
The Promise of Blockchain Is a World Without Middlemen - jrbedard
https://hbr.org/2017/03/the-promise-of-blockchain-is-a-world-without-middlemen
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jepler
I don't see it that way.

Bitcoin "miners" are absolutely middlemen. Right now they take a cut mostly in
the form of the block reward; later it is assumed they will take a cut in the
form of rising transaction fees.

Anytime you have a blockchain that (A) anyone can join, (B) transports or
represents value, and (C) is vulnerable to "51% attacks" the system only works
when there is an equilibrium among the stored or transacted value, the
compensation for miners, and the electricity that they burn doing the mining.
Otherwise, the value that can be extracted with a 51% attack exceeds the cost
of mounting the attack (PLUS the cost of not participating in the blockchain
with that amount of hashrate, which pushes the needle somewhat but doesn't
change the fact that there must exist some equilibrium point)

(last I knew there was not a breakthrough in block chain technology that
protects the blockchain from being rolled back by an attacker who holds over
50% of the hashrate for an extended period of time, and that allows double
spending and other unintended transactions to occur)

It's true that in principle these miners can be anyone---maybe even you---but
the reality is that they are vastly, overwhelmingly ASIC miners running in
places without metered electricity. _They_ are your faceless middlemen,
absolutely 100% by design leaving you without even the meager recourse your
government probably requires you when you feel you're wronged by your banks or
credit card companies.

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gigatexal
Oh glorious day. It can't come soon enough. Imagine buying a new car from the
manufacturer and having all the "paperwork" handled on the block chain.

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alenox
Blockchain will change the world!!! Then his examples are more items at
Walmart and furniture rental. Hahaha

I don't doubt that blockchain has the ability to upend business as usual in
myriad ways, and there are a lot of really exciting projects out there that
have that potential... but the examples this article used definitely don't
live up to the hype of his opening paragraph.

