockchain directly, right? Might as well use credit card then?
All transactions are still eventually commited to Layer 1 though, so you’re still using the Blockchain when using L2s.
No, just the final state. And you are changing into trusting a centralised node, which makes no difference compared to existing systems
…and, hear me out, that will be perfect for keeping messages untraceable by the government. Every single of those 200,000 computers will have full copies of all the messages ever transmitted, unencrypted, but they’ll never be able to tell who wrote them and who they were for.
At first I read “200.000” as a particularly precise float, and laughed at the absurdity. Then I realized he meant “two hundred thousand” and it came full-circle from comedy to tragedy. :(
Consensus algorithms lie at the foundation for a great many of the backend systems our internet depends on, massive scaling would be a near impossibility without them. – me, a 25 year backed engineer
It makes absolute sense that a massively scalable trustless system involving money would use a consensus algorithm with a large number of nodes.
massive scaling
Uh, yeah, after guzzling electricity like a small country, I’m sure bitcoin has massive scaling. Ability to process 9 transactions per seconds counts as massive scalability, right?
I assume you’re speaking Bitcoin, cryptocurrency that uses Proof-of-Work consensus.
Proof-of-Work is very secure, super decentralized, but it’s the culprit behind mining and subsequent electricity drain.
There are other consensus mechanisms, like Proof-of-Stake, to which Ethereum, Solana and many many others have migrated to or were based on to begin with.
Proof-of-Stake requires about 100x less electricity, is reasonably secure and is the default option for modern cryptocurrencies. Thereby the energy argument gets less and less relevant, while the fuss around it is only gaining speed.
And of course, the dollar, and Wall St. use no electricity whatsoever!
Also, your comment demonstrates your lack of knowledge on even the basics on this topic.
It makes absolute sense that a massively scalable trustless system involving money would use a consensus algorithm with a large number of nodes.
Whoa whoa whoa. I suppose you didn’t get the memo:
,but the rule is to blindly hate any kind of technology that any one has used in insalubrious ways, in-spite of its potential for liberation and independence.
In-spite of its potential for liberation and independence.
When it shows that potential, maybe more people will get on board. Until then there are a host of problems that make a ton of people not want to touch it including but not limited to:
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Capitalists and scammers are already exploiting it the way they do with traditional currencies, except in sometimes new creative ways because of either the lack of regulations or because the technology inherently makes it impossible to trace.
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I don’t see the involvement of predatory capitalists or financial institutions changing in a fully crypto world either, because people are always going to need financial services like loans and insurance on their savings and the financial institutions will always have the imbalance of power.
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The currencies mostly benefit people with a ton of capital to handle consensus, which further entrenches the power imbalance found in (1) and (2).
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Insane amounts of resources are needed to reach consensus in a way that is not good at all for the environment, whether that be electricity, computer hardware, or whatever other resource. Sure we already use a lot of power to make our society run. But crypto is asking for more ON TOP of that, compounding the issues. Saying the financial industry already uses a lot of power is not a good argument when I don’t think anyone is reasonably convinced that they’re going away even after crypto were to take over, and now you’re adding an insane power or pollution requirement to run the world’s currency system.
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Relying solely on crypto leaves people destitute if their wallets got hacked, unless they decide to utilize traditional banking with insurance (hint: people like stability and a lot of people will choose to do this over having their life savings wiped out).
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Chucklefucks are using the technology to commodify and break the best part of the digital world which is the ability to have bit for bit reproducible copies of information.
I’m serious. Fix all of that and you absolutely would get people on board. Not even kidding. Crypto would be taken seriously. But I have yet to hear compelling solutions by cryptobros.
Fix all of that and you surely would get people on board but I have yet to hear compelling solutions by cryptobros.
I actually completely agree with all of your points. I also hold out hope for the decentralization of power, which is something I still think block chain and crypto have a role in. Its the same hope I have for the fediverse, that we can all ‘own’ or be a part of a broader solution through self hosting, development, and funding the projects we care about or think will make a difference.
