I believe currency, especially global decentralized ones, is a winner take all. There's an opportunity cost to holding two currencies. I can't have my maximal purchasing power in both, as one will be weaker. The only way for nano to succeed is to convince regular people to adopt it. And the best way to get regular people to adopt it, en masse, is to convince Bitcoin holders to give up their coins and switch. As of right now I'm not convinced.Here are my options1)Fiat Pros: accepted everywhere around me. Transactions are instant for their purposes Cons: inflation Robs me of purchasing power2)Bitcoin Pros: can't debase it, so it's a better store of their purchasing power, when used to save (long term) than Fiat since governments can't stop their printing machines. Has the largest cryptocurrency network (really big) with the most liquidity in it so you can spend it at placesCons: At places where I can't use Bitcoin I can Sell Bitcoin easily and still have increased/not decreased my purchasing power over Fiat. Transaction fees, but I have saved money overall because my currency hasn't been debased.3)Nano Pros: instant and free transactions Cons: abysmal adoption. What's the point of no fee transactions when I can't find anyone to spend it on? Why would I save in nano when I can save in a better currency and have more purchasing power? The nano:btc ratio doesn't bode well with me and I would be losing purchasing power switching over, with no one to transact with at the end. Sure I can sell nano for Fiat when needed but that's a waste of exchange fees and I should've just stayed in Fiat. Also I would've gotten more Fiat if I had stayed in bitcoinFor the average person, there's no real urgency to buy nano. Is there something I can only buy with nano that I want? With Bitcoin, a person can understand the need for a safe store of value that won't be debased by a government. Nano can't be debased as well, but you'll be be losing purchasing power compared to Bitcoin that offsets any fees.Onto the actual technology, I have some questions and concerns:Free and instant means everyone in the world can send to themselves infinite times. Transaction flooding is simply sending as many valid transactions as possible in order to saturate the network. Usually an attacker will send transactions to other accounts they control so it can be continued indefinitely.. The attack is rated moderate. Defense is a pow that doesn't adjust? Because if it did then people won't be able to send if an attacker raises the proof of work. Who's the authority of what is spam? What if a business needs to make infinite transactions to their internal wallets. It's free right? And their solution only involves pruned nodes. Not full nodes which is needed to make the system trustless. Don't give me buzzwords like v20 is coming out. Tell me exactly how free and instant can work without bloating the requirements to run a full non pruned node. If this would be the world currency, if it advertised free transactions then people would utilize that feature.I don't think nano has true finality that Bitcoin offers. https://ift.tt/2KJeFQ9 If I'm understanding this right, it depends on who your representative is and they get to choose the right chain based on their percentage of the total supply. What if people lose their coins and it comes to a situation where we can't have someone decide? The software can be changed to lower the threshold right? But what if someone miraculously found their coins and voted on another history of the chain.If I'm understanding correctly, if there's no conflicts then consensus is fast. But in the future if everyone on Earth can make many free and instant double transactions, how will one know which one is the final chain?Also it seems like sometimes a minimum of 21% is needed to reach consensus because not all nodes will be online to vote with. A node treats a transaction as confirmed only if the number of votes of the send block is over the "confirmation quorum" of 50% from the voting weight of the representatives which are online (with a minimum of 45% from the maximum voting weight - 133 millions), so at the minimum, a transaction is confirmed with 22% from the maximum voting weight (133 millions).What... I like how Bitcoin has 100% consensus when confirmed in a block. 22% consensus is like a Bitcoin 0 confirmation. The threshold can be set by the user, but doesn't that mean there could be a another history of the network?
Submitted June 29, 2019 at 01:27PM
No comments:
Post a Comment