It’s not currency per se, but the essential use case of crypto seems to be to automate the third party.
This “third party” can be many things. It can be a securities dealer or broker. It can be a notary. It can be a judge that is practicing contract law.
Whenever there is a third party that somehow allows coordination to take place, and the particular case doesn’t require anything but mechanical work, then crypto can do it better.
A securities dealer or broker doesn’t beat a protocol that matches buyers and sellers automatically. A notary doesn’t beat a public ledger. A judge in contract law doesn’t beat an automatically executed verdict, previously agreed upon in code.
(like damn, imagine contracts that provably have only one interpretation. Ain’t that gonna put lawyers out of business)
And maybe a bank doesn’t beat peer to peer transactions, with the caveat that central banks are pretty competent institutions, and if anyone will win that race it is them. While I’m optimistic about cryptocurrency, I’m still skeptical about private currency.
I may have finally figured out the use of crypto.
It’s not currency per se, but the essential use case of crypto seems to be to automate the third party.
This “third party” can be many things. It can be a securities dealer or broker. It can be a notary. It can be a judge that is practicing contract law.
Whenever there is a third party that somehow allows coordination to take place, and the particular case doesn’t require anything but mechanical work, then crypto can do it better.
A securities dealer or broker doesn’t beat a protocol that matches buyers and sellers automatically. A notary doesn’t beat a public ledger. A judge in contract law doesn’t beat an automatically executed verdict, previously agreed upon in code.
(like damn, imagine contracts that provably have only one interpretation. Ain’t that gonna put lawyers out of business)
And maybe a bank doesn’t beat peer to peer transactions, with the caveat that central banks are pretty competent institutions, and if anyone will win that race it is them. While I’m optimistic about cryptocurrency, I’m still skeptical about private currency.