This post was originally ZeMingM. It was posted on Gao’s website, but has been republished with the permission of the author. Read the full part here.
Read Jerry Chan’s commentary on “My first impressions of web3” by Signal app creator Moxie Marlinspike and “Proving that Signal app creator Moxie Marlinspike has a low signal-to-noise ratio for NFTs.” It is recommended.
Moxie describes the current status of Ethereum, which is almost entirely dependent on and therefore recentralized, because almost all dApps use either Infura or Alchemy to interact with the blockchain. .. This is not only a security issue, but also a privacy issue.
Of course, this wasn’t just an accidental design mistake by the developer, it was a natural and unavoidable result of the blockchain (Ethereum in this case) that failed in L1 (Layer 1 onchain).
I disagree with Moxie’s future outlook, but found his analysis and insight into why the current so-called Web3 and NFTs are fake. This is a person who truly understands what is happening from a technical point of view, while being honest and not compromised by the scheme of gambling scams. His future outlook is inaccurate. Not because his analysis is incorrect, but because he doesn’t really recognize a truly decentralized blockchain that is scalable at the L1 level. be But it’s just buried in the noise. Please refer to the following.
For related but broader subjects, I also recommend reading why it’s premature to get excited about Web3 by Tim O’Reilly. This is one of the very rare articles written in Web3 that is truly insightful and honest, without being dazzled by the frenzied and misleading stories of the crypto market.
In that regard, I’m looking for evidence of cryptocurrency-based capital allocation for productive investment in the investment economy, rather than capital allocation to fictitious assets. — —Tim O’Reilly
Sad state in the world of crypto, DeFi, NFT, Web3
It all started with unorthodox blockchain technology from the original Satoshi Nakamoto design and began to build on the wrong foundation at Ethereum around 2013/2014, but Bitcoin was the original inventor. Build a scalable “Digital Gold” Ponzi scheme for productivity and practicality instead of the scalable peer-to-peer transaction system that Satoshi envisioned stolen from one Craig S. Wright (also known as Satoshi Nakamoto). ..
Since then, all other “improvements” that have emerged from these moves have been market reactions and technologies to the wrong system to solve problems that arise from the wrong foundation, such as painkillers for the symptoms of end-stage disease. It was a reaction. These issues shouldn’t have existed in the first place.
But with the wrong foundation, it won’t last long. It’s just a $ 1 trillion distraction from actual technology development.
If current cryptographic development is working well, the best way they can achieve is to use additional layers and multiple intermediaries to superficially solve the scalability problem, but unfortunately! I just found that the whole thing went back to centralized Web2, and worse, it worked even better without the so-called Web3 components in the first place.
It is unavoidable because they are planetary orbits built on Earth-centered theory.
Web3 itself is not a fake. People are just building fake Web3s driven by the spirit of the gold rush.
The user is fooled. Even the developers themselves are fooled.
So are professional analysts who conduct extensive research and produce long reports such as the OECD-OCDE report “Why Decentralized Finance (#DeFi) is Important and Impact on Policy.”A comprehensive theory and analysis of the design and mechanism of these DeFi applications is all about Economic There is no foundation Technical Foundation.
about Economic As a basis, the truth is that the current form of DeFi is based on one simple thing. real (In contrast to theory and analysis): DeFi mortgages do it to “increase”, and borrowers do it to “increase”.
And they all ignore or tolerate ridiculously high transaction fees and lack of guarantees of actual legal ownership and privacy protection of property due to “increasing numbers”.
Moreover, they are unaware that all transactions are speculative transactions for speculation, with little or no based on utility that is independent of the speculation itself.
So there is nothing in the whole Economic The foundation is anything.
about Technical Infrastructure and NFT related issues are also related to DeFi as they are both based on the same foundation and all require transactions that go through the same ecosystem.
More basically, what isn’t based on a secure public blockchain that is inherently scalable in L1 (Layer 1 of the chain) is like a house built on sinking sand. This includes all Ethereum-based applications.
But there is hope.
The real hope of NFTs is in Bitcoin SV
The only answer is a blockchain with unique L1 capabilities that scale and create a truly decentralized public ledger (while allowing customer-selectable encryption for privacy).
The scalability of L1 is important. This is the only effective way to avoid reintroduction by reintroducing intermediaries as needed.
The problem with the L2 solution is fundamental. They are not blockchain.. They just pretend to be blockchain. Starting with blockchain that couldn’t provide a real solution, L2 creates an off-chain solution, but is associated with blockchain by name to ride the market tide created by the blockchain hype. increase.
