Merkel Trees are fine, and are how things like “Git” keep track of different files (and how distributed hash tables and file-sharing often work).

Merkel Trees are trees-of-hashes, which the cryptocoin world wants us to believe go by the new name of ‘Blockchain’, but people familiar with comp. sci history know that they’re just flailing about making shit up.

Blockchain is an application of Merkel Trees. Merkel Trees have lots of good uses, but Blockchain doesn’t seem to have much use after 10+ years of experimentation.

I thought it sounded interesting when it was new but the more I’ve learned, the more convinced I am that it’s completely useless. I’ve never seen anything done on a blockchain that couldn’t be done faster, cheaper, and more securely in a SQL database. Even the not-a-scam applications are ridiculous and fall apart upon examination. Blockchain as a definitive record of ownership? Absolutely not. There’s no way to force a person to update a record. Lose your house in a bankruptcy? The sheriff on his way to evict you isn’t going to care that you’ve got some NFT saying you still own the house. Anything involving contracts at all? If a court can’t unilaterally update the blockchain record, then the record is unreliable. But if the government can unilaterally update a record, then you’re not relying on community consensus and immutability in the first place.

Blockchain isn’t useful for anything important, and it’s not a logical choice for anything trivial aside from literally just playing with blockchain stuff for the sake of playing with blockchains. I think it’s a dead-end technology.

I find it to be an interesting solution looking for a problem. There could be many applications but I’ve yet to see one that blockchain could solve better than anything else that we already have, outside of crypto currencies.

Web3 is an interesting thought experiment but I don’t see how it would work in real life. It would be extremely slow, data loss would be a daily occurrence and it would be a privacy/security nightmare.

Blockchain (simplified) is a giant excel spreadsheet that you can never edit, only add to. I struggle to think of any applications that is a benefit for, and even then append only databases would already do it better.

One of the benefits is supposed to be decentralization, but people tout that as a benefit for things like house deeds, or identification, or whatever. Imagine how massive an append only excel file of every house with every owner change etc etc included in it would be. Then we once again only have the people who can afford to store that much data storing it, and we are back to where we are now.

It doesn’t really solve any problems, it just is a worse version of what already exists.

The “blockchain” I use on a daily basis is git, where the sha of the previous commit affects the next.

So Google, Amazon, Apple, and many other large companies in the IoT space are using a blockchain as a federated data store: https://github.com/zigbee-alliance/distributed-compliance-ledger

It stores the data needed for Matter [ https://en.m.wikipedia.org/wiki/Matter_(standard) ] device attestation.

I think its an interesting use case on how entities that don’t particularly trust each other can operate a federated system. Accounts are linked to an identity out-of-band in order to have write permissions to the chain. When an account writes, all the readers of the chain have reasonable assurances of the author of that write. No company can inject false state as another company without that company’s guarded private key. All transactions are also auditable as an additional assurance the data isn’t undergoing a malicious act.

tl;dr; interesting use cases for tamper proof federated ledgers.

IMHO technically speaking the concpt of a Blockchain and decentralized zero trust computing like in Ethereum are indeed “interesting” as concepts.

But in practice there are a ton of issues with current implementations and it’s likely not going to be used on a large scale because zero-trust doesn’t scale well.

As we see here on the Fediverse, decentralization works fine without monetization using an actively anti-scaling append only database that emits the pollution of a medium sized country.

The only other good thing that came out of it is it increased the prevalence of digital payment system in the world, but I struggle to think of anything that would actually directly benefit from blockchain.

My principle of “blockchain’s fundamental value” is simply this: A blockchain that secures valuable information is valuable.

To break that down further:

• “Valuable information” isn’t data - it’s something that you can interpret, that has meaning and power to affect your actions. So, price speculation taking place on a chain isn’t that valuable in a broad, utilitarian sense, but something like encyclopedic knowledge, historical records, and the like might be. The sense of “this is real” vs “this is Monopoly money” is related to the information quality.
• “Secures” means that we have some idea of where the information came from, who can access it, and whether it’s been altered or tampered. Most blockchains follow the Bitcoin model and are fully public ledgers, storing everything - and just within that model(leaving aside Monero etc.) there are positive applications, but “automatically secure” is all dependent on what application you’re aiming for.

You don’t need to include tokens, trading, finance, or the specific method of security, to arrive at this idea of what a blockchain does, but having them involved addresses - though maybe without concretely solving - the question of paying upkeep costs, a problem that has always dogged open, distributed projects in the past. If the whole chain becomes more valuable because one person contributes something to it, then you have a positive feedback loop in which a culture of remixing and tipping is good. It tends to get undercut by “what if I made scam tokens and bribed an exchange to list them”, the maxi- “we will rule the world” cultures of Bitcoin and Ethereum, or the cynical “VC-backed corporate blockchains”, but the public alt chains that are a bit out of the spotlight with longer histories, stuff like Tezos and NEM/Symbol, tend to have a more visible sense of purpose in this direction - they need to make a myth about themselves, and the myth turns into information by chance and persistence.

