Trusted third parties are security holes. To try to fix them without advanced computer science & copious computational resources, they inevitably end up being obsessed about governance. That's the layman's best clue that they are dealing with an insecure protocol.https://twitter.com/nlw/status/1151553014307704837 …
-
I think we have all the knowledge needed to do this. Bitcoin holdings can be made stable by using derivatives to hedge price. And those derivatives can be implemented in a trust-minimized way by making difficulty and fees available to Bitcoin scripts.https://medium.com/@RubenSomsen/bitcoins-hidden-proof-of-work-asset-4b4d086f73e2 …
Interesting idea, I don't discourage pursuit of it, but seems to depend on an unlikely distant future where electricity is never highly subsidized and hardware innovation is no longer possible. And the stable coin will have to pay a big risk premium to the much-less-stable-coin.
-
-
If the maturity of derivatives is short enough (eg. daily) longer term changes in electricity price and HW efficiency are not very important. They are also quite stable and easier to forecast. In the longer term, I believe bitcoin will be the stable coin.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.