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Are there good uses for the blockchain? (lemmy.world)

submitted 2 days ago by [email protected] to c/[email protected]

71 comments fedilink hide all child comments

Please don't auto downvote before reading.

A little bit ago some asked a question about why the hate of the blockchain, and that got me thinking if there even was a legitimate use case where the blockchain would be beneficial, but I couldn't think of one outside maybe some sort of decentralized bank, but before I knew I was thinking it would instantly turn into some crypto scheme and strapped it, because crypto currencies are a scam on every level -- and no they aren't private or secret as some think either.

So I wanted to ask the community. Instead of using the blockchain for crypto, is there a better use where the blockchain could benefit society?

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[–] [email protected] 3 points 2 days ago (2 children)

Nice explanation, thanks. I would read more.

Do you also have brief, pointed argument against crypto/blockchain that you use in casual conversation? The subject comes up fairly frequently and I know it’s all bullshit but I usually struggle to explain why. What key points would you make to people who might be starting to get seduced by the hype or who are already sucked in?

[–] [email protected] 2 points 1 day ago

What the other person said is good, but two of the simplest things to say are “this tech already existed and was in use for decades, and doesn’t require the massive energy waste that blockchain does” or “blockchain is designed around distrust in everyone. If you distrust everyone then why are you doing business with them?”

[–] [email protected] 5 points 2 days ago (1 children)

Not OP, but in my circles the simplest, strongest point I've found is that no cryptocurrency has a built-in mechanism for handling mistakes. People are using these systems, and people make mistakes. Without built in accommodations, you're either

Creating real risk for anyone using the system, because each mistake is irrecoverable financial loss, and that's pretty much the definition of financial risk, or
Encouraging users to subvert the system in its core functionality in order to accommodate mistakes, which undermines the entire system and again creates risk because you don't really know how anything is going to work with these ad hoc side systems

Either way, crypto is just more costly to use than traditional systems when you properly factor those risks. So the only people left using it are those who expect greater rewards to offset all that additional risk, which are just speculators and grifters.

[–] [email protected] 1 points 1 day ago

I completely agree with your post except for the last part.

Either way, crypto is just more costly to use than traditional systems when you properly factor those risks.

This all depends on the risks involved in the traditional systems you're comparing the cryptocurrency to. Traditional systems are exposed to some kind of risk that cryptos aren't. For example, with cryptocurrency your account can't be seized or frozen by authorities, be them governments or banks. With some cryptocurrencies you are also at much lower risk of hyperinflation (or inflation in general).

In many cases the risk involved in using cryptocurrencies will outweigh the risk posed by traditional finance, but that's not true in all cases. In some parts of the world, the risks involved in traditional finance are significant...