I thought crypto had that potential, but because its looked at as ‘money’, the worst of the worst kinds of people steered its coarse. I still think the principals have this potential, and in more mature versions, I expect them to be realized. And arguably, they are being realized. In-spite of all of the shitcoins and scamcoins, bitcoin, the OG, is still extremely strong. I have no reason to believe that a bitcoin purchase made today wouldn’t still be considered as good of an investment as SPY was 8 years ago. I also think the generally dismissive tone of the case against digital currencies as scam is a little hilarious, considering that literately 90%+ of stocks admitted to the NYSE end up with a similar if not worse fate than the majority of (major) coins from the big boom we saw through 2020. A few stocks stay valuable throughout time, but that’s rare. Most end up valueless and eventually are delisted.
I think criticisms of digital currencies, especially decentralized ones, need to be put into the broader context of all financial vehicles that exist and are available. Likewise, crypto has potential outside of just digital currencies, and the insistence that its bad for the environment, well that’s largely solved outside of bitcoin, and likely will never be solved for bitcoin. I still think its a neat technology with some interesting use cases. I’ve enjoyed watching it evolve and grow so far and I’m excited to by the belief that there is some potential for interesting things to come from that space in the future, especially if they support a more decentralized, anonymous, and democratic internet in the future.
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Oh good Lord, I was partially inclined to agree but using generative Ai to make this point tells me everything I need to know.
If that’s your make or break, go ahead and break. No real loss if that’s your breaking point.
Couldn’t even be assed to fix the text of the main focus of the picture?
I’m working bruh, how much time do you expect me to put into a throw away meme?
More that the barest minimum, at least.
Fine, Dad.
There I fixed it.
Or, you could just pick one computer, have it do the work and punish it by taking its money if it screws up (ETH).
But yeah you’re not wrong about minable coins.
Crypto =/= blockchain.
If you can’t see the utility of blockchain with regards to things like actual, verifiable digital ownership, then I don’t know what to tell you.
I want to see what you mean in practical terms, because the only other example that I know besides questionable crypto currencies is NFTs and that was an epic lesson on what not to do. 😅
An NFT is a deed. Do you see any uses for a deed that is not in control of a central authority?
Not really, no. Who’s going to honor the deed? There’s your central authority that can control it.
No, NFTs do have good uses, but things like image NFTs are just a misappropriation, like SPAM is to email.
One use case, is clear, independently verifiable ownership of non-tangible things, like Intellectual Property rights. Movie rights for a book adaptation for instance moving between companies in IP sales and mergers/acquisitions.
One use case, is clear, independently verifiable ownership of non-tangible things, like Intellectual Property rights.
Why is your system better than the existing one?
There is, for example, the first-owner problem in a public blockchain. What happens if I make an NFT saying I own you property? Without an external system, how can you prove your NFT is real and mine isn’t? And if there’s an external system, why not use that instead?
I thought of that problem the moment when they started explaining their use case. I had no idea there is a name for it, kinda cool. If the blockchain people have a real solution for it, it would be a pretty big deal
It’s a term from copyright. The First Owner of a work is usually the person who makes a work, and they can then do all sorts of things with that.
IP rights is not a problem that needs solving. In fact, the existing legal system has ways of punishing copyright violations whereas the Blockchain does not.
Supply chain validation is also an example of the block chain “in action”. But the people that are entering the data on the Blockchain are the same people that were typing it in an email yesterday.
I used to be a fan of the technology as well but so far it hasn’t show itself to be useful. A solution in search of a problem.
And it’s ALWAYS the same problem. You can have all the lists you want. A central authority has to recognize and enforce that list. At which point, the structure of your list is completely irrelevant. It could be ANY list. What matters is that it’s chosen to be enforced. And currently, most power structures are happy with plain old databases. Or pen and paper.
A plain old database also has ways of dealing with theft.
If someone steals your crypto keys and sends your assets to themselves, they have no legal ownership over those assets but they’re listed as the owner in the blockchain, so blockchain isn’t even any good at being an accurate, verifiable record of ownership.
Yes, you can’t make changes to the blockchain, but that also means you can never fix anything. So you actually can’t rely on the blockchain to be accurate.
No, NFTs do have good uses
I hear that now since 12 Years. Its not going to happen.
Without really having an opinion on the matter - I think there’s a difference in having a use and being adopted.
Something can be absolutely awesome in theory but useless if no one is using it.
