It’s about Trust, Stupid! Why Blockchain-based BlockCerts are the wrong solution to a false problem (1/3)


Metaphor for blockchain-centred systems—when a part becomes the whole

Why Blockchains?

The rationale for the initial development of blockchain technologies like Bitcoins, was to solve the problem of double spending while simultaneously:

  • Getting rid of regulatory bodies — the dream of the proponents of anarcho-capitalism also called libertarian anarchy, one of the ideologies widely shared between the alt-right, Trump and Silicon Valley (c.f. their track-record in tax dodging).
  • Getting rid of the need for trusted authorities to secure transactions — which resulted in creating an ecosystem that works best when everybody is at war with everybody. Trust is a mortal sin as trust between the miners could lead to collusion and cheating.

“Cryptocurrencies are among the largest unregulated markets in the world. We find that approximately one-quarter of bitcoin users are involved in illegal activity. We estimate that around $76 billion of illegal activity per year involves bitcoin (46% of bitcoin transactions), which is close to the scale of the US and European markets for illegal drugs.” – Foley, Karlsen, Putniņš, Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed Through Cryptocurrencies?

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