[HN Gopher] In Response to My first impressions of Web3
       ___________________________________________________________________
        
       In Response to My first impressions of Web3
        
       Author : bbno4
       Score  : 198 points
       Date   : 2022-01-08 10:12 UTC (12 hours ago)
        
 (HTM) web link (skerritt.blog)
 (TXT) w3m dump (skerritt.blog)
        
       | chrisco255 wrote:
       | > Illegal images being sent to your wallet, forcing you to go to
       | prison in some places.
       | 
       | Images are not stored in a wallet. NFTs and ERC20s do not
       | actually live in a Ethereum wallet. They live in a smart
       | contract. And that smart contract has a ledger of account for who
       | has the right to transfer that particular asset.
       | 
       | The images themselves, unless they are SVGs, are typically stored
       | on Filecoin or Arweave or a centralized server and marked by an
       | IPFS hash.
       | 
       | Content moderation is handled by the data storers in those
       | networks: https://www.arweave.org/technology#content-moderation
       | 
       | Spam NFTs are just like spam email. The receipt of something
       | illicit or illegal does not mean automatic imprisonment anywhere
       | that I'm aware of. If you live in such a jurisdiction, I suggest
       | you flee immediately.
        
       | soheil wrote:
       | > This is a lie. Most NFTs which sell for millions use IPFS,
       | Arweave, Filecoin or others for decentralised storage of data. A
       | lot of NFTs do use Google Drive or Imgur or whatever.
       | 
       | This is such a he said she said. Can we get some stats on this?
       | Are NFTs primarily stored on the chain or linked to a URL? I'd
       | like to see the breakdown by platform, Opensea, etc.
        
       | ra-mos wrote:
       | "proposed solutions solve this"
       | 
       | ~ every cryptocurrency/blockchain/web3 article ever written
        
         | vitaflo wrote:
         | Yeah it's starting to sound a lot like "this is the year of
         | Linux on the desktop" to me. We're always one year away.
        
         | dylkil wrote:
         | slowly but surely things improve, and then people find
         | something else to complain about
        
         | wepple wrote:
         | This is the TL;DR for me. Perhaps a lot of this will evolve and
         | we'll end up with some fantastic technologies that are truly
         | revolutionary.
         | 
         | But, a lot of us are pretty jaded by "blockchain is a game
         | changer" with no tangible evidence beyond BTC as a highly
         | unstable store of value and claims of some great future state.
        
           | bombcar wrote:
           | Either it will solve something and you can get on later, or
           | if you have to get on now "before it goes up" it's just a
           | scam (or"investment") of sorts.
        
           | fivea wrote:
           | > (...) beyond BTC as a highly unstable store of value and
           | claims of some great future state.
           | 
           | Bitcoin is not a store of value, and never was. A highly
           | volatile asset, specially one whose market price halves
           | overnight without much surprise, does not serve the purpose
           | of a store of value.
           | 
           | I mean, this week alone Bitcoin dropped around 10%, and
           | around 25% during the past month. This is not value being
           | stored. If an asset manager lost 25% of it's wallet in a
           | month they'd be out of a job.
        
       | svilen_dobrev wrote:
       | Take the money out of equation, and i'm all for it. Which is what
       | Moxie is suggesting, more or less..
       | 
       | Sadly it's all about money re/distribution, even if all try to
       | dress it in all kind of masks on top..
       | 
       | With a wallet substituting my Identity (or trust, or whatever
       | else that is not money).. it's no different to any other
       | substitution - email, belonging to a club (FAANG+oauth),
       | whatever. Except more involving..
        
       | knorker wrote:
       | Standard blockchain apologist. Always jam tomorrow, never jam
       | today.
       | 
       | It's always "early" for some definition of the word "it". Any
       | decade now we'll have PoS, or an actual use case for smart
       | contracts, or NFTs etc.
       | 
       | But no, every year just seems to bring a new "invention" that is
       | "still early" while implying that this, unlike every single other
       | use of distributed blockchain, somehow is the first of all of
       | them to not be pointless (outside of a way to find the bigger
       | fool).
       | 
       | Blockchains are just scam generators.
       | 
       | Well, they are of great utility to ransomware, so i guess they
       | have found one use case in over a decade.
       | 
       | Edit: and of course this rebuttal found like one possible mistake
       | in statistics and calls it a "lie". That should tell you all you
       | need to know about the author's intellectual honesty.
        
         | eqmvii wrote:
         | Hey now, ransomeware /and/ drugs!
        
           | floatboth wrote:
           | And both are now eclipsed by the wild speculation. The vast
           | majority of buttcoins' "usage" is all about "number go up".
        
             | srqwe wrote:
        
             | BeFlatXIII wrote:
             | How financial markets should be.
        
               | sobkas wrote:
               | > How financial markets should be.
               | 
               | Until the bubble pops, then better not be one holding the
               | bucket.
        
           | outside1234 wrote:
           | Don't forget money laundering with NFTS and bribing
           | politicians
        
         | kristofferR wrote:
        
           | knorker wrote:
           | > if you were intellectually honest you would agree that the
           | decentralized web/crypto both have positives and negatives.
           | 
           | If this were 2010 then I would agree that it's interesting
           | technology with some possible use cases not yet clarified.
           | 
           | But this is 2022, and it's now time to turn this around to
           | focus on actual solution first, get-rich-quick as a possible
           | incidental side effect. Because we've had over a decade now
           | of get-rich-quick first, "maybe solve a real problem, not
           | sure how because I've not talked to domain experts to find
           | out what the real problems actually are" as incidental.
           | 
           | Like, talk to any contract lawyer and ask them if "smart
           | contract" is a solution to any of their hard problems. It's
           | not. It just makes everything much worse.
           | 
           | Or currencies. You can't just (at best) say you'll bolt on
           | AML/KYC to your perfectly anonymous currency "later". And
           | without AML/KYC it's not actually a solution that anybody
           | wants (except very rare anarcho-libertarians and ransomware
           | people).
           | 
           | So does this whole space have positives? It's not impossible.
           | Every single so-called solution in this space has made its
           | intended space worse, and also created huge externalities
           | (environment, e-waste (old mining rigs), resource shortages
           | (GPU, SSD), etc...).
           | 
           | But it's not impossible that any decade now something will
           | actually be a solution. But because the "solutions" are also
           | get-rich-quick schemes, the "inventors" don't want to wait
           | for the solution to actually be... a solution. Launch now,
           | get rich, problem (of not being rich) solved.
           | 
           | Take PoS for example. Greta Thunberg is wrong to attack
           | boomers. Looking at the age bracket of cryptocurrency
           | supporters it seems that millennials are also pushing that
           | whole "environment" thing to future generations. "Oh, it'll
           | be fine with PoS eventually. But today we can burn the
           | environment a bit because I gots to get paid".
           | 
           | So no, it doesn't "have" positives. It's one of the
           | infinitely many pools of ideas where positives could come
           | from, but haven't yet.
        
