Great article from the Crypto Monday Club’s Richard Brown. I really only disagree with one point:
“If your cryptocurrency idea requires users to trust only you, you’re missing the point.”
Let’s flip that on its head for a second. If you’re a corporate (e.g. bulge bracket bank) your users trust you already – because you’re a bank. People know where you live and the reputational consequences of breaching their expectations in the way that a blockchain is designed to remedy would be commercially catastrophic. Trust isn’t a pain point here from the consumer’s perspective.
So I ask this: is that statement still true if your trustless platform isn’t designed to protect your users from you… but to protect you from them?
Decentralization and centralization are two ends of a continuum. Look for opportunities to disaggregate “bundles of trust” to identify good opportunities in the cryptocurrency space
There are so manypotential usesfor cryptocurrency technology. But how do you know if any of them are good ideas? Blockchain-mediated financial exchange? I have a good feeling about that one. A bank-sponsored local currency system for small businesses? My sense is that it’s probably a terrible idea. But short of going out and building it, how would you know?
So are there any test you can apply beforehand to figure out if a blockchain is a good technical solution for a given problem? And can you turn a bad idea into a good idea?
It’s a topic that comes up regularly when I present to audiences on Bitcoin and cryptocurrencies. Here are some slides I often use in these discussions. Slide 15 is where…
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