Articles like this are a good thing as, per the Gartner Hype Cycle, they are an indicator we're on our way to the Trough of Disillusionment, whence we might eventually come up with some good, solid, non-miraculous uses for block chain and, perhaps, cryptocurrencies.
Originally shared by +David Newman:
Bruce Schneier argues on Wired that blockchain is a useless fad: https://www.wired.com/story/theres-no-good-reason-to-trust-blockchain-technology/ . His basic argument is that blockchain does not really eliminate the need for trust in the way its advocates claim.
The recent case in which a blockchain exchange executive died with the only password illustrates this in a way that Schneier didn’t call out explicitly. Customers of this exchange (and presumably every other one) trust that the administrators will not do anything so dumb that it locks the customers out of their bitcoin forever. This exchange seems to have done exactly that by allowing only a single person to know the relevant passwords. https://www.theguardian.com/technology/2019/feb/04/quadrigacx-canada-cryptocurrency-exchange-locked-gerald-cotten
Schneier also claims (though without argument) that bitcoin has the most costly consensus algorithm in the world. Perhaps it is the most expensive such algorithm in common use. I bet someone who tried could come up with a more costly one. But I think it illustrates Schneier’s point in another way. Users of a particular blockchain currency trust that the distributed mining required will never be so costly that no one is willing to do it.
I find myself convinced that blockchain is a fad or perhaps a technology in search of a problem to solve.
There’s No Good Reason to Trust Blockchain Technology | WIRED
Opinion: Cryptocurrencies are useless. Blockchain solutions are frequently much worse than the systems they replace. Here’s why.
"Blockchain Doesn't Solve Problem It Wasn't Designed To Solve"
That was a really good article. Thanks!
The blockchain was designed to solve the double spending problem in a decentralized manner. Whether or not it's a generally useful tool, or whether or not cryptocurrencies are useful is really beside the point.
I completely agree that jumping on the blockchain bandwagon is stupid, but let's not throw the baby out with the bathwater.
As Schneier points out, we're still trusting, but we're just trusting things we don't know we're trusting. The guy who managed to overwhelm the Etherium blockchain, roll it back, and engage in double spending, was showing that the Etherium people's trust in their blockchain was misplaced.
Blockchain can prevent double spending, but just because something uses blockchain that doesn't mean double spending is magically prevented. Yes, if you use a cryptocurrency you're trusting the software that implements it.
Cryptocurrancies are a pyramid scam. And there's nothing inherently moral, fair, honest or logical about mining for new coins. It's a simple matter of he who controls the most slaves (not necessarily owns them) picks the most cotton. Another apparent purpose of Crytocurrancies is to increase the demand for fossil fuels, jacking up price. When you cut down to the middle of the deck, the servers that the miners buy, hack and crack require cold temperatures, and that requires power better spent on the production of food, cloth, housing, and medical. I have heard it said in the news that globally, mining exceeds the amount of power produced by green means. So not only is the general public seeing slowdowns on their personal devices because of the malwear, but they are also paying to buy the electricity for the minors as indivually, but also as taxpayers. Increased power usease signifanctly contribes to global warming.