This does not mean that L2 is, in principle, completely useless. But the truth is that you can hardly think of any L2 applications you need other than high-frequency data or content streaming applications. If you already have a public blockchain that can provide a truly scalable Layer 1 (L1) solution..
L2 is always a compromise. If you don’t understand this, you need to ask a very simple question. Why invent the blockchain in the first place? If L2 is a good solution, existing non-blockchain technologies such as distributed databases are not only just as good, but in fact have all the answers to enjoy a much more mature and established ecosystem. So you don’t need it at all. For blockchain.
Simply put, all the transactions you need or need, atomicOr potentially need to Clearly identified (for example, for accounting or auditing purposes), Must be on the chain. If not, you don’t need blockchain technology in the first place. Placing these types of transactions in L2 is illegal.
And the transactions related to NFTs and DeFi are certainly this type of transaction.
High frequency data or content streaming applications are the only exception that justifies L2 solutions such as payment channels.
(Note that we’re talking about transactions, not the tokens themselves. These are different. L2 tokens with on-chain data, messaging, records, and validation for many enterprise applications have There are powerful cases like this: Tokenized.com does, but it’s a completely different theme.)
From this perspective, we can see how elegant and promising the solutions offered by Bitcoin SV (BSV) are.
The metanet protocol proposed by nChain will be the actual Web3. Kensei currently focuses on enterprise data integrity and auditability and doesn’t use the term Web3, but nChain’s products and services, such as Kensei, form the true foundation of Web3 based on Metanet. To do. Not only more secure enterprise data systems, but also convenient NFT systems with actual legal ownership can be built on Metanet.
Today’s implementation of NFTs lacks real estate ownership management and management. These products exist only for the ignorance and greed of people. Ignorance for not understanding the purchase of NFTs does not mean that the NFT owner has full rights to property ownership, but is greedy for believing that prices will rise soon. please do not worry.
But all these problems also have their roots in the inadequacy of the underlying blockchain. Most blockchains, including Ethereum, have no real ownership, not to mention the possibility of full ownership and control.
All you need is full digital rights management (DRM)
DRM is a familiar concept. Although many existing DRM technologies and systems can be used, BSV blockchain has its own advantages.
BSVs allow NFT (such as artwork) payloads to be viewed or manipulated under predefined conditions such as certain authorized persons or devices. As Craig Wright himself recently pointed out, you can use different compression and reduction techniques to display thumbnails and images at different levels of resolution according to your permissions.
In addition, by combining a single source of truth (SSoT) with secure data services, the BSV blockchain can provide better DRM than traditional methods. In extreme cases, not only the hash, but also the metadata and complete content data (for example, the tokenized high resolution image itself) is stored in the chain, so it is decentralized as well as user access control. Also, the existence (storage) of the file itself, which is the basis of NFT (on-chain storage of content data is an option, not a requirement).
With nChain’s enterprise data solution, the BSV blockchain also guarantees the uniqueness of digital assets, counterfeit protection, reliable availability, traceability, proof of authenticity and cost savings. All of this allows digital rights owners to not only view but also sell their digital assets. , Transfer, Streaming, Licensing, Rental, and Viewing NFTs in a Controlled Way.
And that’s only about NFTs. BSV blockchain supports a wide range of Web3 applications.
Be prepared for the irony:
The only blockchain that focuses on true legal property rights, productivity and practicality happens to be the most hated and the most ignored.
Indeed, it’s still small and is growing fast just as measured by the actual development and adoption of the application. But it’s painfully focused on productivity and practicality.
The total number of transactions per day that’s all About 10 times BTC and 2 times Ethereum. However, over 95% of these transactions are real user applications, not the transactions of the token itself, in contrast to the percentages in other chains being reversed. And their numbers will increase another 10-fold within a year, based on their current trajectory. The Bitcoin SV infrastructure already has the scalability to handle 1000 times the current number and extends horizontally to handle an essentially unlimited number of transactions at a cost of less than a hundredth cent. I can do it.
But just as important, BSV developers are focusing on the actual utilities. It’s a fact. And it’s not only a group of people who tend to value utility more philosophically than coin alchemy, but they suffer from the curse of getting rich and getting rich without proof of work. Because it is not. They do their best and fight for something good. The future is looking at them gently.
Watch: CoinGeek New York Panel, NFT New World
New to Bitcoin? Check out CoinGeek’s Bitcoin for beginners The ultimate resource guide to learn more about sections, Bitcoin (originally conceived by Satoshi Nakamoto) and blockchain.
