Re:The Blockchain Bubble Will Pop, What Next?
by grey-area on Monday July 30, 2018 @05:24AM
(#17643159)
The simple feature of reducing settlements from days into seconds is by itself a great use-case. However, there is a lot of structural incentives against it. If you're a big bank and make nice transaction fees because your clients trust you to make a secure, legal, and successful transaction, you probably don't want blockchain
A centralised system with trusted nodes is far better for transaction times - this is the worst use-case for a distributed ledger. Blockchains try to avoid trusted nodes, and thus their transactions are slower, because they are multi-node, by design.
Banks already provide transfers in seconds (perhaps not in your country).
Banks make money because clients trust them, they are insured, provide reversible transactions etc, not because their transactions are slow.
A centralised system with trusted nodes is far better for transaction times - this is the worst use-case for a distributed ledger. Blockchains try to avoid trusted nodes, and thus their transactions are slower, because they are multi-node, by design.
Banks already provide transfers in seconds (perhaps not in your country).
Banks make money because clients trust them, they are insured, provide reversible transactions etc, not because their transactions are slow.