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leishman | 1 year ago

If tokenization requires a trusted party to issue the tokens (think stocks) then no blockchain is needed

discuss

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wslh|1 year ago

There's an intermediary scenario to consider: when multiple trusted parties are involved. This is basic computer science, and software engineering: crash and byzantine fault-tolerant systems.

On a related note, blockchains often obscure the true consensus mechanism behind layers of complex jargon. Upon closer inspection, consensus is still built on trusted parties, just not the same ones typically found in the traditional economy. In Bitcoin, for example, you not only have the relatively few powerful miners but also the Bitcoin Core developers, who wield significant influence over which changes are incorporated into the Bitcoin node. For example, enabling the OP_CAT opcode again [1][2].

[1] https://www.reddit.com/r/CryptoTechnology/comments/19bik6z/u...

[2] https://www.reddit.com/r/Bitcoin/comments/19adyi0/should_op_...

kinakomochidayo|1 year ago

Then that means stablecoins aren’t needed.

And yet, reality disagrees with your logic and stablecoins are on track to be used even more.

Tokenization on Ethereum will end up being way more important and useful than pet rock Bitcoin.

hocuspocus|1 year ago

The most popular stablecoins aren't trustless, proving the parent's point.