Re:Blockchain in a Nutshell
by AlexandrB on Wednesday May 04, 2022 @08:05AM
(#31259333)
It's funny. Cryptocurrency claims to solve the "trust" issue, but in fact does not.
While individual transactions are secure, many blockchain projects involve some level of trust and risk that is simply assumed to be zero because the project is happening on the blockchain. Examples abound, like Tether and their questionable reserves or SafeMoon and their vanishing[1] "locked" LP.
The existence of rug pulls is proof enough that blockchain doesn't solve any non-trivial trust issues. Otherwise, how could there be an entity that can break your trust and take your money?
While individual transactions are secure, many blockchain projects involve some level of trust and risk that is simply assumed to be zero because the project is happening on the blockchain. Examples abound, like Tether and their questionable reserves or SafeMoon and their vanishing[1] "locked" LP.
The existence of rug pulls is proof enough that blockchain doesn't solve any non-trivial trust issues. Otherwise, how could there be an entity that can break your trust and take your money?
[1] https://m.youtube.com/watch?v=kIUrE7Ovm5k