Note — Feb 10, 2019

No Good Reason to Trust Blockchain Technology

Seen in → No.66

Source → wired.com/story/theres-no-good-reason-to-tr...

Bruce Schneier with a methodical tear down of the trust claims of Blockchain tech, how they relate to real world trust (and what it is), the ways in which it doesn’t work in Bitcoin, etc. Very well argued and explains some angles often not covered.

What blockchain does is shift some of the trust in people and institutions to trust in technology. You need to trust the cryptography, the protocols, the software, the computers and the network. And you need to trust them absolutely, because they’re often single points of failure. […]

In many ways, trusting technology is harder than trusting people. Would you rather trust a human legal system or the details of some computer code you don’t have the expertise to audit? […]

These issues are not bugs in current blockchain applications, they’re inherent in how blockchain works. Any evaluation of the security of the system has to take the whole socio-technical system into account. Too many blockchain enthusiasts focus on the technology and ignore the rest. […]

Honestly, cryptocurrencies are useless. They’re only used by speculators looking for quick riches, people who don’t like government-backed currencies, and criminals who want a black-market way to exchange money.