DaRude
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In order to dump coins one must have coins


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May 26, 2018, 08:25:08 AM


Unfortunately, there is nothing to prevent someone from building a layer on top of a blockchain and issuing tokens that are supposed to be backed by deposits and then running a fractional reserve. (Many accuse Tether of doing just that.) Furthermore, blockchains have difficulty scaling. That is why BTC has resorted to the lightning network to attempt to address the scaling problem.

So BTC is a solution, but it's really not a solution because someone can come up with a different solution on top of BTC which wouldn't really be a solution at all, thus making underlying BTC not a solution. Think i got it. And then BTC is having problem scaling so that's why they introduced a scaling solution called LN. Did i get it right?

If the solution you want is to totally prevent people from running fractional reserves, then no, the blockchain is not the solution. Perhaps if you could cram all of the functionality onto the blockchain itself it may be a solution. However, when you try to cram all of the functionality onto the blockchain itself, you run into a scaling issue. You can get a blockchain to scale, but this always comes at the cost of the network being more centralized.

Oh ok i think you cleared it up now, but just to make sure, so it's impossible to cram every possible functionality in any system, and it's also impossible to prevent a derivatives market based on any underlying asset. And since BTC exists in our faulty universe BTC is burdened with the restrictions that apply to every other system. Thus we draw a conclusion that BTC is a failed experiment and will die? I believe the scientific name for this argument is 'R0ach logic'