Secure the Network, what is it worth?

in #leofinancelast year

Yo, what is it worth to keep our balance safu in crypto?

What is fair, what is unsustainable.

If we think about Bitcoin as a major example.

It is really safe in terms you will have the same bitcoin balance tomorrow from the network side. So if you have 1BTC, you will have it most likely tomorrow.

That's and to get transaction made (+ transaction fees) is the network fee.

If miners earn a lot, the network is more save. But if we think about that from point of efficiency, it not the best what it can be.

Sure Digital balance must be protected in the physic world too. That's why high costs ( Hardware, energy, effort) secure the network.

In general a good idea in terms of security ( and if we don't count in, it becomes at some point centralized because of cost).

But it is also unsustainable. Bitcoin was the first, it doesn't mean it is the best. You can agree or disagree. I don't use a win 95 today.

Problem is, at some point, the costs become too expensive to run the network, so it needs higher prices. Or price falls, mining stops and the difficulty becomes lower too. Let's stop talking about the extremes.

Bitcoin offers no benefit by nature with higher prices. It's the same coin. And before you call it extreme FUD,

Let's think about 30 years. I don't think it will work out.

It simply becomes too expensive. ETH has even bigger problems. Will someone pay in 10 years 2500$ gas fee? I don't think so. ETH 2.0? Nobody knows how that will work out. It can be a super centralized thing, that's not open for the average ( paywall).

Remember the starting question? What is it worth to secure the Network?

Very difficult and subjective. Permissionless transfers are really valuable. True Ownership too.

If needed, it's incredibly valuable.

About Hive

It is cheap to run and decentralized by token holdings. Fast and free transfers.

But it overs not nearly the same security as bitcoin. Simple because the top 20 can talk to each other end decide what happens. On bitcoin, things take forever before some update happens.

A fork? Yes can always be, but on a large scale, it will destroy trust. Also technical I expect it depends on all to our current witnesses.

Don't get me wrong on that point, they do a good job. The chain is secure and it runs smoothly. There are a lot of very smart people in Top20 I respect a lot!

Does it mean hive is bad?

No. It's brilliant. But the top 20 could work in theory like a cartel.

That's for now no problem. And we vote for them because we trust them.

More competition would be not bad in a long run on this, to become in theory more secure.

let's talk about competition in theory

If tokens are decentral and votes decay, witnesses need to offer something to their voters. Voting become a more active part of the game.

Will avg people vote more? nope.

Has its risks? yes.

Can the chain profit in a long term from that? Off course.

I know there was some talk about vote decay. Not sure it is still a thing. Another way would be top bring more people active in the top 100 witnesses in an attractive.

Why this talk?

Because crypto is about trust in code, trust in the network. Hive can have a very bright future. But it needs to be more secure. Newcomers don't know the witnesses. They don't know there are legit or not. Power-up is a minimum of 3 months commitment.

And really wealthy people see the Justin sun story very differently.

For us, community against an Invader.

What they are seeing, it is possible their funds can be deleted, frozen, or whatever. The fuck around ( not the fork) with the steemit funds was the showcase, in theory, funds can be taken away.

That was also the point I am not a big fan of the documentary about the takeover. It shows everyone "what is possible".

And before you say " it was always possible and on other chains, it can happen to".

True and this offers and unique opportunity hive can be different.

The negative mantra of funds that can be taken will otherwise stay forever in the room.

Fix that problem and hive has a nice chance to become really big.

Agree or disagree. Security is the reason why Bitcoin is this valuable and IMO Hive can offer something like that with DPOS.

Some last words: This post is not fud. This is something sooner or later in the next years chains will face.

The best solution would be a relatively cheap and highly secure way to transfer value on the internet ( also extremely large amounts).

What's your opinion?

I'm wrong on that?

Do you see it differently?


There are advantages and disadvantages for everything. From what I see, HIVE definitely has that issue but I don't think it would ever happen. If they did, the trust would collapse and things would get crazy fairly fast.

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Agree, I don't think either it would happen. But as long it is possible, it's a problem.

The question is, how much is it worth?

Think about it would be impossible or close to impossible. Can you imagine the worth of hive at this point?

There is no real way to know how much it is worth but I think all the rewards for witnesses are paid in HP. So they need to powerdown if they ever wish to take profits.

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