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by C14L
3093 days ago
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Bitcoin was a "first iteration" of digital currency. It has shown some problems. It started by allowing you to send money fast and cheap to other parties. That advantage is gone for Bitcoin. Transaction costs are huge now, and it can take hours for a transaction to get confirmations. But there are many other digital currencies that try to solve those and other problems. Even currencies that implement the Distributed Ledger without the Blockchain, where no "Mining" is required for the network to function, and therefore no large energy requirements and no cost for transactions. We are still at the beginning of the technology. |
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Most of these get rid of Proof of Work and blockchain-based distributed consensus without replacing them with any other automated and distributed method of establishing consensus.
For example, Ripple, Stellar, NEO, IOTA and EOS rely on trusted third parties to run all consensus nodes, which makes them effectively centralized, and destines them to becoming permissioned ledgers that must heed the censorship laws of any number of powerful nation-states (e.g. capital controls imposed by the Chinese government).
That makes them more similar to Venmo and PayPal than cryptocurrency.
The concept of a neutral global platform for censorship proof financial coordination is revolutionary. While Bitcoin has been effectively sabotaged with its hyper-conservative anti-adoption development roadmap, successor chains like Bitcoin Cash or most likely Ethereum could pick up the mantle and fulfil its original promise.