Yeah I think a lot of people don’t understand that “good for x problem”, “better than existing solution”, and “switching to this solution is better than staying with the existing solution” are three vastly different things
Blockchain fails because switching to it is consistently worse than sticking with current solutions, and often it fails at being better than current solutions in the abstract
That just sounds like you’re describing me.
The perfect use case is tickets to live events. One entity creates one NFT for each seat or spot available and can initially sell them. The owner of that NFT (ticket) can then do whatever they want with it without the need for a third party (Ticketmaster) to scalp the shit out of any subsequent transactions.
Proof of ownership of a single ticket at the time of the event is the end goal, which is what NFTs do.
Why this hasn’t been done is pretty baffling to me.
What’s better, is if artists want to provide a subset of tickets that are not resellable they can. Those tickets will only be accepted if a single transaction has taken place.
The owner of that NFT (ticket) can then do whatever they want with it without the need for a third party (Ticketmaster) to scalp the shit out of any subsequent transactions.
How is that supposed to prevent scalping, exactly?
Proof of ownership of a single ticket at the time of the event is the end goal, which is what NFTs do.
And that’s better than physical tickets, because…?
What’s better, is if artists want to provide a subset of tickets that are not resellable they can.
That’s also already a solved problem: write a name on a ticket and validate that name with an ID.
Just responding to the “scalping” quote. It absolutely wouldn’t stop scalping, what I HOPE op was trying to say was that it could be used to prevent Ticketmaster, or any entity like it, from charging fees on every exchange of said ticket.
Would it? Or would Ticketmaster just buy all the NFTs and then have even less regulation on their scalping?
And that’s better than physical tickets, because…?
paper tickets are relatively easy to counterfeit, especially for the purposes of selling the counterfeits as scalped/unwanted tickets.
Again: that’s a solved problem with holograms.
The sounds like scalpers paradise. They can buy multiple tickets and sell it without thinking about any authorization (id card or something) when using that tickets
Why this hasn’t been done is pretty baffling to me.
Because the blockchain needs an incentive. Who is going to be taking part in the blockchain if there is nothing in it for them? That’s why these tokens are often tied to crypto currencies, as mining is the incentive.
Yeah why would ticketmaster, who makes a killing having their ticket monopoly and control, develop a system where they lose control?
That is an absolutely TERRIBLE use case because it is by definition centralized. The venue already has ample control over who tf gets in and there is little problem with counterfeit tickets.
Duranium-on-the-Mohs-scale hard pass. Tickets work fine.
What’s baffling to me is the ramping up of the 21st century penchant for mindless wheel-re-inventing.
That’s not a perfect use case for it. That’s a central authority (venue) selling tickets to anyone who wants to buy them. But instead of using a local database and approving transfers from person to person and losing the ability to reverse transactions due to fraud, it’s hosted in the wild west of crypto.
There’s nothing stopping a venue from offering your perfect use case in a centralized system, but they outsource it to Ticketmaster (namely because Ticketmaster owns like 80% of music venues or something) so they don’t have to deal with it.
Your scenario outsources it to the block chain, who will charge gas for the transactions instead of ticketmaster charging fees.
I don’t know the value in a decentralized IP rights system. If the key holder gets phished, you can lose your rights to a TV series you’ve been working on. (Like Seth Greene)
He wouldn’t have lost it and had to pay back the ransom in a traditional contract. Having a contract centralized and enforced by the legal system has many perks and I can’t ever see how a decentralized rights platform can enforce itself.
"Intellectual Property[sic]" is dishonest loaded language, but yes, I agree with you that blockchain could be a good way for a copyright holder to prove their monopoly. 'Course, that’s also what registering your copyright with the Library of Congress is for, so…
There are other uses. Like making a system that is interconnected and resistant to hacking. For example an interconnected traffic light system that can prioritize transit/emergency vehicles could be managed by a block chain to ensure the system stays in sync with itself for traffic flow/prioirty while being resistant to hacking or malicious activity.
How does adding more computers, more points of failure, make infrastructure less prone to exploitation?
Because it’s a trustless system. In order to override the system you have to take over 50% of the nodes, and in large enough systems it’s infeasible to get that much compute power. This means that no one person or organization can actually control the destiny of the system, only the consensus can.
