Bitcoin Forum

How the hell are legacy financial institutions going to implement blockchain technology without a distributed network of miners to secure it? If they do get miners, where is the financial incentive for them to mine?

Any way I look at it, it would be more logical for these unimaginative anachronistic glorified pawn shop operators to just use our blockchain whether side-chained or colored coins or something like that. The Bitcoin blockchain is more powerful than the world's top ten supercomputers combined, even factoring in recent reduced difficulty.

These johnny-come-lately corporate bozos had better come out with an answer, give up or get on board because we're doing it ourselves with or without them and I kinda hope it's without them.  

They'll centralize it.. just look at ripple.

With the ripple network, hyperledger, etc.


/thread

LOL Ripple shows how some people just don't get it. Proprietary systems externalize costs. That's why they are so profitable, but nobody uses them without threats of guns in our faces. We built an entire system on a shoestring budget without resorting to a BB gun's worth of coercion and the best they can counter with is Ripple?  I don't think Ripple Labs is doing any worse than the Fed albeit on a vastly different scale, but the Economic Calculation Problem (google it) doesn't just magically go away because, ya know, computers and stuff.

That is why banks are becoming nice to ripple over BTC because ripple is centralized ... say hi to the new boss , same as the old boss.

Since when have banks been adverse to using the rule of law ("guns in our faces") to externalize cost?  Externalized cost doesn't make the cost go away but it does reduce the effective cost of the one doing the externalization.  Banks are interested in blockchain technology to create a fair, free, open, and transparent network.  They are interested in it because it might reduced the operating cost of some very unfair, centralized, closed, and opaque networks.

I read that the banks turned down a new system that massively improved on the ACH system because they are perfectly happy raking in billions of dollars a year from their current antiquated system. The only reason I can think of for them to upgrade is if there is even more profit in it for them. Why would they shoot themselves in the foot by upgrading to a new better system if they cannot make as much money out of it?

Ripple is never going to achieve relevancy. Debt-based systems have a storied history of going up in flames because the defaults amplify each other making them inherently unstable. Free markets have built in shock absorbers.

OP:

Your thread is confusing.

First, you ask how bankers can implement distributed ledger technology without miners. People tell you that they can do it with the ripple network (or Huperledger and others). The ripple network was built with that purpose in mind, doesn't force anyone to deal with a volatile cryptocurrency, is more scalable and effectively cuts costs (unlike bitcoin, which is not cost efficient at all).



Then you start to ramble about debt-based systems suggesting in some way that bankers are gonna suddenly switch to austrian economics and embrace bitcoin or whatever.


What are you trying to say exactly?

Ripple is just a passing thing like any other sh*tcoin, just more advertised and nicely presented. You loose sence of purpuse with centralisation of any kind, its just not the same.
Banks would ofc. sooner endorse ripple, but its not likely that will happen. Just avoid it, were here to promote freedom of any centralisation, anything else is just wasting time.
cheers

I doubt the same will happen with bitcoin ever,

And thats why BTC will remain the gold of cryptos.

I agree but this world is a debt based system...

More debt is coming.

The world is presently enduring a debt-based system, like a pestilence. The system is unstable and it will end either by fire (hyperinflation) or ice (bank run). There is no other option. I'm betting on fire because those central bankster monkeys have one and only one weapon: [control]P.

Also, Ripple is not easy to use for mainstream consumers. They are not a major player.

Why those sitting on the unfair side of the fence would like to change to way things are? Cartels doesn't work that way.

Are you blind?  This is how:  MtGox, Circle, Coinbase, Xapo, etc. etc.  Bankers in the golden age didn' t create new gold, they stored it and issued IOUs for it. 

Maybe not Ripple directly, but it's the kind of structure bankers might emulate and create a friendly interface on top.

Well I could actually see them implement a centralized Blockchain solution. Maybe they're also looking for new ways to clear regular money transactions. Unfortunately this effectively is negating the actual reason there's a Blockchain to begin with...

Haha nice one. I don't understand why most people haven't see or realize the truth. It's the same old system packaged under different name and to make it sound like it's bitcoin.

I agree once again on this thread that hyperinflation will be the only way out.

However, the "smart money" that caused this future hyperinflation will have their money somewhere else well before and make money during the meltdown while people starve.

Poe's Law is strong ITT

Tech is important but ultimately what matters is how a currency is used or how often it is used.  There are so many digital forms of currency that have nothing to do with crypto and they are actually very powerful.  Money is changing a lot right now.  It's a very exciting time to be alive.