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Similar to what happened with voice communication, the financial infrastructure will suffer an inversion[1], the banking platforms will run on top of a global v
by pablovidal85 10y ago
Similar to what happened with voice communication, the financial infrastructure will suffer an inversion[1], the banking platforms will run on top of a global value-transfer protocol, instead of the other way around. What you describe at the end of your comment already exists, bitcoin exchanges are using a federated bitcoin sidechain[2] to transfer funds between themselves within their own consensus rules (they could implement reversals or any other feature without having to break the bitcoin consensus).
[1] https://www.youtube.com/watch?v=pKs5JSh3z7A https://www.youtube.com/watch?v=pKs5JSh3z7A
[2] https://blockstream.com/2015/10/12/introducing-liquid/ https://blockstream.com/2015/10/12/introducing-liquid/
- hueving 10y agoAn inversion only happens when there is an incentive to do such. IP networks became much cheaper to run reliably and in a scalable fashion. What problem does bitcoin solve for banks?
- pablovidal85 10y agoIt solves exactly the same problem, using a distributed network of peers reduces costs while increasing security and availability.
- hueving 10y agoIs there anything that shows banks have had difficulty with the security or availability of bank-to-bank transactions?
- pablovidal85 10y agoI don't think difficulties are involved here at all, lowering costs generally translates into higher profit, that should be enough to invest in new technology.