             | kristofferR wrote:
             | Silk Road is the easiest example of a positive to mention.
             | 
             | And you know very well that the Kintsugi testnet is public,
             | to falsely pretend it's decades away is shitposting.
        
         | fleddr wrote:
         | Well, the author at least makes an intellectual attempt, unlike
         | you.
         | 
         | Both the original article and the response are reasonable,
         | which is rare in this discussion. There's actual substance,
         | rather than lazy binary conclusions.
        
           | knorker wrote:
           | I did call out the major flaw in the response (always jam
           | tomorrow, never jam today) and elaborated on it, with
           | examples or other technologies.
           | 
           | At no point did I say "this is a lie".
           | 
           | You can disagree with my factual rebuttal of the response,
           | but you are also factually incorrect that I was doing some
           | sort of shitposting.
        
             | fleddr wrote:
             | It's cute that you call your own response "factual"
             | 
             | "Any decade now we will have PoS" Almost every blockchain
             | already is. Ether will move to PoS within the coming 2
             | years. They must, as competition is fierce and may become
             | irrelevant if they don't. Bitcoin will never move to PoS.
             | So, "any decade"...what does it factually refer to?
             | 
             | Your remark on use cases is equally primitive. There's a
             | few hundred million people using crypto. You can say that
             | the existing use cases aren't for you, but that's not
             | factual. Facts are that user growth is exponential.
             | 
             | Singling out ransomware is equally lazy. A recent study
             | showed that the portion of criminal activity in the crypto
             | space is lower compared to cash. Yet you'd never comment on
             | cash being a criminal invention, would you? Yet you're the
             | "intellectually honest" one.
        
               | knorker wrote:
               | > "Any decade now we will have PoS" Almost every
               | blockchain already is.
               | 
               | You know that's not relevant. Nobody cares about the
               | number of blockchains having one or another attribute. I
               | could create and launch a billion new ones, and it
               | doesn't matter.
               | 
               | > Ether will move to PoS within the coming 2 years.
               | 
               | I truly hope so. I'll believe it when I see it.
               | 
               | > There's a few hundred million people using crypto.
               | 
               | Estimate I found is one, not a few. But that could be
               | wrong.
               | 
               | But yeah. I know of several people who tried, some
               | successfully, to get paid in bitcoin. They didn't want to
               | pay taxes.
               | 
               | Everyone wants everyone _else_ to pay their fair share.
               | You can 't point to someone saying "Well I don't want to
               | pay _my_ fair share " as a contradiction, because that's
               | a completely different statement.
               | 
               | Everyone wants only sober people on the street, but come
               | on, it's me and I only had three beers and it's like a
               | 10min drive.
               | 
               | > Singling out ransomware is equally lazy.
               | 
               | Lazy because it's not hard. "Pointing out murder is
               | wrong, is lazy". Uh... so what?
               | 
               | > A recent study showed that the portion of criminal
               | activity in the crypto space is lower compared to cash.
               | 
               | Speculation is by far the biggest, yes. Studies have
               | shown that much or most of that speculation is market
               | manipulation, too.
               | 
               | > Yet you'd never comment on cash being a criminal
               | invention, would you?
               | 
               | I didn't say that about blockchain either. I said it's a
               | scam generator. Cryptocurrencies are more like the scam
               | of being paid in company credits in the company store, if
               | you want to make comparisons to cash. It's not a great
               | comparison, of course, because your whole question
               | assumes that "cryptocurrencies are just like cash" which
               | they are very much not.
               | 
               | Partly because what I already said. But partly... well I
               | don't think you're interested in hearing anything
               | anything, so what's the point?
               | 
               | If you've gotten this far, and are this invested, then
               | you'd need to get over the cognitive dissonance of that,
               | and a HN comment won't help.
               | 
               | > you're the "intellectually honest" one.
               | 
               | Yup.
        
               | fleddr wrote:
               | You are too random to waste any more time on.
        
               | knorker wrote:
               | Sure. Other people get it though (compare comment
               | scores). So I think it's you.
        
               | kortilla wrote:
               | > Ether will move to PoS within the coming 2 years.
               | 
               | Did you mean to agree with the poster? Because you just
               | perfectly proved how even ether has kicked the can down
               | the road to avoid upsetting the apple cart.
        
               | fleddr wrote:
               | I was responding to the hyperbole of calling it "the next
               | decade". It's an extreme exaggeration, just like it's an
               | extreme exaggeration to say that crypto's only use case
               | is ransomware.
        
         | dlubarov wrote:
         | Why are critics so focused on timing though? Does it really
         | matter whether the Eth2 merge happens in 6 months or 12 months,
         | as long as steady progress is being made?
         | 
         | Granted, early timelines from Vitalik and others were way off
         | base initially. The planning fallacy is a thing, and we
         | shouldn't expect a 21 year old to accurately predict the timing
         | of a very complex network migration. Hanlon's razor suggests
         | that bad estimates are usually just bad estimates, not some
         | kind of scam.
        
           | giantrobot wrote:
           | Because in the meantime the Ethereum network has less
           | computing power than a Raspberry Pi while consuming several
           | orders of magnitude more electricity. So it's shitty,
           | expensive, and horribly polluting.
        
         | [deleted]
        
         | gooseus wrote:
         | This is a grift as old as time, promise salvation tomorrow to
         | all those that worship today. Tomorrow is only ever a day away,
         | and really isn't the worship and community great anyways?
         | 
         | The doomsday cult and spiritual guru model of community-
         | building fits right into the Silicon Valley culture of techno-
         | optimism alongside the "if you believe it, you can achieve it"
         | New Age mantras and "fake it till you make it, it's not fraud
         | if you believe it" naivete.
         | 
         | The only thing more upsetting that watching it happen is
         | knowing how it will likely unravel, with everyone pointing
         | fingers and rushing to find a conspiracy theory to explain why
         | "the powers that be" targeted them for destruction because they
         | were so threatened and were afraid of the power they were
         | losing to the Bored Ape movement, or whatever it is.
        
         | serverholic wrote:
         | You could say similar things about nuclear fusion. It's easy to
         | say this when you don't actually follow the technology and the
         | people actually building it.
        
           | oblio wrote:
           | 1. Nuclear fusion has a much more solid theoretical base.
           | 
           | 2. Bud, if we go tell every cryptocurrency enthusiast that
           | they'll be allowed to invest in it now and get a return on
           | investment in 80+ years[1], crypto will be dead within 24
           | hours.
           | 
           | [1] The first experimental fusion reactor was tested in 1958
           | and at the rate they're going, 2038 seems like a reasonable
           | date for the first commercial fusion reactor.
        
