Re:How to create a private Ethereum network
by askmike on Wednesday July 26, 2017 @06:15AM
(#14854936)
> That seems to work for the banking system, where any malicious transactions are easily "reversed" (often just reversed on one side actually, 'paid for' by insurance / banks) and a large amount of auditing which makes it possible to clamp down on the bad actors quickly.
I work for a bank on blockchain projects. It's almost never this simple. You'd be suprised how much banking is paper based right now for the simple reason that no party wants a central solution controlled by any other party.
Re:How to create a private Ethereum network
by mercer on Wednesday July 26, 2017 @06:54AM
(#14855117)
That's fascinating. Could you tell more about that, or maybe provide a link to more information? I find the topic interesting, and as a geek am inclined to find blockchain stuff cool and useful, but I know very little about the real-world situation/concerns.
Re:How to create a private Ethereum network
by askmike on Wednesday July 26, 2017 @05:38PM
(#14860609)
A lot of companies in all kinds of sectors (finance, healthcare, etc) are looking into blockchain (or DLT) because it allows for a database model that is not centralised. This is great in situations where you don't fully trust other parties you are doing business with.
A lot of these companies are doing experiments using private blockchains (like the private ethereum network linked in OP). However depending on how much you trust the "other" parties allowed to mine (or sign blocks), you might still have the risk where one or more conspire against you and 51% attack you. Periodically putting a blockheader of your private chain into a public blockchain would be a great solution to this, as pulling off a 51% attack on bitcoin is rather hard.
Thanks for the info! Do you perhaps have some suggestions for what a good 'next step' is when it comes to understanding all this in more detail?
Re:How to create a private Ethereum network
by just_one_time_ on Wednesday July 26, 2017 @09:35AM
(#14856052)
Can you speak more to where your industry is now in adoption? If there were some "major event" would companies like yours be ready to jump ship into cryptos quickly or are they going to be too late?
Make it easy to do but also easy to undo anything, while also having a very large amount of transparency in the system so any "bad actor" can be dealt with swiftly.
That seems to work for the banking system, where any malicious transactions are easily "reversed" (often just reversed on one side actually, 'paid for' by insurance / banks) and a large amount of auditing which makes it possible to clamp down on the bad actors quickly.
Abusing the system then no longer becomes a technical challenge so it removes the possibility that someone with the right technical prowess can "break" the system. Robbing a bank is the easiest thing in the world, just walk in and ask for money, it's getting away with it that's difficult.