Comment by nivertech
1 day ago
It’s based on a social consensus only, the rest (Nakamoto Consensus, PoW, longest chain, difficulty adjustment, block halving, artificial limited supply, decentralization, censorship-resistant P2P network, open source, etc.) is a combination of a Rube Goldberg machine & crypto bros LARPing.
I halfway disagree:
There is a huge scientific merit of the algorithms for reaching a distributed consensus when not all participants can be trusted (including the fact that the Bitcoin paper uses game theory to give evidence why malicious entities attempting to create another fork will by the mere design of the algorithms have a hard time).
What is, of course, social consensus are some aspects about what it "socially" means that there exists this concrete consensus in the blockchain. By the design of the protocol and its data structures, there do exist boundaries concerning possible "social interpretations" of this consensus, but a lot of aspects are up to different interpretations.
> There is a huge scientific merit of the algorithms for reaching a distributed consensus when not all participants can be trusted
Not quite. Distributed consensus had been solved in the 1980's theoretically and the 1990's practically, even in the presence of byzantine nodes. What Nakamoto consensus was first in was to extend this to the permissionless setting (at enormous expense & inefficiency, and with no benefits, in my view; though enabling large scale rule breaking or "censorship resistance", which some see as a benefit).
Nakamoto Consensus didn’t solved a secure scalable PBFT (Practical Byzantine Fault Tolerant) Consensus.
Bitcoin didn’t solved a forkability and finality problems. Blockchain (or more properly hashchain) is a linked list of hashpointers, and since anyone can create a hashpointer pointing to the head of the hashchain - it means anyone can fork it. And indeed Bitcoin was forked multiple times, and the solution to forks was almost always either centralized and/or social.
IMO PBFT consensus algos have a niche applications anyway, and not required for Electronic Cash implementation, only for decentralized and/or disintermediated Systems-of-Record, but that’s a complete opposite of bearer instruments like electronic cash.
Bitcoin is the OG Birkin Handbag. Valuable for the story. People compete to own a bit of it for that. You can create your own Bitcoin clone and own all of it! But no story, no value.
> You can create your own Bitcoin clone and own all of it!
That is what I wrote:
> What is, of course, social consensus are some aspects about what it "socially" means that there exists this concrete consensus in the blockchain.
In your private Bitcoin clone, such a consensus has a "socially much more boring" interpretation.
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> There is a huge scientific merit of the algorithms for reaching a distributed consensus when not all participants can be trusted
Yes, they existed a long time ago and aren't wasteful as a way to generate "value".
> Yes, they existed a long time ago and aren't wasteful as a way to generate "value".
Can you give me a literature reference for such a result, because this claim surprises me.
Of course Merkle trees existed long before - but they are just "cryptographically signed data structures", and thus don't solve the distributed consensus problem.
Of course eCash existed long before - but it depended on some central authority.
Of course distributed consensus algorithms existed long before - but they depended on the fact that all participants are trustable.
Thus, in my opinion Satoshi Nakamoto indeed made a really important scientific contribution for a quite specific algorithmic problem.
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That "rube goldberg machine" is what makes social consensus possible in a distributed system where everyone is anonymous and there's no single centralized authority.
Yes, but no. The Rube Goldberg of PoW isn't just for show, it's a protection from Sybil attack (not that it makes the economics of it any less of a disaster).
You cherry picked one thing from the list, and even there made a mistake.
In Bitcoin PoW used as a method for leader election of the node composing the list of validated transactions on the ledger (aka block), or even an empty list of transactions (aka Nakamoto-style Consensus).
But without all the Rube Goldbergian nonsense it’s simply an illegal/unlicensed lottery where the participants pay with electricity for the right to earn records on the longest chain (aka UTXO with mining block rewards).
> You cherry picked one thing from the list, and even there made a mistake.
Not quite. Nakamoto consensus is PoW + LCR, and the PoW part is for Sybil resistance, and the LCR part is for consensus.
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Seems someone missed the boat...
Nocoiners cannot understand Bitcoin?
Some do and have reasonable criticism, but you are just mixing up concepts and sound pretty bitter - hence my assumption.
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