I can’t believe that here, in the fediverse of all places, we need to have a discussion about the benefits of having a system that corporations can’t control.
Ok explain to me the advantages of a decentralized traffic light system that controls public traffic on public streets?
What advantages does a blockchain traffic light system have over a centralized server controlled by those who are responsible for maintaining the physical hardware?
Nah that one makes perfect sense to be centralized. I’m saying in general you’d want a system to be decentralized if you want it trustless.
Who controls the streetlight blockchain in your idea? You think the government is going to responsibly manage a system that is large enough to be impractical to alter? My local government is barely responsibly enough to manage basic utility maintenance, we’ve had 3 water main bursts in a month and it hasn’t even been below freezing that whole time.
I can’t believe a human being living in the world doesn’t see that any implementation of a secure blockchain requires massive funding for infrastructure. That money comes from 1 of 2 places, illegal enterprises that maintain control for security and manipulation, and legal corporations that will maintain control for financial security and manipulation. Modern governments don’t run projects like this anymore, they contract them out to corporations.
Keep in mind that the only practical use of blockchain that anyone has found so far, has been as a currency that requires no ID. The most famous use of these currencies was by John Mccaffee, who used crypto currencies to help him evade authorities for nearly a decade. So I don’t have much faith in a technology that has only shown a benefit to criminals with so much money that cash becomes impractical. Nor do I have to remind you that wealthy private individuals have been able to manipulate crypto markets with hilarious ease, like how Musk pumped and dumped Doge Coin years ago with a single tweet and most likely made millions in private, untraceable money.
Just because something sounds cool on paper, and makes it seem like it skirts governments and corporations, doesn’t mean it works in practice. Large entities inherently have more resources, and are primed to steal new technologies for their own use, especially when implementing that technology requires huge funding for infrastructure.
Yeah I realize now I responded to a thread about traffic lights instead of systems in general. Obviously centralized systems are far superior for that.
It’s almost like different types of systems have different requirements, and a communication platform benefits from decentralization, where traffic lights and vehicle routing does not.
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This is a classic solution in search of a problem. The problem with stop lights isn’t that corporations control them, the problem with stop lights is that the general population thinks that cars are the only way to get around and demand that city officials optimize street and roads for cars. Adding a bunch of crazy verification steps will not solve this problem.
This is another social problem that technology just can’t solve.
Maybe it would be a good thing for the digital world to be free from the concept of ownership.
”Digital property is theft, comrade”
Reminds me of a device I heard about that just copies a music file and then deletes the copy and counts how many times that file has been copied as a commentary on the dialogue surrounding piracy
How about first we see a version that isn’t a scam? We’ve seen plenty of scam versions so far.
Imagine if you will… the dollar (cash) was invented today, up until now all there was was long-established crypto currency.
Suddenly there’s all sorts of scams where crooks trick people out of their dollars. Others are getting straight robbed and have no recourse to get their cash back. Cops often don’t believe you as you have little evidence of the $1000 you just had. Yet others are getting scammed by “banks” that disappear soon after accepting deposits as there is no state regulation.
What you’re seeing is not a problem inherent in crypto-currency or blockchains, it’s a new tool. Many new tools are used most effectively by “the bad guys” first. Even look at Mp3s, the first 5 years of their existence their purpose was basically to rob record companies. Are mp3s a scam?
Don’t let banks and authorities convince you that one of the most effective weapons against them is a scam against you. You don’t think the banks are telling you the truth… this time… right?
I’m looking at the current evidence, not “what banks are telling me”.
Of course! You have access to actual evidence and not articles directly or indirectly funded by those who would be harmed by moving away from the current system. And of course you’ve considered it without bias or influence from that group. You are not being propagandized to, no way.
IMO, blockchain technology is good for one use case: illegal transactions.
I think all else can be achieved more efficiently by using a trusted third party write-only database, such as the ones available on AWS, and you’d also have the benefit of being able to go to court to seek relief. Some blockchain markets are basically reinventing banking systems and preexisting financial law - systems that have been built over centuries and have quite a bit of knowledge baked in.