           | knorker wrote:
           | It's an interesting comparison.
           | 
           | I mean the easy reply is no: Fusion is not a solution in
           | search of a problem. It has a precise defined desired output,
           | and the engineering is being worked on to achieve that
           | output.
           | 
           | (E.g.) NFT don't. Smart contracts don't. Even
           | cryptocurrencies don't. If you precisely define what you want
           | from a cryptocurrency, then you'll either end up with
           | something that's better solved centralized (to a larger or
           | lesser degree, but at least control), or you'll end up with
           | something that nobody actually wants.
           | 
           | And if you launch today with something nobody actually wants,
           | then you get rich. So who cares if eventually it solves a
           | problem? And there's no incentive to make that happen.
           | 
           | The main difference is that blockchains are being launched
           | before any thought has been put into what problems they
           | solve. Because the money is made on the speculation. Solving
           | the problem is incidental.
           | 
           | Sure, you could be super cynical and say that fusion, or
           | indeed every single company in the world, is only there to
           | make money, primarily. But they do that by solving (or trying
           | to solve) actual problems.
           | 
           | Again on cryptocurrencies: Why do you think I'll have a hard
           | time walking into a bank with duffle bags full of cash?
           | Really think about that question. Really think about the
           | hundreds of years of thought that has gone into it.
           | 
           | Do you think the main problem these generations of people
           | were trying to solve was "intransigent bankers"? Do you think
           | the bank doesn't "like" you as a customer if you walk in with
           | duffle bags full of cash without explanation, and that's why
           | it has rules and takes time, and you have to explain
           | yourself?
           | 
           | Now cryptocurrencies just treat that as "that's stupid, let's
           | remove all that".
           | 
           | Let's say a thief stole your TV. They catch the thief, and a
           | court orders them to repay you. They have the money. They say
           | no. Obviously you want a court order to be able to take their
           | money.
           | 
           | A friend of mine was sexually attacked by a guy. The guy was
           | convicted and ordered to pay a fine. He refused. The court
           | ordered his safe deposit box opened, and they took the money.
           | 
           | And that's a good thing.
           | 
           | > when you don't actually follow the technology
           | 
           | The technology doesn't matter, if problems are misidentified.
        
             | kristofferR wrote:
             | Once you realize that "you" doesn't equal everyone else,
             | you'll stop acting like that.
             | 
             | Plenty of people want and use what crypto already offers.
             | Moneygram was a horrible experience for me, for example,
             | I'm really glad my language school accepting crypto
             | payments.
        
               | knorker wrote:
               | > Plenty of people want and use what crypto already
               | offers.
               | 
               | You're saying a statistically significant number of
               | people want all three branches of government to be
               | completely stripped of any power? No criminal or civil
               | courts?
               | 
               | I think that's ridiculous on its face.
        
               | kristofferR wrote:
               | Please get off your privileged high horse; most people
               | aren't living in proper democracies, unfortunately.
        
               | dmitriid wrote:
               | The absolute vast majority of people in the world live in
               | countries with functioning governments.
               | 
               | Whether or not they are "proper democracies" is really
               | beside the point because no one can define a "proper
               | democracy" (US and Sweden are different as night and day
               | and yet both are democracies, for example).
               | 
               | And crypto makes non-functioning governments
               | significantly _worse_. Good luck proving the NFT on your
               | house proves you 're an owner in a dysfunctional
               | government.
        
               | kortilla wrote:
               | If you're living in a dysfunctional government then at
               | least crypto protects you from random seizures/freezing
               | of your assets.
               | 
               | > The absolute vast majority of people in the world live
               | in countries with functioning governments.
               | 
               | The underlying statement you are making bere is that we
               | shouldn't be building technology that helps people
               | undermine their governments' ability to control their
               | citizens' assets.
               | 
               | That's the crux of the argument here. If you live in a
               | government where things generally work for you, this
               | technology is threatening. If you don't, it's a possible
               | path to some semblance of autonomy.
        
               | gizmo385 wrote:
               | > If you're living in a dysfunctional government then at
               | least crypto protects you from random seizures/freezing
               | of your assets.
               | 
               | How so? We've already seen large scale shutdowns of
               | crypto projects by centralized authorities like OpenSea.
               | I highly doubt dysfunctional and authoritarian
               | governments are going to swallow allowing their citizens
               | to use these platforms without also ensuring that they
               | have a measure of control over it. And if an
               | authoritarian government wants to steal your assets,
               | they'll just install malware on your device and take your
               | keys, then you've lost everything. Or they'll just
               | disappear you until you agree to hand things over.
        
               | dmitriid wrote:
               | > If you're living in a dysfunctional government
               | 
               | 1. There are very few such governments on earth, all
               | things considered
               | 
               | 2. You still need to somehow convert those "assets" into,
               | you know, actual food, and clothing, and... In a truly
               | dysfunctional government rubber-hose cryptanalysis is a
               | thing that exists: https://en.wikipedia.org/wiki/Rubber-
               | hose_cryptanalysis
               | 
               | > The underlying statement you are making bere is that we
               | shouldn't be building technology that helps people
               | undermine their governments' ability to control their
               | citizens' assets.
               | 
               | No. The underlying statement is: you're building
               | something that doesn't work the way it's advertised.
               | 
               | > That's the crux of the argument here.
               | 
               | Well, if you invent arguments, pretend your opponent said
               | those argumetns, and then bravely fight those arguments,
               | then surely, that's the crux.
               | 
               | So. Back to my original statement: "Crypto makes non-
               | functioning governments significantly worse. Good luck
               | proving the NFT on your house proves you're an owner in a
               | dysfunctional government." It's an objective fact that
               | doesn't rely on your imagining of what a dysfunctional
               | government is.
        
               | mthoms wrote:
               | >There are very few such governments on earth, all things
               | considered
               | 
               | I'm not going to wade into any of the crypto arguments
               | here but your repeated downplaying of
               | dysfunctional/authoritarian/corrupt/failing governments
               | seems entirely disconnected with the reality that tens,
               | perhaps hundreds[0], of millions of people live every
               | day.
               | 
               | Just because true democracy is a hard thing to define
               | (per your previous comment), doesn't make oppressive
               | governments any less oppressive.
               | 
               | There are lots of valid complaints about Crypto and
               | NFT's, but the argument that poor government is not
               | _that_ bad of a global problem  "all things considered"
               | is an absolutely _terrible_ one.
               | 
               | https://en.wikipedia.org/wiki/Index_of_Economic_Freedom
               | and https://www.fraserinstitute.org/studies/economic-
               | freedom-of-...
        
