The blockchain community would have us believe that the world is either centralized or decentralized with the former being the problem to be solved by the latter.
We have seen a proliferation blockchain platforms (quantity not quality). Yet, we have not seen a corresponding adoption or proliferation of use cases. We have simply not seen any credible or widespread use cases that have demonstrated a benefit or value beyond media hype. A critical analysis of the value gained from “decentralized” platforms will prove that a positive TCO is rather elusive.
This article explores why decentralization has failed to provide value…
The most significant information technology problem in the world today is that neither person nor company has the ability to authoritatively control their transactional data when shared with another.
To establish context on this problem one only need to ask one of the following questions:
When I move from one bank to another bank can I also move my transaction history? No.
When I use the Internet is it possible for me to control session state? No.
When my company wants to share data with another company, can this be done in a manner where it can be proven, unquestionably…
We have launched!
TrxSys.com, our self-funded startup out of Portland, Oregon, has launched a centralized blockchain offering Transaction as a Service. This is a complete redesign of blockchain, and, yes, we do have a blockchain. It is also centralized. We have a cryptocurrency, but no nodes and no mining.
We chose to build a centralized blockchain because it is the correct architecture for the problem that we are trying to solve: Authoritative decoupling of data.
Before you dismiss us as not being a “real” blockchain. Consider the following.
There is Software as a Service (SaaS)
There is Platform as a…
Which has greater value? Cryptocurrency or the transaction?
Consider for a moment how you define “value”?
Cryptocurrency is of far less value than the potential of the transaction. Unfortunately, cryptocurrency has dominated the discussion related to blockchain. The industry has evolved to equate cryptocurrency price with value. Value is something other than the price that a cryptocurrency is trading at. One should consider the utility, the functionality and capability offered by a system.
To be clear, the volatile and speculative nature of cryptocurrencies have thoroughly discouraged those who might benefit from using or developing applications upon a public, non-repudiation and…
Cryptocurrency will never replace cash. More specifically, cryptocurrencies will never replace paper and coin fiat currency (currency issued by a government). We will also never see cryptocurrencies facilitate our common purchases. Cryptocurrencies may persist as a proxy for fiat, but, with regard to cash, cryptocurrency fails as a replacement.
Displacing cash is a very narrow topic within the broader cryptocurrency theater. In future articles I may touch on broader topics such as monetary policy and the economics of cryptocurrencies. But, to begin with, and in the fairness of disclosure, I am not an expert in economics. My expertise is with…
Blockchain is all about trust. But, when can one actually trust that a transaction has become, well, trusted? This may seem like a very odd question. Many think that the moment a transaction is written to a blockchain that it can then be trusted. Unfortunately, and especially for high value transactions, this is not the case. Keep in mind that a blockchain is a serial ledger. One transaction, or rather one block of transactions, is written one after another. As new blocks are written to the blockchain a question may exist as to which block will become authoritative. The longest…
Byzantine Fault Tolerance (BFT) is the foundational theory enabling most any blockchain system to validate transactions in a decentralized network. Consensus algorithms strive to implement BFT. Unfortunately, the allegory of the Byzantine Generals Problem, as adopted by the blockchain community, suffers from some logical fallacy in actually providing nonrepudiation in decentralized networks.
By Robert Vaughn
November 8, 2019
The blockchain community has promoted the notion that today’s blockchain is like the Internet of the early 1990s. I am here to say that no, what we’re seeing with blockchain is nothing like the early days of the Internet.
In the early 1990s, before Netscape or Internet Explorer, long before Google or Yahoo existed, long before you could stream videos on Netflix or post cat pictures on Facebook the Internet existed and it was useful. And that is the difference. In the early days of the Internet it was useful. …