TLDR; We think parts of the technical design of Bitcoin and Ethereum are short sighted for different reasons, and we share a concept that is directionally closer to what I think we all are going for.
Bitcoin’s Proof of Work system is responsible for its trustless nature, but the energy consumption involved, which is by design, abuses a resource that is already scare and thus a solution we consider to be already dead upon arrival — you know, unless Tesla’s free energy system were to be magically implemented.
Proof of Stake systems like Ethereum’s basically boil down to “the biggest bags == the biggest voice” and well it’s kind of like how is that any different than the American Political-Economic partnership today.
Now to be clear the reason that we feel PoW in Bitcoin’s case is dumb, is not the use of expending massive energy to insure the integrity of a network protected from the corrupting nature of those in power too long, but using it to secure binary digits that only represent value, instead of securing the data of actual value, directly.
If we look back on warfare throughout the ages, whether in the boardroom or on the battlefield, intellectual property is one of the greatest assets that can be used to win the battle and the war, today we know this to be true when we see how the technology companies have weaponized our data against us.
Which is exactly why the proposal of networks like Ethereum, who were correct in using blockchains to secure data in away that it can be governed by its creator, switching to security measures like Proof of Stake undermine the whole integrity of a decentralized ledger in the first place because it re-introduces the need to trust the big fish not to collude or play games to materially change the system for their benefit.
The introduction of ZKproofs & Verified, Anonymous, Digital Identities in this newsletter’s humble opinion opens up the possibility of a democratically governed blockchain. One where Proof of Identity enters the picture, and could be moving us another step closer to providing a blockchain where intelligence can be governed directly by individuals, and communities alike, in a free, transparent, and accountable way.
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