               | dmitriid wrote:
               | > but your repeated downplaying of
               | dysfunctional/authoritarian/corrupt/failing governments
               | seems entirely disconnected
               | 
               | Again: stop inventing the arguments that are not there.
               | The only people who are downplaying dysfunctonal
               | governments are the crypto shills and crypto peddlers.
               | 
               | If you actually took care and _read_ what I wrote instead
               | of imagining what I wrote, you 'd see that never did I
               | downplay dysfunctional governments.
               | 
               | > doesn't make oppressive governments any less
               | oppressive.
               | 
               | Literally nowhere I said this.
               | 
               | > but the argument that poor government is not that bad
               | of a global problem "all things considered" is an
               | absolutely terrible one.
               | 
               | If only there was a single person here who made this
               | argument. Also, an oppressive government does not a
               | dysfunctional government make.
               | 
               | So, in the course of just a few sentences you made these
               | claims:
               | 
               | - that I downplayed
               | dysfunctional/authoritarian/corrupt/failing governments.
               | I didn't
               | 
               | - that I somehow argued that oppressive gvernments are
               | not that oppressive. I didn't
               | 
               | - that somehow authoritarian/oppressive is equal to
               | dysfunctional. It isn't, necessarily.
               | 
               | What I _did_ write was:
               | 
               | - the vast majority of people in this world do not live
               | in _dysfunctional_ governments
               | 
               | - crypto makes the problems with dysfunctional
               | governments _worse_ : your "assets that goverment can't
               | steal" have to be somehow converted into
               | food/clothing/shelter etc. which makes you a target for
               | Rubber-hose cryptanalysis etc. Any other "assets" are
               | worthless because your "non fungible proof of ownership
               | on blockchain" on your house, car, and other physical
               | items are woth exactly zero even in a functional
               | government, much less in a dysfunctional one.
               | 
               | So. "All things considered", what's your opposition to
               | what I wrote and not to what you imagine I wrote?
        
           | xigoi wrote:
           | Nuclear fusion is meant to solve our energy problems, not to
           | make them as bad as possible.
        
             | knorker wrote:
             | Then you've not heard what blockchain apologists say on the
             | issue: That they are stimulating demand, and speeding up
             | the development of renewals.
             | 
             | Which is like keeping your tap water running into the
             | sewers at full blast 24/7 and saying you're stimulating the
             | desalination industry.
             | 
             | Also sounds like Zorn in Fifth Element, when he's talking
             | about the benefits of destruction. When your argument
             | sounds like one made by a fictional over the top Hitler-
             | inspired absolute evil character, then maybe you should
             | reassess your life choices.
        
           | yunohn wrote:
           | I love the irony of comparing blockchain (energy burning)
           | enthusiasts to nuclear (energy generating) physicists.
        
             | kwertyoowiyop wrote:
             | Every business needs customers!
        
       | jeroenhd wrote:
       | > Illegal images being sent to your wallet, forcing you to go to
       | prison in some places.
       | 
       | My god, I hadn't even considered that, but they're right, there's
       | currently n established blockchain the requires permission to
       | send anything. That's fine with money, but with NFTs that
       | actually represent something that could be a serious risk.
        
         | kamranjon wrote:
         | I realize that it is said to be prohibitively expensive to
         | store an image on-chain - but if an actual illegal image was
         | stored on-chain would that be irreversible? Basically I'm
         | wondering if making the entire ledger illegal to posses is as
         | simple as ponying up the cost? Could that bring down an entire
         | crypto currency? Sorry if this sounds naive, I am just not sure
         | what is currently possible.
        
           | pclmulqdq wrote:
           | It has already happened, and nobody cared. Very early on, the
           | bitcoin blockchain ended up playing host to some illegal
           | images, but nobody took down bitcoin or bitcoin nodes for
           | storing them.
        
           | jeroenhd wrote:
           | It would be practically impossible, the only way you can
           | remove something from the blockchain is to ask all nodes to
           | revert to an earlier version and purge the offending blocks
           | and any blocks related to them.
           | 
           | This is also why using public blockchains for storing
           | personal information is such a stupid idea, illegal even if
           | the GDPR is involved in any way. Blockchains are designed so
           | no information can be altered or redacted, and that's often
           | an overlooked problem.
        
         | neuroma wrote:
         | I forget the name but there was an NFT set that was dropped
         | straight to wallets. It was various pixilated dicks. Kinda
         | funny and cute I suppose. They had rarity traits etc.
        
         | Joeri wrote:
         | Someone can send you illegal material through the regular snail
         | mail and call the cops as soon as the mail is delivered. Is
         | this really that different?
        
           | samatman wrote:
           | That's the point of this sort of (hypothetical?) attack: poor
           | Bob now has a poison envelope on his private key, he has
           | something which roughly constitutes 'ownership' of illegal
           | bits.
           | 
           | Does our legal structure support immediately transferring it
           | to a null wallet as a disclaimer of ownership? Bob doesn't
           | want to be the one to make that case law. Nor does he want to
           | hand over his private key, or clean his wallet out of
           | everything but the evil image and _then_ hand over his
           | private key.
           | 
           | Basically there are no good options, although burning the
           | offending data by sending it to /dev/null should emerge as a
           | valid defense. Will it?
        
             | jakear wrote:
             | "I swear officer, the only proof I have of ever being sent
             | those images is this folder filled with infinitely detailed
             | top-down photographs of each one of them lying face-up in
             | my trash can""
        
               | samatman wrote:
               | A tidy summary of the issue, that.
               | 
               | But hey, if it was a Bored Cryptokitty, then Bob can't
               | sell it and no one can buy it anymore, so clearly, he
               | doesn't own it.
               | 
               | The same principle _should_ apply to evil bits, the real
               | kicker being that the whole rigamarole is now written to
               | a shared database whose, er, immutability is part of the
               | product on offer.
               | 
               | Man, the Twenties are gonna be lit.
        
           | jeroenhd wrote:
           | I don't have to pay ethereum gas to hand the proof over to
           | the police or to burn it if they don't care. The mail system
           | also doesn't keep a public, permanent record of all things
           | mailed to me that any political opponents might use to imply
           | things.
           | 
           | There are also countries where you don't want to let the
           | police know you own crypto because of laws against
           | alternative currencies.
           | 
           | Real world comparisons don't really work well with public
           | blockchains.
        
             | BlueTemplar wrote:
             | Well, if you don't have a wallet then you can't receive it,
             | and if you _have_ a wallet, you 're suspect anyway ?
        
