[Cryptography] I am not against good cryptocurrencies. I just don't think you can build one with a block chain protocol.

[Ray Dillinger]

Several people reading my recent discursions on Bitcoin have concluded
that I am anti-cryptocurrency.  I'm not.

I am not saying "cryptocurrency bad", I'm saying "block chain ledgers
don't work, we will need a different idea to make cryptocurrency good."

I am not.  I want there to be a good cryptocurrency, I want it to be
easy to use, I want it to be secure, I want it to scale, and I want it
to be at least reasonably private for those who use it without trying
to cheat.

The search for a good cryptocurrency protocol is not satisfied by the
design elements of bitcoin.  Nor, I am now convinced, will they be met
by any cryptocurrency built on the Nakamoto Protocol.  The shared block
chain as ledger of all transactions simply does not scale, either in
network bandwidth nor transaction bandwidth.

The failure to scale causes access to the benefits of the protocol to
be denied to pretty much everyone.  Instead they must access the
ridiculously limited transaction bandwidth through gatekeepers. These
gatekeepers, at best, present exactly the same set of risks and privacy
concerns that the users encounter in credit card or checking account
processing. So most users achieve no benefit in transaction processing,
and therefore the protocol is a failure.