billyjoeallen
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billyjoeallen
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December 22, 2015, 01:21:11 AM

@BJA Tim Swanson wrote a paper about how adding exogenous value onto a network that cannot detect and dynamically protect the exogenous value is a bad idea. It was hard to disagree.

Quote
The metacoins and colored coin projects listed above unquestionably increase the social value
of the chain, yet they do not proportionally incentivize security beyond the existing block
reward (seigniorage) subsidy.  This could lead to an economic incentive to attack the chain, a
type of fat tail risk that could dramatically impact any layer residing on top of the Bitcoin
network.




The network is ridiculously oversecure for it's current market cap.  How many goddamn exaflops or whatever?

You might be able to snow the noobs with technobabble but I've been around too long. I'm not buying.