The future of blockchains?

I also think it is noteworthy that actual cryptocurrency exchanges exist to get around the limitations of blockchain-based settlement. It’s hard to short bitcoins or buy bitcoins on margin, which is why exchanges exist and use off-blockchain methods (lending you money, keeping custody of your bitcoins, etc.) to allow you to do those things. (Sometimes that’s a mess!) It’s not like you’re using the blockchain to buy bitcoins with dollars on a cryptocurrency exchange; you’re using your credit card. If you want to rebuild the regular financial system along blockchain principles, you have to wrestle with the fact that even the bitcoin financial system doesn’t really operate on blockchain principles.

That is from Matt Levine.

Comments

"It’s not like you’re using the blockchain to buy bitcoins with dollars on a cryptocurrency exchange; you’re using your credit card."

This statement is ridiculous. While many exchanges do accept fiat (many only accept fiat through wire tranfsers), all exchanges support coin as *currency* with coins as the only way to acquire other coins.

A bit simplistic in my opinion; Bitcoin system does exist on off-blockchain methods IF we only take Coinbase into consideration. Most exchanges run on Trading pairs of Bitcoin, Ethereum etc. The exchange is still a central point of failure (Mt.Gox for e.g.), which leads to the evolution of decentralized exchanges (0x protocol) built on blockchain methods. It's only a matter of time until exchanges running on blockchain principles (smart contracts) allow Fiat Trading pairs (FDIC integration on decentralized platform is the challenge in my opinion).

"In fact there are three freely convertible currencies in the Galaxy, but none of them count. The Altairian Dollar has recently collapsed, the Flanian Pobble bead is only exchangeable for other Flanian Pobble Beads, and the Triganic Pu has its own very special problems. Its exchange rate of eight Ningis to one Pu is simple enough, but since a Ningi is a rubber coin six thousand eight hundred miles along each side, no one has ever collected enough to own one Pu. Ningis are not negotiable currency, because the Galactibanks refuse to deal in fiddling small change. From this basic premise it is very simple to prove that the Galactibanks are also the product of a deranged imagination."

-- The Hitchhiker's Guide to the Galaxy

What remains to be seen is which of these three currencies is the end game of the blockchain.

His point is tat the monetary congestion issue remains, blockchain is a ledger, not a trading pit. We might specify infinite blockchain, suffers the problem. We can conceive of a blockchain with the delete function, the trader issues some escrow instructions,and they are auto execute,d keeping state, on the blockchain, then upon completion we delete the trace. This model opens a variety of easier and equally useful blockchain uses, none of them needing a native coin.

His issue with Coinbase jamming up is correct, Coinbase ends up being an automated savings and loan pit because it has to apply transaction fees to manage congestion. But that is just fine, as long as its tradebook is equally observable by the trading bots.

All this stuff gets sorted out and the necessary enhancements done, it is a been there done that for the techies.

Also consider that bitcoin, cryptocurrency, and block chain are all still morphing into the best versions of themselves. The problem described in this excerpt is one that Ethereum and other altcoins are fast focused on fixing. It is early to say that bitcoin/blockchain has in some way failed because crypto exchanges operate in a similar manor to fiat exchanges. Smart contracts are in their infancy. Perhaps the problem is too complex but there is always a chance that they will guide our trading or even lives in unknown fantasy like ways.

Crypto can never fail. It can only be failed.

At least $KODK just came out with an applicable use for it that doesn't equate to the power usage of Maryland, each day, to process transactions.

The future is seriously bright when we talk about Blockchain, but the only issue is that we need to be very wise with our decision making. Whether this is with investment on upcoming ICOs or whether this is to do with trading. Luckily, I have sorted out the latter issue through Pure Investments. They are one stop shop for all this, and are the reason why I just love it in every possible way one could thought of to be! With their FREE package present, it is not tough to know their worth!

Or: "How I turned $10 into enough bitcoin to pay the manager of a Nigerian bank to release the funds of a lately deceased minor member of a once-royal family."

+1 to more Matt Levine posts.

There should be LITTLE doubt about the future of Blockchain, it is just started! We will definitely see more and more companies joining in the fun here. So, we MUST not miss out on becoming part of this. I love investment on Cryptocurrencies, as that is really the FUTURE. And, then option like Duecoin, it makes even more beautiful reading for all involved. duecoin.io

There should be LITTLE doubt on how much Blockchain will work in future. It is going to be part of just about EVERYTHING. That’s the reason why investment on this technology is just going to be huge in future and we should not be missing out on such giant chance. There is this upcoming thing called Boldcoin, it is absolutely fantastic with having everything you could ask for and that include getting 10% bonus going in early now.

I think it is good technology and is something that will play a larger role in future as well. I see absolutely nothing wrong with it. With the Crypto world on peak of its power, it is obvious that this technology is just going to be used more. The latest addition is Blendcoins, it is going to be the NEXT CHAPTER in the world of crypto with their UNIQUE touch!

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