The technological ingenuity of the blockchain is a development that should not be underestimated. Using this ingenuity, cryptocurrencies provide an economic system that is untethered from a centralized banking ledger. The system’s primary genius comes from the large-scale communal recording and verification process of economic transactions (bitcoin mining). No trust is required in a central apparatus to verify trades. Even though the ledger system, which records who owns what, is decentralized and public, it requires zero faith that individual actors will not tamper with the ledger. The only way to alter this system outside of its intended structure (e.g., the only way to enshrine fake transactions in the communal ledger which benefit you) is to provide more processing power than a majority of the miners.
CryptoCurrency and the End of Capitalism (1/2)
CryptoCurrency and the End of Capitalism…
CryptoCurrency and the End of Capitalism (1/2)
The technological ingenuity of the blockchain is a development that should not be underestimated. Using this ingenuity, cryptocurrencies provide an economic system that is untethered from a centralized banking ledger. The system’s primary genius comes from the large-scale communal recording and verification process of economic transactions (bitcoin mining). No trust is required in a central apparatus to verify trades. Even though the ledger system, which records who owns what, is decentralized and public, it requires zero faith that individual actors will not tamper with the ledger. The only way to alter this system outside of its intended structure (e.g., the only way to enshrine fake transactions in the communal ledger which benefit you) is to provide more processing power than a majority of the miners.