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<b style="font-style: inherit; font-variant-ligatures: inherit; font-variant-caps: inherit; font-size: 11pt; font-family: Calibri, sans-serif;">Gönderen:</b><span style="color: rgb(0, 0, 0); font-size: 11pt; font-family: Calibri, sans-serif;"> Ray Dillinger
<bear@sonic.net> adına cryptography <cryptography-bounces+bizbucaliyiz=hotmail.com@metzdowd.com></span><br>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" color="#000000" style="font-size:11pt"><b>Gönderildi:</b> 29 Aralık 2020 Salı 04:07<br>
<b>Kime:</b> cryptography <cryptography@metzdowd.com><br>
<b>Konu:</b> [Cryptography] Bitcoin is a disaster.</font>
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The pseudonymity of coins being owned by the bearer of some<br>
cryptographic key is a failure; People have been eavesdropping and<br>
aggressively analyzing the block chain from day 1. And the block chain<br>
will always be there, it will always be public, and it will always be<br>
subject to further analysis. And we are learning that analysis of that<br>
record is sufficient to destroy any pretense of anonymity or<br>
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<div class="PlainText">I don't know if Satoshi thought about this aspect of the Bitcoin when it was published. I started to think that he just came up with a product that he hoped would be used worldwide, but he couldn't predict all the outcomes and problems
we are facing right now. The anonymity on Bitcoin blockchain is non-existent right now if one has enough money and time to analyze an address(es). </div>
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The scarcity of block chain space has led people to re-invent every<br>
last feature of the banks they thought they were going to be escaping.<br>
Including debt brokering (lightning network) and fractional-reserve<br>
banking, starting with the case of Mt.Gox and continuing to ventures<br>
today by "responsible" businesspeople who just don't get, or don't<br>
care, or both, that the entire reason the system existed, as far as the<br>
early adopters were concerned, was to get away from exactly that. They<br>
have made Bitcoin into a debt-based system like any other; as long as<br>
the "exchange" holds your keys for you, there is no obligation for them<br>
to maintain assets equal to the deposits. You can't prove that they<br>
are, or aren't, maintaining sufficient assets until after those assets<br>
<div>are spent and the evidence appears in the block chain.</div>
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<div class="PlainText">The problems mentioned here are the results of people's understanding of money, their user experience and their expectations. I am now trying to run an airdrop program for an ERC-20 token (call it a shit token if you like), even though
we are recommending everyone to create their own wallet and tell them "own your private keys!", many are too lazy to do so and would like to use an exchange wallet instead. Some even complains that they don't trust wallets like MyEtherWallet for private key
generation and prefer to trust the exchange company. </div>
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<div class="PlainText">I believe the reason here is legally registered entities have to obey the law and if not, they might face penalties and the owners might even go to jail. And if something goes wrong with their wallet or funds, they will find someone behind,
someone accountable from their accounts'/funds' security. On the other hand, if you create your own wallet and your private keys gets lost or stolen, you lose all your funds and there is no insurance or a way to claim those coins/tokens back. </div>
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<div class="PlainText">That's why currently we are criticizing the cryptocurrencies. Yes, they bring the decentralization and "own your assets" into finance ecosystem but they are getting rid of the insurance and recovery. I believe no one would want to hold
an asset that might be lost or stolen and it is irrecoverable. While the idea of decentralization is good, it is against the user experience, and it doesn't match with the user needs. Hence, we have the central solutions for Bitcoin.</div>
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Mining is f***ng broken, and ASICs make it actively work against a<br>
significant number of its design goals.<br>
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<div class="PlainText">Again this is the matter of "how can I make a decentralized network for financial transactions". Trusting to cryptography might have seemed good at the time but now it's not decentralized and I doubt any network out there that requires
an investment to be part of will be centralized to some aspect. Simply because more money you have the more miners you can afford, rich would own the network. We can't trust on staking too because again, rich could run multiple nodes to control the network.
Authorized node approach is directly centralized too, so what we are left with? I don't know. </div>
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<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">So, Bitcoin was a good effort, it deployed some new ideas and</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">technology, and showed that at some scale the "block chain" idea</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">worked, but ultimately, although a successful proof of concept, failed</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">to deliver. It doesn't scale, except by becoming the very thing it was</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">supposed to replace.</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">The more scalable the network becomes, the more centralized it becomes,</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">until ultimately a "scalable" cryptocurrency would be doing things</span><br style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255)">
<span style="color:rgb(0, 0, 0);background-color:rgb(255, 255, 255);display:inline !important">exactly the same way as a credit card processor.</span><br>
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<div class="PlainText">Perhaps in the future someone will develop a blockchain where one human being can only contribute once and with limited power, say it finger print scanning, or retina scanning, or even DNA submitting (or whatever it could be, I'm just
making up stuff). Even in that case, I am 100% sure that a rich person could distribute some amount of money to get the authentication keys/methods/data from those individuals and make the network somehow centralized. If people keep acting like a sheep, there'll
be a shepherd guiding them and milking them all the time. </div>
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<div class="PlainText">So, the question is, could we develop a truly decentralized network? Perhaps.</div>
<div class="PlainText">But should we do it? I think not. </div>
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<div class="PlainText">As humans are prone to error, at least there has to be some level of insurance/support has to be involved. Especially to deal with refunds and all. At the end, this is what made human race "the smartest animal" because unlike most animals,
we collaborate, we help each other, and we advance together. Those are my thoughts tho, what is best for humans and the society is yet to be determined, and be taught at schools in history classes
<span id="🙂">🙂 <br>
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- Osman</span></div>
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