I do like the shift to proof of stake from proof of work, but this tech is silly to me.
Proof of stake, while better for the environment compared to electricity-guzzling proof of work, actually shift the power of consensus to capital owners. In proof of work, any bloke with some computing power can participate in the swarm even if they don’t own any crypto. In proof of stake, only those who own some crypto can participate in the swarm, and those who own more have more say.
You can say that proof of works also requires capital to buy computing power, but with the shift to proof of stake, the bar to participate has been raised. If can’t just use a spare computer to join now, you actually need some capital to buy some stake before you can participate. It’s a big boy club now, a tool to help the rich get richer.
To add: mining profits are minimized with difficulty adjustment, but there’s no such mechanism with staking - profits are maximized instead.
IMO, blockchain technology is good for one use case: illegal transactions.
YES!!!
The only thing you’re not getting quite right is what it means to be “illegal” and whether the groups making this decision have anyone’s interest in mind except their own.
When doing right is or becomes illegal because our country is run by a fascist, that “illegal” money will save lives.
I know of one use case that seems viable, there is a digital housing market service in my country (called Dias). It uses blockchain to verify transactions related to selling and buying houses. That includes proof of sales, ownership, bank transaction status etc. The blockchain is operated by all the major banks. Their incentive is that it increases the security of the transactions thanks to the immutable digital trail, and also the fact that no single entity owns the “database” so no entity can alter it, or skim service fees etc from the others.
But if you have any conflict with it, you have to get a lawyer involved right? It doesn’t seem like it provides value to a real estate transaction, just seems like a use case for block chain
IMO, blockchain technology is good for one use case: illegal transactions.
If the friction of translating your fiat money into cryptocurrencies and back is low enough it can be a very good method for collecting digital donations. Potentially no fees to send/receive money, no real national restrictions to speak of and then its stored as a value that the recipient can use however they want, plus donors can trace where the money goes if the person they donated to then turns around and donates a portion to another person receiving donations on the blockchain.
Basically the exact same benefits as the use case of illegal transactions, but at least for good rather than usually-not-good
In which cases is this actually useful, as opposed to having a centralized database? Blockchain doesn’t provide the enforcement of ownership, which is the real problem.
A blockchain is only as secure as the amount of work (= processing power) that goes into it. Anyone with 51% of the processing power invested in a blockchain can attack it and essentially steal from other people. For cryptocurrencies it’s a problem that solves itself, because every person that possesses some of the cryptocurrency is incentivized to mine to keep it secure (and to earn some at the same time). The more your cryptocurrency is valuable, the more people will want to mine it and the more secure it will be.
For anything other than cryptocurrencies, you can’t incentivize a huge number of people to commit computing power to secure your blockchain. So you have to protect it some other way, for example only allowing you and some trusted people to write on it. But then it doesn’t really need to be a blockchain anymore, just a write-only database (which will perform better and occupy less space).
If it requires no work to generate a block at the end of your blockchain, any attacker can generate malicious ones.
actual, verifiable digital ownership… using a distributed database technology that is designed to require a massive amount of computing resources to update.
I think where some of us who work in spaces using databases to verify something in critical business processes get stuck in accepting that blockchain has value is that our jobs have always been to verify “ownership” as quickly and efficiently as possible. We typically do this by defining a canonical source of truth and our success is judged on how many milliseconds transactions take and the datacener or cloud costs.
Saying that everything about blockchain is “dumb” isn’t a very nuanced analysis… but it’s a understandable reaction to hearing the hype that blockchain is going to change everything for years.
I’ve never seen anyone argue that the massively distributed nature or the public read access of blockchain technologies aren’t interesting. It’s the tradeoff that has to be made in speed and costs that make it hard for many of us to see any value in the approach for most applications.
Digital ownership on one (1) blockchain. Not really that great when you put it like that. What makes one Blockchain more authoritative than another? Even in a closed system, if you think the admins of these chains don’t keep a kill switch in their back pocket specifically for their advantage in ownership conflicts then you should probably read about Ethereum Classic. Even if they don’t want to hard fork, if a chain is controlled entirely by a company, then they can edit it however they want regardless since it’s not really decentralized. The idea that Blockchains will empower the customer with digital ownership is silly to me.
