|
|
|
|
|
|
by Carlton2082
1956 days ago
|
|
|
Your concerns about network trust are entirely unwarranted. In the bitcoin whitepaper published over ten years ago, before the software was even written, Satoshi explains how a trustless network might be created via Proof of Work. On the topic of price fluctuations, I'd like to point out that not only are there a plurality of stablecoins pegged against and collateralized with dollars, there are also synthetic assets like DAI which follow in Satoshi's footsteps - using game theory, economics, and finance, to novel and practical effect. I highly recommend reading the Bitcoin, Ethereum, and DAI whitepapers (in that order). https://bitcoin.org/bitcoin.pdf https://ethereum.org/en/whitepaper/ https://makerdao.com/en/whitepaper/ |
|
|
For Bitcoins, concerns about trust are warranted. Currency requires trust that it retains value; that is not given for Bitcoin and its countless clones at all.
Stablecoins collateralised by actual dollars quite obviously require trust, namely in the entity providing and holding the collateral.
Stablecoins collateralised by "the algorithm" have never been seriously tested, in my opinion, and it not clear to me at all whether you can manufacture stability algorithmically. DAI, SAI, MAI, whatever, are only collateralised by "assets" on the Ethereum blockchain, so ultimately self-referential (or, if collateralised by something tied to something real, require trust there.)