           | berkut wrote:
           | I personally wouldn't want to put possible key disclosure
           | laws to the test in this situation.
           | 
           | With post mail I'd imagine that scenario is somewhat timing-
           | critical, whereas I'm not sure how feasible it is to delete
           | things if they are in the blockchain (consensus for deletion?
           | How does that work?) and the police seize all the computers
           | in your house.
        
         | srqwe wrote:
         | Where do you live that you can be arrested for someone sending
         | you illegal material you didn't request?!
        
           | jeroenhd wrote:
           | Possession if child porn is illegal in many countries. If
           | digital wallets convey any kind of ownership (which anyone
           | using cryptocurrency or NFTs would argue in favour of) then
           | that implies receiving child porn makes you be in possession
           | of illegal material. I'm no lawyer, but I'm pretty sure not
           | reporting such content to the police immediately would be a
           | crime, and even if you do the right thing the police might
           | still suspect you if you're unlucky.
           | 
           | Someone malicious could definitely send a collection of child
           | porn through the mail and report you the second it arrives.
           | If they can time it right, you could definitely be in trouble
           | and the police would likely take all of your digital storage
           | and search for more. It's a lot harder to do such things
           | anonymously in the real world, where security cameras and
           | physical mail boxes are a thing, but I wouldn't be surprised
           | if someone would actually pull off something awful like this.
           | 
           | Of course, the police probably won't arrest you if you
           | immediately report the illegal contents and hand over the
           | evidence (or destroy the evidence without involving the
           | police), but that's not as easy with the blockchain.
           | Transferring the NFT out of your account would likely involve
           | paying some kind of transfer fee (ethereum gas is quite
           | expensive) and the police aren't going to pay that for you.
           | You won't be finding or suing the sender of the child porn
           | either, because this stuff isn't hard to do anonymously. Even
           | if you do manage to transfer the illegal content out of your
           | wallet, the blockchain will forever keep a public record of
           | the content you once owned, so even if you do everything
           | right the accusation of paedophilia will forever be easy to
           | make.
        
         | meltedcapacitor wrote:
         | Is it fine with money?
         | 
         | A ransomware operator could send the loot from an operation,
         | channelled through a well publicized address, to someone they
         | don't like which makes their account undistinguishable from
         | that of a fence as seen by blockchain analytics firms
         | maintaining the blacklists of addresses legit players do not
         | task to. Or they could blackmail someone by threatening to burn
         | their account by sending tainted funds.
         | 
         | Politicians could be sent unwanted donations to dirty their
         | reputation by making it looked they're supported by the wrong
         | people.
         | 
         | ...
        
           | jeroenhd wrote:
           | You can already do that though the regular old banking
           | system, no difference there. Banks monitor and take action
           | when they detect money laundering systems in their transfers,
           | and they use graph analysis that's not dissimilar from the
           | analysis law enforcement uses for tracking anonymous wallets.
           | The mixers in the cryptocurrency world exist as school kids
           | acting as fencers in the real world. A crime ring could
           | definitely "taint" a politician's bank account if they wish
           | to do so, but the manual oversight of the banking system
           | probably wouldn't flag them.
           | 
           | It's not that this isn't a problem with cryptocurrencies,
           | it's just that it's a problem that already exists in the real
           | world.
        
       | rutierut wrote:
       | This is such a bad take, almost everything here is wrong in some
       | way, e.g. see the other comments.
        
       | emptybottle wrote:
       | I wish they would expand on their objection to using tezos.
       | 
       | https://hicetnunc.art is an active alternative to opensea, and
       | the gas fees on tezos are far smaller (pennies)
       | 
       | Whats the downside?
        
         | jsheard wrote:
         | Isn't it the case that these alternative blockchains are only
         | cheap because practically nobody uses them? There's a recent
         | example from the Polygon blockchain, which was also sold on
         | having gas fees on the order of a penny, until the recent
         | launch of a Polygon blockchain game which drove enough
         | transactions to push the gas fees up to half a dollar.
         | 
         | https://www.coindesk.com/tech/2022/01/06/polygon-under-accid...
         | 
         | They don't seem to really be solving the scalability issues,
         | but rather just kicking them down the road, at which point yet
         | another blockchain will pop up to "solve" the issue.
        
       | [deleted]
        
       | jollybean wrote:
       | In neither of the articles did someone even mention even a use
       | case for something even remotely value creating.
       | 
       | I suppose for some, enhanced control and privacy of full
       | decentralization has value, but it's a very niche scenario.
       | 
       | Web 1 brought us the internet. It's already decentralized, and it
       | changed everything.
       | 
       | Web 3 enabled us to interact a lot more with user-generated
       | content. FB, YouTube. Nice, but it has some downsides.
       | 
       | Web 3 ... so far mostly Crypto and NFTs have some possibly
       | interesting characteristics but are mostly giant pyramid/MLM
       | style scams.
       | 
       | Web 3, so far, is a lot of hot air and a mostly hollow effort,
       | it's like Tech Buzfeed. We should be doing better than this.
        
       | boffinism wrote:
       | Moxie says 'Ys are often X'. This says that's a 'lie' because
       | 'Most Ys are not X'.
       | 
       | Hands up if you see the flaw here.
        
         | yunohn wrote:
         | This article also claim that "Z solves the problems mentioned"
         | but Z is actually 100 different potential proposals.
        
       | butz wrote:
       | So in theory, it might be possible to build a "pirate bay" on
       | blockchain (presuming that it has capability to store huge
       | amounts of data) and resist DMCA takedowns?
        
       | bambax wrote:
       | > _The sooner Opensea dies, the better._
       | 
       | From my understanding of the space and the original article, it
       | seems OpenSea will not die and this is pure wishful thinking.
        
         | tobessebot wrote:
         | This is the dilemma in a nutshell. There are lots of incredibly
         | smart people working in the web3 space who are aware of its
         | limitations, but for every one of those, there are 1000 people
         | just trying to make as much money as possible.
        
         | TigeriusKirk wrote:
         | OpenSea could very easily die. They have momentum, but not a
         | lot of moat. They also don't have a lot of community good will.
         | A well funded competitor could take them down quickly.
         | 
         | Might not happen, but as of now it definitely could.
        
           | paulgb wrote:
           | According to a Twitter employee, Twitter will piggyback on
           | OpenSea verification for verified profile pictures. If it
           | ships, that will be a big moat.
           | 
           | https://twitter.com/thesmarmybum/status/1478505321433735169?.
           | ..
        
             | TigeriusKirk wrote:
             | Not particularly. What verification means there is
             | verifying that a certain Bored Ape is really on the
             | "official" Bored Ape contract. It's verifying the contract
             | address and nothing else. The NFTs themselves can be traded
             | anywhere, there's no lockin for OpenSea there.
             | 
             | It's trivial for Twitter to add another contract address
             | verification source.
        