Who do you think controls ETC? IOHK? It’s an open-source project.
It had some 51% attacks a few years ago, is that what you are referring to?
I’m honestly just curious what you mean
No, I’m referring to how ETC came about as the result of a huge scam that caused the whole Ethereum project to be forked. The original Ethereum was supposed to be immutable, but this conflict clearly showed that wasn’t true, and there were still people pulling the strings who were too big to fail.
Not anything new to someone who’s very familiar with the project, but emblematic of the promise of crypto vs the actual product.
Then I guess you misunderstand that the hard fork resulting from the DAO hack was the result of consensus of the network participants, not a unilateral action taken by the Ethereum foundation. Indeed, the protocol facilitated that’s the only way it could happen.
The historic source code is still hosted, if you think ETH devs have the ability to ‘edit whatever they want’ then you should be able to point to the lines of code where that ability is afforded to them. Or someone should, 8 years should have been enough time to have a flick through.
Your anti-ETH comment came across as an anti-ETC comment to me, that’s why I responded. I stand with you in disagreement with the 2016 hard fork. Mostly because many people would lose money anyway, and did. ETH corrected 50+%.
ETC is literally the original chain, sans Ethereum foundation’s branding (which is why your reference to it confused me). Founding members left and continued to support ETC, and went on to found other foundations with a basis in academic rigor, which formed the fundamental basis of the ideological disagreement between participants.
You said this showed ETH/ETC devs have a ‘kill switch in their back pocket’, but the part of Ethereum that was ‘killed’ is alive and much larger than it was in 2016.
My point wasn’t for or against any particular chain. It was just pointing out that crypto isn’t really immutable when applied to real use cases, and is only as decentralized and democratic as power brokers in the space want it to be.
I’m pointing out that the DAO hack transactions are not muted on ETC, they still exist as transactions in a validated block on that chain. Whether its state of mutability exists in binary or on a spectrum, ETC is shown to be immutable using your criteria, further showing that it’s not as simple as “crypto isn’t really immutable”. Different chains, even directly originating from the same project, have different characteristics with respect to mutability. It’s not to say that ETH is worse and/or better than ETC, or that either of them are good, it’s just what’s been observed as a matter of record, contrary to your depiction
My point is that in a mass-adoption scenario where blockchains are controlled by large entities, they will absolutely use these characteristics to their advantage, and because of how crypto is structured it will be much more oppressive and favored towards existing powers than more traditional methods that allow for greater flexibility and a more diverse set of use cases. That’s why some of the biggest holders of crypto are the same corporations that caused the '08 subprime loan crash.
Is a chain is controlled by a single entity then it’s not a blockchain, it’s a linked list with extra steps.
The whole point of a blockchain is that it’s independently verifiable/validated by all its users. Anything else is a literal scam.
Well, a blockchain is a linked list with extra steps. Only having 1 entity just means it is centralized, not decentralized.
You’ve almost put all the pieces together. A decentralised linked list is … ? oh wait
A decentrailized linked list.
You were supposed to have the eureka moment where you realise that’s not a thing, oh well.
A Blockchain is already just a linked list with extra steps.
the problem that bitcoin “solves” is mathematically unsolvable. The only reason it kind of works is because participants are human, and therefore are able to assign arbitrary value to the currency, and therefore can act greedily to try to maximize (and protect) their coins. Participants are only incentivized to participate in mining because the thing they’re rewarded with is a “currency” (something they value, as humans).
For anything but a currency, what is the incentive of miners using their resources to handle your transactions?
It’s no surprise you don’t know what to tell us. It’s hard to get a mark to buy into a scam once they’ve realized what is was.
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It doesn’t require that much computing power, that’s just a variable that gets set.
If the difficulty were set lower, one average computer could easily handle it.
Lot of comments don’t seem to understand that these words are not interchangeable
Do we have a buttcoin on Lemmy? We need a buttcoin
Then some massive org like the NSA creates/captures 51% of the nodes and takes everyone’s money overnight.
In a trustless environment…
You’re handing over your valuables at gunpoint, nerd.
I think you meant to reply to a comment and instead replied to the post.
No, I’m just mocking Blockchain idiots in general.
