Bryan Daugherty, Global Public Policy Director for the BSV Blockchain Association, has written a new ebook explaining the fallacies of private and permissioned blockchains.
The e-book is free and available here. In it, Daugherty addresses some myths about public blockchains, explains why they are more secure than private permissioned blockchains, and explains the original blockchain released by Dr. Craig Wright in 2009. We paint the big picture on why Bitcoin needs to go back to his protocol.
Below is a sneak peek at what Daugherty covers in the ebook.
The complex problem of the Internet walled garden
It’s easy to make simple things complex, but it’s very hard to make complex things simple. A person who can simplify a complex is a special person. – Chanakya
Daugherty first describes how, when the usefulness of the Internet began to emerge (post-bubble), governments and corporations went online and built systems that focused on themselves and individual entities.
This complex web of services and utilities was incompatible with other services. This architecture is wrong, and it has become more obvious as the volume and nature of Internet exchanges have increased. A new platform has emerged to make things simpler.
Building huge walled gardens (so that they don’t have to interact with other applications) creates huge monopolies, giving these companies almost unbridled power.
A Simple Solution: A Native Digital Cash System for the Internet
A native digital cash system for the Internet that Bitcoin was designed for is the solution to the many problems created by the web of this complex system. cash system.
By its design, Bitcoin allows for real-time accounting, micropayments, and very low fees that decrease as the system scales.
However, Bitcoin is so widely misunderstood that many governments and companies have chosen to create permissioned blockchains where only authorized participants can access the ledger.
Bitcoin security depends on public ledger
Daugherty explains how the decision to use a permissioned blockchain comes at the expense of security and unnecessary complexity.
Ironically, he explains, the best security model is to expose everything. This does not mean exposing sensitive data to the public his blockchain, but rather putting the signature, hash and index of the data on-chain. They are immutable, and if someone tampered with them, they would be visible to everyone.
The Reality of Permissioned Blockchain for Business and Government
What is the reality of permissioned blockchains? Basically they are the same as the current setup. Data is stored and operable by the same governing entity, multiple ledgers or sets of ledgers can run in parallel, and the entity must trust the codebase of a permissioned blockchain.
This eliminates the very elements that make Bitcoin secure: transparency and accountability, a fixed set of rules, and exposure of immutable information on a public ledger.
Finding Truth Via Public Blockchain
Daugherty also explains the truth behind Bitcoin’s existence. “This is what Bitcoin was created for,” he wrote. Once the truth is recorded, everyone can build on it.
Bitcoin also eliminates the need for intermediaries, as Satoshi Nakamoto said at the time. Currently, he who conducts transactions requires an intermediary because the two parties do not trust each other, but with Bitcoin, transactions can be conducted on a true public ledger. This benefits everyone as most corruption comes from middlemen.
Permissioned blockchains are a step towards trusting third parties and intermediaries. Governments and businesses that don’t understand this are overlooking some key aspects of why blockchain works.
For more information on these issues, download the full ebook by Bryan Daugherty of the BSV Blockchain Association at this link.
Watch: BSV Blockchain: A World of Goodness
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