               | paulgb wrote:
               | Will OpenSea verify an NFT minted on a non-OpenSea
               | platform? I had assumed the answer is "no" but I'm not
               | 100% sure.
               | 
               | > It's trivial for Twitter to add another contract
               | address verification source.
               | 
               | It's technically trivial, but then they are putting
               | themselves in a position to verify the verifiers. It
               | seems like they are outsourcing verification because they
               | want to avoid the overhead of deciding what a verified
               | NFT is, which is something they would have to do if they
               | invited in more sources.
        
               | TigeriusKirk wrote:
               | >Will OpenSea verify an NFT minted on a non-OpenSea
               | platform?
               | 
               | Yes. All the popular NFTs were minted on their own
               | contracts, not on OpenSea.
               | 
               | My suspicion is Twitter will move to verifying for
               | themselves in the long run. I get why they don't want to
               | do it to start, but the hassles of dealing with any 3rd
               | party will grow over time.
        
               | paulgb wrote:
               | I found the form to get verified; it doesn't matter where
               | the collection was minted but you have to reach a volume
               | threshold on OpenSea.
               | 
               | https://airtable.com/shr6kWzFZ4gWdYE6C
               | 
               | I would bet against Twitter ever entering the NFT
               | verification game. They are already in over their head
               | with account verification, IMHO.
        
           | bambax wrote:
           | > _A well funded competitor could take them down quickly_
           | 
           | Ok, maybe, but that would mean they would be simply replaced
           | by more of the same. It would not mean a return to a
           | decentralized system.
        
             | TigeriusKirk wrote:
             | Sure. My expectation is Coinbase will clobber them, and I'm
             | not excited about that from a decentralization viewpoint.
             | They _will_ have a moat since they 're also where a lot of
             | people keep their money. Money will never have to leave the
             | platform, which is an advantage.
             | 
             | There are projects in the works for decentralized
             | exchanges. There are challenges there, but they will
             | eventually exist. I doubt they'll ever dominate, though.
        
               | timeon wrote:
               | > Money will never have to leave the platform
               | 
               | I wonder if they even need the blockchain.
        
               | TigeriusKirk wrote:
               | It's a fair question. They don't _need_ the blockchain
               | until the money /nft leaves the platform. But to keep
               | credibility, they'll need the NFTs to show up in on-chain
               | addresses. They may end up only doing that on-request.
               | 
               | The NBA TopShot collectibles work on a blockchain, though
               | the media being traded (NBA game clips) can only be seen
               | on the official platform and you can't sell the
               | collectibles on any other platform. And they're their own
               | on-ramp by taking credit card purchases for the
               | collectibles. As things stand, there's really no good
               | reason for them to be on a blockchain at all, and
               | personally I don't consider them to be a real NFT. None
               | of that has stopped them from being successful, though.
        
       | arunoda wrote:
       | > Just to clarify, this is what the author wanted to do. You can
       | create distributed apps easily using Fleek or by manually
       | uploading to IPFS, Arweave or Filecoin.
       | 
       | Seems like the author has never build an app before. There
       | nothing easy even with the current tech. It's much harder with
       | the tech they mentioned.
       | 
       | Even with that, there's a centralized system anywhere. Liek
       | Arweave's DNS system etc.
        
       | sovietmudkipz wrote:
       | The thing I think that sucks that hasn't been covered is how you
       | have to have a wallet specific to each blockchain I want to
       | interact with. I have to know what blockchain the web3 property
       | uses.
       | 
       | Why can't I have a like universal wallet? I don't want my NFTs
       | divided among 4-5 wallets, especially as new chains are created
       | as time goes on. Kinda a sucky user experience.
       | 
       | That's my nit
        
       | PaulDavisThe1st wrote:
       | So far I've read barely one article that mentions web3 _and_
       | manages to describe the fundamental concepts and problems.
       | Instead, most people writing about this seem to assume that the
       | "problems" web3 is supposed to fix are completely self-evident,
       | and then everyone who is in favor of the current "vision" of web3
       | simply assume that blockchain is the correct technological
       | answer.
       | 
       | It doesn't seem that hard to state relatively quickly and simply:
       | 
       | Current ways of handling data online generally result in large
       | centralized databases under the control of relatively or
       | extremely large corporations, which gives these corporations too
       | much control over (a) what data is accessible (b) what can be
       | done with the data (c) the lifetime of the data.
       | 
       | Sensible folks generally acknowledge that this either is a
       | problem, or is likely to become one.
       | 
       | So the central issue is: how do we have data available online
       | without it under the control of corporations that run centralized
       | databases?
       | 
       | ----
       | 
       | In response to this, cryptocurrency advocates point to blockchain
       | technology and say, in essence, "look! there's an example of a
       | technology that does exactly that"
       | 
       | However, for this to be the best solution to the problem requires
       | a few things to be true that are either untrue or not known (yet)
       | to be true.                 * was blockchain designed to handle
       | arbitrary data blobs, or was it designed to handle transaction
       | records?            * does pretending that any arbitrary data
       | blob can be treated as a transaction record help or hinder
       | solutions?            * are there other ways to distribute data
       | storage and access that don't depend on the fundamental
       | technologies/concepts inherent in blockchains?
       | 
       | ----
       | 
       | Why anyone feels they can be certain that the answers all
       | indicate that blockchain is the obviously correct technology to
       | use for distributed trusted data storage and access totally
       | escapes me.
        
         | jollybean wrote:
         | Fully agree that these articles often fail to put things in a
         | broader context.
         | 
         | But I'll take it a step further than 'Blockchain is not the
         | answer' and indicate that Web3 itself probably isn't an answer
         | to that much in the first place.
         | 
         | "this either is a problem, or is likely to become one."
         | 
         | Web 1/2 approaches have tremendous advantages.
         | 
         | As the original article stated - people don't want to run
         | servers.
         | 
         | People don't want to manage confusing things.
         | 
         | We want everything mostly SaaS.
         | 
         | Some of those push a bit too far, like Apple locking you out of
         | your Mac - but this is probably best dealt with with
         | legislation.
         | 
         | The privacy and control benefits of self hosting are limited to
         | mostly niche use cases, and of course, blockchains have
         | problems, as you mention.
         | 
         | Web 2 is just a few bits of legislation, a few rational
         | consumer choices, and a few fewer crappy companies away from
         | being fairly ideal.
         | 
         | Don't use iCloud, avoid Google for anything other than search,
         | don't 'depend' on Facebook or Twitter and already you're doing
         | well.
         | 
         | Dialogue and experiments are great, but NFT/Crypto so far is
         | just a lot of MLM noise.
        
