Comment by throwaway2037
16 days ago
The reason why traditional works is the fraud can be reversed. If money is stolen from your accounts, as long as you are not the cause, in most cases the institution or govt will make you whole.
16 days ago
The reason why traditional works is the fraud can be reversed. If money is stolen from your accounts, as long as you are not the cause, in most cases the institution or govt will make you whole.
It is reinvented by 'crypto' in the form of 'subjectivity' (as opposed to the hard objectivity of 'your keys your coins' and the absolute acceptance of all objectively (though perhaps fraudulent or thieving) valid transactions.
One example of subjectivity is if, and this happens, a bug is found which can drastically increase the supply of coins beyond the intent of the creators; everyone comes together and removes those state transitions manually despite their objective validity. A more practical notion would be some type of "this transaction was fraud, someone has authority to reverse it." Of course, this is a hard tradeoff, but users should be able to make it.