Blockchains for non-cryptocurrency applications don’t make sense
There’s a lot of hype going around about blockchains and pretty much everyone is attempting to put something (including physical assets) on the blockchain. However, most of these use-cases don’t make sense to me and I’d like to explain why.
Blockchains work for cryptocurrencies because the blockchain is the sole source of truth that proves whether you’re holding the asset. If the blockchain says you (or rather your private key) is entitled to a million coins, then you are indeed a millionnaire, because whoever wants to buy your coins (in exchange for some other asset/good/service) will consult the blockchain to validate that you indeed have those coins and that you transferred it to them during the trade. Later on, when they want to spend those coins, the recipient will in turn consult the blockchain to check whether they’ve been paid.
This breaks down horribly when dealing with...
Continue reading →