       | StrLght wrote:
       | >Some countries have unstable currencies and to use USD you need
       | to pay a hefty fee.
       | 
       | And the solution to this is using unstable internet money which
       | are being accepted by a handful of stores? Sounds about right.
        
       | aaomidi wrote:
       | > My personal pet hates for crypto are:
       | 
       | > Illegal images being sent to your wallet, forcing you to go to
       | prison in some places.
       | 
       | Lol
        
       | JofArnold wrote:
       | > This is a lie. Most NFTs which sell for millions use IPFS,
       | Arweave, Filecoin or others for decentralised storage of data
       | 
       | Nope - do your research better before you use the word "lie".
       | BAYC did it until very very recently for instance. Definitely as
       | of 27th September they were using cloud functions as you can
       | clearly see in my gist here:
       | https://gist.github.com/JofArnold/bf2c4a094fcdd4aee2f52983c7... I
       | know there is/was plenty of others too because I looked deeply
       | into this around the time.
        
         | [deleted]
        
         | dylkil wrote:
         | Ok but currently they are using IPFS so does it matter if they
         | once used the cloud? Go here[1] and scroll down to tokenURI and
         | input 1 and you will get an IPFS hash back.
         | 
         | [1]
         | https://etherscan.io/address/0xbc4ca0eda7647a8ab7c2061c2e118...
        
           | JofArnold wrote:
           | I'm aware which is why I said "very very recently"* (I just
           | so happen to have checked when Tweeting this the other day so
           | it was fresh in my mind
           | https://twitter.com/JofArnold/status/1478071171597975554).
           | 
           | I don't think the fact they are now using IPFS makes it any
           | more credible either; IPFS is not a new thing and the
           | valuations were huge already by September. They should have
           | done it from the start. Furthermore that they can mess around
           | with the base URL is not cool.
           | 
           | * Although thanks for posting that as without that fact I
           | admit my story was incomplete.
        
       | kristofferR wrote:
       | This is a okay response, although the language ain't great.
       | 
       | Half of Moxie's post were using the evil YC company OpenSea as an
       | argument against decentralization, which seemed strange. It's
       | like arguing against decentralized email because so many use
       | Gmail.
       | 
       | The arguments against Infura etc. especially fell flat, as they
       | are just proxies to the decentalized blockchain, the only value
       | they provide is providing exactly the same decentralized
       | blockchain data as your own node would. It's not as decentralized
       | as running your own node would be, but to call it centralization
       | is still wrong.
        
         | rvense wrote:
         | > It's like arguing against decentralized email because so many
         | use Gmail.
         | 
         | Which Moxie does often do, including in the web3 article.
         | 
         | I respect Moxie's opinion on (de)centralization, but I just
         | have different priorities to him. I am personally more
         | concerned about one company (Facebook or Signal, although I do
         | use the latter) owning and controlling access to a platform
         | than I am about perfect end-to-end encryption and forward
         | secrecy.
        
         | ZephyrBlu wrote:
         | The point is that when the proxy is a monopoly, it basically
         | becomes the new, centralized source of truth rather than the
         | _actual_ decentralized source of truth.
         | 
         | If 90% of wallets utilize the OpenSea API what the blockchain
         | says doesn't really matter anymore. OpenSea is effectively the
         | new source of truth.
        
       | bambax wrote:
       | This response is technical and appears a little naive to me. The
       | reason why NFTs are currently hot is because there's a gold rush
       | and people fear missing out. I don't think anyone who buys an NFT
       | wants that NFT; they just hope to flip it for more money than
       | they spent, or maybe diversify their portfolio (use it as a store
       | of value). I could be wrong of course, but I seriously doubt it.
       | 
       | Which means, the technical solutions to the questions raised in
       | the original article this responds to, will probably not have
       | time to be implemented before the rush is over.
       | 
       | Also, one of the main points of the first article, if not the
       | main one (and certainly the first one) is that _centralization is
       | a feature, not a bug_. People want a central authority and not
       | bother themselves with running their own server /infrastructure.
       | 
       | So the only way for OpenSea to "die" is if it's replaced by a
       | different, but similar, central authority.
        
         | dade wrote:
         | > I don't think anyone who buys an NFT wants that NFT; they
         | just hope to flip it for more money than they spent.
         | 
         | Is this not just how financial assets in general works? Anyone
         | buying Amazon's share are not buying it because they want that
         | share. They buy it because they hope some time down the line
         | (weeks, months, years) they can flip it for more money than
         | they spent.
        
           | suzzer99 wrote:
           | Yes. But the intrinsic value of a piece of art is tied to
           | someone wanting to own that art for the enjoyment of it. The
           | intrinsic value of a stock is tied to the earning power of
           | the company you own a small piece of. NFTs have no earning
           | power.
        
           | AlexCoventry wrote:
           | In theory, an Amazon share is a share in future profits of a
           | productive business.
        
           | piaste wrote:
           | NFTs cannot pay dividends and do not have boards of
           | governance.
           | 
           | A share without votes and without dividends would be worth
           | $0.
           | 
           | (Also, many NFT shills and/or shovel salesmen fervently
           | insist that they're selfless patrons of the arts, rather than
           | simply trying to make ponzi cash)
        
         | zrm wrote:
         | > centralization is a feature, not a bug
         | 
         | This is not what the original article says. Here's the first
         | conclusion:
         | 
         | > _We should accept the premise that people will not run their
         | own servers by designing systems that can distribute trust
         | without having to distribute infrastructure._
         | 
         | In other words, centralized trust _is_ a bug, but that 's a
         | different thing than centralized servers.
         | 
         | The problem with existing NFTs is that they not only don't have
         | decentralized servers, they also don't have decentralized
         | trust. They're just not what they claim to be at all.
         | 
         | I would also point out that "centralized" isn't a binary thing.
         | Having literally everyone run their servers is not really what
         | anybody wants, but neither is having one company run a single
         | server for everyone in the world, which isn't really what
         | happens. Even with a "centralized service" like Facebook, they
         | have multiple servers distributed all over the world.
         | 
         | And if the servers didn't have to be trusted, they also
         | wouldn't all have to be run by a single company. Having a
         | billion servers for a billion users is not what anybody wants,
         | but we already have a thousand servers for a billion users. And
         | if the servers are not to be trusted anyway, why do we need
         | them all to be run by the same entity?
         | 
         | Full atomization rarely works. Federation works.
        
           | jonnycomputer wrote:
           | >The problem with existing NFTs is that they not only don't
           | have decentralized servers, they also don't have
           | decentralized trust. They're just not what they claim to be
           | at all.
           | 
           | This. And take away the techno-libertarian glamour, it
           | becomes just another technology that might have useful
           | applications, or might be a huge waste of time, resources,
           | and increases complexity and decreases transparency.
        
