Post
Topic
Board Bitcoin Discussion
Re: Which should we work on as the unsolved problems in cryptocurrency and why?
by
franky1
on 09/11/2023, 18:38:58 UTC
Which should we work on as the unsolved problems in cryptocurrency and why?
Scalability - Increasing transaction processing capacity and speeds on blockchains to support wider adoption. Issues around block size limits, transition to proof-of-stake, sharding, layer 2 solutions.

main blockchains need to evolve with the need of the community not pander to the investments of corporate sponsors who want to send a blockchain down a bad path.

as for the current subnetworks, offerings fail to meet expectations and promises given many years ago. those teams admit their faults in meeting but still promote that people should use their failed attempts with caution. particular subnetworks can be fixed because the bug/flaw is part of their main mechanism. they need to learn from these mistakes and devote their time to start afresh on a new model/mechanism without the flaw


Privac
y - Enhancing privacy protections for users on public blockchains while meeting regulations. Zero knowledge proofs, confidential transactions, mixers/tumblers.

this requires reading anti-privacy regulations.. if regulations mention the words "mixers" then stop friggen promoting services called "mixers". create new services that do not do functions described in regulations but do give the user the end result the want... its how uber bypassed taxi-cab regulations by not calling themselves a taxi service
think smarter, learn regulations, learn what the regulations dont say and make services of the unsaid details


Security
- Preventing hacking attacks, thefts, fraud on blockchains themselves as adoption increases. Consensus protocols, key management, formal verification.

Governance - Determining the best mechanisms for protocol upgrades, conflict resolution, user representation for decentralized networks. On-chain voting, off-chain coordination.

allowing certain devs to add any data to blockchains via a opcode trick is a trojan backdoor. these opcodes should only use a "isvalid" bypass if the block version is higher version then the block ruleset the node knows about. this means the nodes set with the latest versions rule nowledge only use opcodes that have content expectations.
this means "isvalid" is not abused and also ensures node readiness before a block version change. ensuring there are enough nodes toactually validate new data.


Regulation
- Clarifying how cryptocurrencies fit into existing regulatory frameworks around securities, commodities, payments. KYC/AML compliance for exchanges.

bitcoin 2009-2013 was private property designation.. meaning no regulations. but when "main-steaming" lobbying happened to get it recognised as legal currency.. monetary regulations then applied.
things then changed where the subcategory of currency (asset vs commodity) is another paper chase of lobbying trying to define it.. and the simple answer is.. it depends how its treated..
EG if a person self-custody the coin its an asset.
EG if the coin is custodianised by a market and used as a raw material to create other products like ETF shares, its a commodity
EG if the coin is custodianised by a market and used as swap 1:1 value its a asset

much like how the dollar is treated differently for tax purposes depending if grandma put it in a birthday card, or an employer wage packet or into a pensions pot

Volatility - Reducing price swings to be more usable as currency/payments. Stablecoins, reserve-backed currencies, tokenomics.

the window of speculation is wide if international users get access.. one purchase of something worth $35k means a couple thousand min wage hours for one person in one country(1.1year salary) vs 100 years salary for a third world countryman.. so the window of speculation will always be wild and volatile.. unless 2 things
a. we stop pegging value to one fiat denomination
b. we use "hours" as the unit of comparison. this will fairly allow international users to buy at fair local rate. but obviously will cause the FIAT forex market to become volatile whilst countries sway FIATS from first to third world to arbitrage this unit rate... so stabalising the crypto market but putting FIAT forex into volatility

Energy - Developing sustainable alternatives to energy-intensive proof-of-work mining ascriticism rises. Proof-of-stake, off-chain computing.

there needs to be a cost component for mining. its part of the security. and it sets the base valuebelow market rate to be non-zero
if a coin is pure PoS with no large cost then most of the market is 99.95% pumped by pure speculation with no underlying value to support it, no way to prevent it going to zero.
find a provable way that cannot be gamed but notable free running of software, you will have your solution, but real world energy is the best so far when it comes to PoW.. because work requires energy and energy has a cost

Usability - Improving user experiences and interfaces for transacting and managing assets and wallets. Simplified addresses, fiat on-ramps.


this is not a base protocol thing. anyone can teak the GUI without offending the network, so anyone can make more presentable user interface experiences.

Interoperability [/b]- Allowing inter-blockchain communication and exchange of value. Cross-chain protocols, atomic swaps, blockchain bridges.

this again is the subnetworks problem. a better subnetwork is needed to meet the promises sold to the community years ago