Venture capitalist and investor nowadays has been announcing publicly and loudly that they are eager to invest fully in blockchain yet they refuse any ICO, or crypto-currency or bitcoin related startup .
This misconception represents a fundamental failure to understand that the real value proposition is a decentralized system, not only by architecture but also by control, policy or authority.
This system needs a mechanism by which the network can be secured, trusted, immutable, transparent and providing a solution to the Byzantine General's Problem.
That mechanism is a competition based on game theory that involves miners or stakers that compete by staking a digital currency and using that to guarantee that they will follow the security rules (consensus) they will get rewarded again in currency of the network . The consensus is the heart of making the system secure without a currency you cant do the security without a currency you need a central authority to decide if a transaction should be included or not .
At that moment its no longer open or borderless or senatorship resistant it become completely useless .
Without proof of work, is there anything really new about blockchain(s)?
More informed VC consultant will raise the private blockchain term, private blockchain is just a confusing name for a shared database .
The word blockchain is meaningless , the truth is that vc’s are dominated by the bank power to limit innovation!
The banks have very little use today for open global blockchains, because open global blockchains essentially mean the replacement of banking as an institution with banking as a network protocol and an application witch takes away all the power of control that the banks have. to use a blockchain is to give up all control.
The best practice of blockchain is money. Smart contract development is still in progress and have a serious oracle issue. Outside permissionless, public cryptocurrency the blockchain tech is obsolete.
The light bulb did not come from continuous improvement of the technology of candle.
The banking and monetary system cant be improved it should be replaced.
Fraud scam and shitcoins are old school argument. you can not escape the responsibility of tomorrow by evading it today (benjamin franklin) .
Such discussion are used to mislead the evolutionary revolution behind bitcoins and crypto currency.
Awareness and education is the remedy .
ICOs have attracted more money in the past half decade than VC fundraisers, and this likely has to do with the ICO’s inclusive, low-barrier to financial entry.
As the industry evolves, though, we’ll likely see more venture capital gravitate towards crypto-currencies and blockchain companies, so we’ll see if this old dog can keep up with the budding industry’s new fundraising tricks.
The new age of digital currency will create a new type of freedom so it s up to the children of tomorrow to lead a revolution to a new evolution .
Hi @aro.steem
Just bumped into your profile just to realize that we seem to share a number of interests :)
In particular that we both share a similar passion towards cryptocurrencies and blockchain technology :)
big fat upvote on the way! :)
I will follow you closely :)
Take care, Piotr
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thank you Piotr, you are welcome and followed back. keep in thouch
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What do you mean by 'without proof of work, is there anything really new about block chains?' I get what you mean with the decentralization, but you're posting this on a proof of stake network :P also, what are Oracle issues and what do they have to do with smart contracts? Cheers
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processing, securing and validating the network and protocol belongs to the proof of work, the way nodes and miners give proof and get rewarded, proof of stake and other proofs converge toward the same aim, keeping the authority/consensus decentralized not owned by one party, so it can cheat or put its hand on the network. using Oracles is about reading external data e.g. on the internet, api etc.. and bringing it into the smart-contract on the blockchain e.g
ethereum / solidity, how could you trust this data / provider e.g. weather data or whatever it is, and proceed your logic after on..
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Ok, figured the proof of work thing was just a way to ask the question. Oracles are interesting though, haven't heard of them referred to that way, but they're an issue in a lot of things. In my secure computational methods class we discussed a similar thing with n of m shares encrypting/decrypting a message. Definitely need to have good verification methods, although some data should be easily verifiable (e.g. Multi-Part contract, should be easy to tell you received money on block chain before you complete your part of the contract)
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