Doge Branded as Ponzi by Federal Reserve Bank of Minneapolis President

Re:Doge Branded as Ponzi by Federal Reserve Bank of Minneapo... by mullingitover on Monday June 21, 2021 @02:40PM (#27582353)

> Distributed Betting Markets (Transaction locked up depending on outcome of a sports game) Distributed Derivatives (financial instruments locked up based on price/date) Distributed Insurance (If I'm a farmer, I could put money up based on rainfall, price of wheat, or other metrics).

Don't the executions of these contracts still depend on a (centralized) outside source of information which pretty much wrecks the decentralized aspect of the network?

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Re:Doge Branded as Ponzi by Federal Reserve Bank of Minneapo... by thebean11 on Monday June 21, 2021 @02:53PM (#27582604)

No, the outcome is decided by the consensus of betting market participants, with mechanisms to "punish" liars/bad oracles.

https://augur.net/faqs

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Re:Doge Branded as Ponzi by Federal Reserve Bank of Minneapo... by mullingitover on Monday June 21, 2021 @03:07PM (#27582850)

Reading through this, I don't see any guarantee that your contract would be safe from bad oracles if the stakes are high enough and the attacker has adequate resources. If your attack is successful, you not only get steal the amount at stake in the contract, you steal what the good oracles have staked, and all with zero recourse.

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Re:Doge Branded as Ponzi by Federal Reserve Bank of Minneapo... by thebean11 on Monday June 21, 2021 @03:38PM (#27583334)

Yes, there is not a guarantee, but the goal of these consensus mechanisms is to make the cost of attack greater than the reward.

In order for a successful attack, I believe you'd need to control a very large portion of all available REP. If your attack is successful, the value of your REP would likely go down (as the market is no longer trusted) so there's likely no economic incentive to do such an attack.

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