Blockchain also enforces regular packet sizes and transactions that obviate the chaos of separate processing and verification of every microevent. Blockchain enables a foundation of time-stamped and immutable facts on the Internet. Among these facts must be the unique identity of the user. Your identity must be coupled biometrically to a device with an electronically sequestered private key. The first generation of crypto suffered from nerd paranoia, expressed in an unwillingness to trust anyone even to know your name or recognize your face. As internet pioneer Giuseppe Gori points out, anonymity is the original sin of the genesis blocks of crypto. To make up for the absence of unique identity, the early iterations of crypto became gigantic kludges where the same software and data had to run on all the nodes. Ethereum pushed all operations to “smart contracts” on a congested blockchain, which now is running out of “gas:” costly, slow, vulnerable, and unscalable. The repeatedly delayed remedy is to break the chain into thousands of randomized “shards,” each with the same essential flaw and a communications hairball. The brilliant Ethereum chief Vitalik Buterin may calls it “serenity,” but where is the “serenity” in that? Verifying bitcoin transactions, miners jump through peta-hoops of processing just to prove that they can. Proof of work, proof of stake, and proof of space and memory all seem to prove equally centripetal. Everything migrates to the “Middle Kingdom,” China where Xi Jinping has adopted blockchain as a “core technology” for the communist party. I celebrate this move in China. But it seems unlikely that other governments will soon accept a blockchain or digital currency controlled by the CCP. The model of anonymous users and smart contract mazes failed to scale. The only projects that could incur its costs and pay for its waste were initial coin offerings (ICO), collectively raising some $25 billion. Top U.S. Economist George Gilder Makes Big Prediction Today’s Prophecy If you are raising billions, you don’t have to worry about processing costs and mining fees, and you want everybody to know who you are. Bitcoin and Ethereum and their ilk chiefly work where fiat moneys collapse, as in Venezuela or Zimbabwe or Silicon Valley IPOs. The chief hope for such a Cryptocosm is a total financial blowup resulting from a $300 trillion overhang of global debt. For those who don’t want to wait for a doomsday cryptocalypse, a better solution is a blockstack. Blockstack is addressing the two paramount crises of the world economy — constant attacks and hacks on the internet, and constant attacks and hacks of monetary systems. Such attacks are manifest today in the egregious multi-trillion-dollar raids on the future by governments around the world. They are claiming emergency powers galore on the basis of a relatively routine COVID-19 virus threat. While trade wars and security scams proliferate, currency trading has become the world’s largest industry. At some $6.7 trillion dollars a day, up some 30% over the last three years and some 25 times world GDP, this banker’s videogame is clogging the world economy. It is stultifying the price signals that guide all productive enterprise. More on this tomorrow… Regards, George Gilder Editor, Gilder's Daily Prophecy P.S. I wanted to draw your attention to this short video that was recorded outside of Washington, D.C. This message is controversial, but I wanted to give you the opportunity to see it while it is still around. Click here to see what my colleague Graham Summers has to say. |
No comments:
Post a Comment