Re:There aren't that many uses for blockchains
by whatisweb3 on Thursday August 11, 2022 @04:17AM
(#32422921)
This is why many crypto proponents will say things like "not your keys not your coins" which means, do not hold tokens in a custodial service without understanding the risk.
Many advocates of decentralization and blockchain do not want to support centralized services like Celsius.
This is an area that laws and regulation could be added to protect users. If a service is holding user funds, there should be recourse to allow those users to withdraw the funds to a base layer, or if the funds are at risk of being frozen as we see with Celsius, this should be more clearly indicated. FDIC style insurance could be addressed in some hypothetical future crypto banks, giving users further protection.
Re:There aren't that many uses for blockchains
by soco on Thursday August 11, 2022 @05:18AM
(#32423301)
So basically replicating the way financials work today, but with blockchain.
Re:There aren't that many uses for blockchains
by whatisweb3 on Thursday August 11, 2022 @05:52AM
(#32423518)
Yes, recreating some aspects of the financial system but with an open source, permissionless, and decentralized base layer that uses more modern code and cryptography.
From that, additional applications can also be built on top - multi signatory accounts, a social graph, ownership of digital property, decentralized exchange and lending services, escrow, crowdfunding, and more.
Uh, that’s a pretty big “if”, right? It’s completely up to the custodian whether you can withdraw or not, and we’ve seen several large platforms freeze withdrawals recently (and then fold). To an average individual, the hypothetical possibility of withdrawing to the “base layer” is at best a marginal improvement over the existing financial system; hardly a revolution.