It doesn't need to have a profit motive to cost more. It's costs are what cost more.

But there is no reason for it to cost more than a private blockchain solution.

Sure there is, simply by virtue of being the only solution available. All of a sudden, a simple database becomes a sprawling corporation with a multimillionaire board of directors, waging political war among themselves for resources, power and an ever larger number of underlings.

The private sector is not magically superior to a state bureaucracy, without any competition or political pressure to reform it can act even worse.

> a sprawling corporation with a multimillionaire board of directors, waging political war among themselves for resources, power and an ever larger number of underlings.

A blockchain does not get rid of those things.

Erm, yes it does. DTCC has a board of directors. It is a company. This blockchain eliminates that. Literally.

Can you explain? To me, it seems like control is what matters. And the DTCC controls access to its databases, whereas JPM controls access to its blockchain. Whether the parent organization is adding a +1 to a database or a +1 to cryptographic ledger seems inconsequential.

>JPM controls access to its blockchain

Only for the initial group of banks invited to participate. After that it would be up to the consensus algorithm to decide if a prospective member can join.

> DTCC has a board of directors

A large business "has" a lot of things. Why bring up board of directors specifically? I'm sorry but this sounds more like fumbling to grasp a point rather than an actual example of something useful.

I didn't bring it up, the comment you responded to did. You said that it didn't get rid of it, but it does. It gets rid of the entire DTCC company, and all of the salaries that go along with that. All of those costs go to zero.

I'm talking about competition, whatever the technical implementation. That's precisely the point, cost is determined by market structure and incentives, an inferior solution can be much cheaper due to lower margins.

I'm not sure I understand your point. Blockchains do not get rid of competition.

They don't but most competition does lower prices which is his point.

Who's pitching "but blockchain"?

While you show clear ridicule for some sort of "blockchain fad", I don't see anyone pitching a solution here.

I see JPM literally implementing one, and I would assume there is a cost reduction they've calculated.

Typically the cost reduction expected is due to eliminating rent seekers.

Which rarely happens, as new rentseekers replace old rent seekers.