A Blockchain A-Z of useful articles, explanations and analyses of the key issues, aspects and concerns of blockchain technology and distributed/shared ledgers; and their current and future potential in banking & finance, law, government and commerce.
Friday, 6 November 2015
Permissioned Ledgers And The Case For Blockchains Without Bitcoin - Tim Swanson
Tim Swanson recorded this in June 2015 - an important addition to the Bitcoin blockchain debate:
One topic that is guaranteed to cause heated discussion among cryptocurrency enthusiasts is the idea that blockchains can be controlled by known validators and function without an underlying cryptocurrency. Some think this is a non-sensical idea fabricated by those spineless enough to want to appease regulators and but clueless enough to miss the whole point of cryptocurrencies. But others believe that Bitcoin is unsuited for a lof of ‘Bitcoin 2.0’ applications and that permissioned ledgers have wide-reaching potential to increase efficiency and transparency.
Topics covered included:
– Why the ‘blockchains without bitcoin’ idea is so controversial
– Why it is strange that KYC is done widely on Bitcoin users but not on the validators
– Why even semi-decentralized blockchains can provide big efficiency gains
– Why the 51% attack possibility is an obstacle for the use of the Bitcoin as a settlement network
– Why financial institutions don’t care about censorship resistance but do care about irreversibility