Erlay Preserves Bitcoins Decentralization – Bitcoin Magazine

[ad_1]

This is an opinion editorial by Kudzai Kutukwa, a passionate financial inclusion advocate who was recognized by Fast Company magazine as one of South Africa’s top-20 young entrepreneurs under 30.

Satoshi Nakamoto brilliantly laid out in a few short sentences the major problem with the current financial system; it’s dependency on trust. “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.” In other words what really drives the fiat monetary to a great extent is trust, because without it the system as we know it wouldn’t be functional, however the trust is being placed in untrustworthy individuals and institutions. The Bitcoin monetary system is trustless and decentralized by design and is reliant on cryptographic proof instead, thus removing altogether the need for “trusted intermediaries” in every financial interaction, from the central bank all the way down to transactions between individuals.

[ad_2]
#Erlay #Preserves #Bitcoins #Decentralization #Bitcoin #Magazine

mrB

Related Posts

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

[ad_1] Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the…

IND vs AUS: Shreyas Iyer declared fit for the second Test; Jasprit Bumrah to miss the ODIs as well

[ad_1] India’s star batter Shreyas Iyer who did not play the first Test between India and Australia due to a lower back injury, has been declared fit…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

[ad_1] A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to…

IND vs AUS: “I Had A Tough Time, Dale Steyn And Morne Morkel Were At Their Peak”

[ad_1] Indian batter Cheteshwar Pujara will play his 100th Test match against Australia at the Arun Jaitley Stadium in Delhi starting Friday, February 17. And ahead of…

Dogecoin, Shiba Inu Soar As Elon Musk Announces Twitter CEO

[ad_1] Elon Musk, who is still searching for a new Twitter CEO, jokingly introduced a dog as Twitter’s new CEO, sending the prices of Dogecoin, Shiba Inu…

Chetan Sharma’s sting operation: Here are the startling revelations made by Team India’s chief selector

[ad_1] Former India cricketer and current chief of the BCCI selection committee Chetan Sharma has made some shocking revelations in a massive sting operation conducted by Zee…

Leave a Reply

Your email address will not be published. Required fields are marked *