What tends to break people’s brains - both the maxis, and people who are rabidly anti-crypto - is that securing on-chain value in this way also isn’t a case of “public” vs “private” goods. It’s more akin to “commons” vs “enclosed” spaces, which is an older notion that hasn’t been felt in our political lives in centuries, because the partnership of nation-states and capital has been so strong as a societal coordinating force - the state says where the capital should go, the people that follow that lead and build out an empire get rewarded. The commons is, in essence, the voice in the back of your mind asking, “Why are you in the rat race? Do you really need an empire?” And this technology is stating that, clearly and patiently: making a common space better is another way to live.

And so there is a huge amount of spam around “ownership”, but ownership itself isn’t really a factor. That’s just another kind of information that the technology is geared towards storing. The social contract is more along the lines that if you are doing good for a chain and taking few risks, a modest, livable amount of credit is likely to flow to you in time. Everyone making “plays” and getting burned is trying to gamble with it, or to advance empire-building goals in a basically hostile environment that will patch you out of the flow of information.

The value is in the forward signed, immutable ledger written by neutral consensus. This can take a lot of form and be the backbone of many types of applications (and already is used by large firms), the current market for direct public ledgers is a mess and I don’t generally agree with much of the last craze beyond the fundamentals needed to manage transfers, ownership and executions. The applications that will use these kinds of networks haven’t really been built yet.

I’ve heard of a couple interesting applications (interesting doesn’t necessarily mean good)

1. I’ve been out of the industry for a couple years, but at the time I left both the US’s NAR and CA’s CREA were looking to create blockchains that would eventually hold an immutable history of every salable property in North America. The sales pitch is that no one will ever be able to hide things like flood damage or zoning changes if they’re all those events are in a trusted database. Carfax, but for buildings.

2. Several US states with legalized Marijuana have what are known as Seed To Sale laws. One company was trying to move into this space and eventually into all of agriculture. The idea being that if you buy pot, scanning a QR code would tell you what clone# the seeds were from, where and when it was planted, what pesticides/herbicides were used on/near it, when it was harvested, any tests it had gone through, etc.

zero knowledge proofs, like those being deployed on blockchains recently, have the potential to be the killer app for this tech. Imagine you want a library card which requires proof of residence. With a zero-proof identity system, you could get your library card without revealing any personal info, like your name or address. Your wallets would simply prove to the library that you are a resident as credentialed by some local/state authority.

This also could have profound implications for the web like universal logins to web services, online privacy while still providing attribution, ownership and rights to digital content, copyright, etc.

So the actual tech behind could lead to some interesting ways to utilize it, but it’s admittedly squandered on cryptocurrencies and shitty NFT “art”.

Like, you could probably get rid of identity theft being an issue if you had unique tokens that would have your personal info like your legal name, birthdate, SSN, etc to ensure that it’s you and not somebody pretending to be you. Instead of entering in this info, you could just share the necessary tokens with the other party - so if a bank needed your info, for example, you could just give them the tokens containing the different info they need into their wallet. No idea how feasible that would be, but I do think there’s more actually creative and useful ways to utilize the blockchain tech versus just relegating it to shitcoins and ape art.

Asset Tokenization and Smart Contracts are two things that will be increasingly used in Finance. That is why the recent BIS report on CBDCs included both of those as essential features of a Central Bank Digital Currency.

What Blockchain does is provide these features of a digital currency in a way that doesn’t require a trusted intermediary. This makes Blockchains resistant to censorship in a way that a central bank digital currency can never truly guarantee. It is true that a centralization system like a database or ledger can be faster, more efficient and more secure but that you will always have to trust that provider of that service that they will continue operating in a manner that is congruent with what a user may want.

A recent example of this would be the news that Ubisoft is deleting inactive accounts on Uplay, which is potentially resulting in many users losing access to games they bought on that platform. Were the rights to those game tokenized on a Blockchain or CBDC, the users could potentially redeem that on another platform. Another example would be the case of the user losing his 900 hour character in Red Dead Redemption after Google shutdown stadia. Had that player’s character been tokenized as an NFT he might have the capacity to move it off of stadia and onto another game platform.

Get a little nervous about your Steam Game collection worth 1000s of dollars that is completely locked into Valve’s ecosystem? How about a decentralised, immutable and censorship-resistant record of your ownership of those games? That is what asset tokenization is about and it will become more important in the future as our lives and our assets become more digital.

Then there are multitude of uses for smart contracts which, again, don’t require a blockchain provided you are ok with relying on a trusted intermediary to execute the contract as it was termed. Given that contracts by their nature often involve agreement between organisations or individuals with diverging interests, it almost a certainty that having an immutable, censorship resistant network to run those smart contracts is desirable.

If you take a longer historical view, there have long been strong opinions about how we should base our currency. Because money impacts us all so viscerally, even the most uninformed develop deep seated emotional stances about very obscure topics.

https://en.wikipedia.org/wiki/Cross_of_Gold_speech

This link is an example of a historical moment where a stance taken against the gold standard was influential in national elections in the US.

The people who would have been emotionally exercised about bimetalism are probably the same people who we call crypto-bros today.

In all, the furor over blockchain, especially currency and NFT, has yielded heat but no light. Where’s the killer application? It never takes this long for a truly useful technology to find that killer app, not in today’s technology environment. Maybe it just isn’t that useful and people should calm down?