What has the network produced in the real economy?
It’s possible bitcoin may produce something someday. But look at it from an outside perspective: a bunch of people, motivated by an idea, have got together and commissioned the burning of coal and oil on a vast scale.
Bitcoin more or less operates as “proof of carbon”. Imagine if a crypto network operated by “proof of art burned” or “proof of buildings destroyed”. And people got together and directed capital towards buying up art and burning it, or buying real estate and knocking this down.
And this secured their currency network. You’d have to have some very good output from the network to justify such waste.
Because proof of work is proof of waste. That’s how it’s set up and secures the network. Unlike existing systems it is antiefficient. And currently it is setup to waste carbon and GPUs.
> What has the network produced in the real economy?
Well according to this article it has allowed a nation state to avoid international controls and restrictions. Satoshi himself would be proud, it pretty much what he was imagining.
> What has the network produced in the real economy?
It has lessened the impact of economic sanctions imposed on a nation. I think that's direct proof of how valuable cryptocurrency is. People should be free to trade without some country imposing bullshit sanctions on them.
Monero transactions use ring signatures and are very difficult to trace. Each transaction is signed by at least 11 keys and there's no way to tell which key is the source of the coins. The source and destination addresses as well as the transaction amounts don't show up on the block chain. Even if they did people can just make new subaddresses to make correlation extremely difficult if not impossible.
The US treasury tried to sanction a Monero address once. They ended up sanctioning a transaction identifier.
Bitcoin is a public ledger of all transactions: if I know your wallet address I can see how much money is inside it, and I can see how much money you’ve sent to other wallets, what wallets you’ve received from etc etc
Monero anonymizes all this, no one can see how much money is being sent where.
It’s possible bitcoin may produce something someday. But look at it from an outside perspective: a bunch of people, motivated by an idea, have got together and commissioned the burning of coal and oil on a vast scale.
Bitcoin more or less operates as “proof of carbon”. Imagine if a crypto network operated by “proof of art burned” or “proof of buildings destroyed”. And people got together and directed capital towards buying up art and burning it, or buying real estate and knocking this down.
And this secured their currency network. You’d have to have some very good output from the network to justify such waste.
Because proof of work is proof of waste. That’s how it’s set up and secures the network. Unlike existing systems it is antiefficient. And currently it is setup to waste carbon and GPUs.