Blockchain – don’t ask how, ask why

David Kernohan, Wonkhe, Dec 27, 2017
Commentary by Stephen Downes

Why Blockchain? That's the key question. "In this case," writes David Kernohan, "the problem is trust." For example, what do you do if you don't trust your bank? "Cryptographic encryption (hiding information using the power of really difficult maths) lends anonymity and security, but the openly visible nature of transactions lends reliability." Except - it doesn't. In the cases where the currency fluctuates wildly, or where millions are stolen from user accounts, or where falso contracts are executed, you find quickly that there is no more reason to trust the digital currency ecosystem than there is to trust banks or governments. And maybe a lot less reason. "You don’t need Wonkhe to tell you that investing in a hugely volatile financial product with no reliable – or even regulated – way to withdraw your money is probably a bad idea." Yeah.

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