           | syntheweave wrote:
           | The fact that BitTorrent has worked for decades without
           | centralizing, and likely never will centralize, stands in
           | quiet opposition to the entire "centralization is inevitable"
           | line of thinking. The trackers, the obvious centralizing
           | force, have always remained content-focused, rather than
           | making the transition to platform control. Trackers are
           | roughly federated, as you note; there are a lot of nodes, but
           | relatively few trackers. And I believe most blockchain style
           | systems would shake out similarly.
           | 
           | The authentic dev communities building blockchain tech are
           | throwing their weight behind the idea that they will in time
           | transition towards technical solutions, having _already_ set
           | a course for the social solution. So from their end, this
           | criticism is always technical in nature. The initial source
           | of trust is going to be in mathematical realities
           | guaranteeing certain outcomes: if not cryptography, then
           | tokenomics. Of course there are a huge number of  "P.T.
           | Barnums" who have jumped ahead to create solutions today, and
           | these solutions tend to platformize. That's the discontinuity
           | making it a circus.
        
             | giantrobot wrote:
             | > The fact that BitTorrent has worked for decades without
             | centralizing, and likely never will centralize, stands in
             | quiet opposition to the entire "centralization is
             | inevitable" line of thinking.
             | 
             | Except for all the centralized points you'd be correct.
             | BitTorrent requires bootstrap nodes. While these _can_ be
             | specified in a torrent file but many clients have some hard
             | coded values for bootstrap nodes. If bootstrap nodes are
             | unavailable and a torrent doesn 't contain new values a
             | BitTorrent client can't do much.
             | 
             | Then there's _finding_ content which doesn 't just
             | magically happen. Torrent search engines exist because BT
             | doesn't have a built in search system like other P2P
             | networks.
             | 
             | Finally there's the central locations where clients are
             | developed and distributed. BT clients don't just manifest
             | on people's computers. They don't magically update
             | themselves.
             | 
             | Cryptobros talk of decentralization as if shit just exists
             | in a luminiferous ether. You just wish hard enough and
             | things manifest on your system from it. Centralization
             | doesn't automatically mean Facebook controls everything.
             | Stuff comes together at locii and those are by nature
             | central in a network. They can be disrupted, blocked, or
             | just disappear and then the network falls apart.
        
         | eqmvii wrote:
         | Hey, I'm sure plenty of people are buying NFTs with their own
         | money, too. Nice trick to take $X and turn it into 0.98$X and
         | an asset "worth" 0.98$X.
        
           | riffraff wrote:
           | The thing goes deeper: this gives you a big opportunity to
           | launder money. It's the same with art, but at least in the
           | art world there are some regulations.
        
             | samatman wrote:
             | If you consider the Free Port of Liechtenstein a regulation
             | then ok, sure.
        
               | reaperducer wrote:
               | Which is probably why he wrote "some regulations," not
               | "completely and entirely 100% perfectly regulated."
        
           | rtkwe wrote:
           | The wild thing is going to be the moment the IRS comes around
           | and starts asking people about their sales and it turns out
           | many of the huge sales are wash trades inflating the value of
           | tokens.
        
             | jakear wrote:
             | It won't be that wild because we won't know about it.
        
         | chrisco255 wrote:
         | > I don't think anyone who buys an NFT wants that NFT > I could
         | be wrong of course, but I seriously doubt it.
         | 
         | You're wrong. I hold many NFTs that I want just for the sake of
         | the art. Sorry to disprove your theory. One of my favorites is
         | the Bonsai collection by ZenFT: https://www.zenft.xyz/
         | 
         | Some people use NFTs as simple mementos (free to claim, and
         | collect): https://poap.gallery/
         | 
         | People enjoy collecting and displaying NFTs:
         | https://oncyber.io/nawkzst People enjoy using their NFTs as
         | avatars in Web3 games: https://www.webb.game/ People use NFTs
         | to access exclusive areas on Decentraland
         | (https://decentraland.org/) and Sandbox
         | (https://medium.com/sandbox-game/cyberkongz-vx-partner-
         | with-t...
         | 
         | People use NFTs for token-based access to websites or online
         | services. People use them for real world events. People spend
         | countless hours hanging out on Discord in various communities
         | and servers and they build together.
         | 
         | > People want a central authority and not bother themselves
         | with running their own server/infrastructure.
         | 
         | People don't want a central authority. Most people don't really
         | understand the implications of the technology they use.
         | Awareness is higher than it's ever been, however, in the age of
         | censorship and deplatforming. It's not sustainable or desirable
         | for all of humanity's communication and value exchange to be
         | routed through a handful of trillion dollar tech monopolies.
         | 
         | It's not desirable that so much of the web be dominated by
         | these entities. It's not good for democracy, it's not good for
         | humanity.
         | 
         | > So the only way for OpenSea to "die" is if it's replaced by a
         | different, but similar, central authority.
         | 
         | Only those who lack imagination or skill would assert such a
         | thing.
        
           | tasha0663 wrote:
           | The idea of NFTs as access keys makes me wretch. How can we
           | make DRM worse? I know, let's make it speculative and even
           | worse for the environment. (Re: proof of stake, I'll believe
           | it when it happens without Ethereum forking again)
        
             | TimJRobinson wrote:
             | NFTs can actually be the opposite of DRM. They are
             | ownership without exclusivity.
             | 
             | It is literally impossible to prevent piracy, but we still
             | want people that create art/music/games to get paid - NFTs
             | are the solution to this problem. The artist gets paid,
             | fans get indie bragging rights, and everyone gets to enjoy
             | the content.
        
               | dragonwriter wrote:
               | > NFTs are actually the opposite of DRM. They are
               | ownership without exclusivity.
               | 
               | Their is no ownership without exclusivity.
               | 
               | (And NFTs are exclusive; they just happen to _currently_
               | mostly be used as pointers to non-exclusive items with no
               | other meaning, but there is nothing inherent in the
               | technology restricting them to that use.)
        
               | TimJRobinson wrote:
               | > Their is no ownership without exclusivity.
               | 
               | Why not? Plenty of people own parks and gardens that are
               | open to the public. Art in galleries is all owned by
               | someone but many are free for public viewing. Everyone
               | getting to enjoy the thing while the creator still gets
               | paid sounds like an awesome future to me.
        
               | dragonwriter wrote:
               | > Why not?
               | 
               | Because "ownership" is the right to exclusivity.
               | 
               | > Plenty of people own parks and gardens that are open to
               | the public
               | 
               | You can choose not exercise the right to exclusivity (or
               | to do so selectively), but if you don't have it, you
               | don't own anything.
               | 
               | > Everyone getting to enjoy the thing while the creator
               | still gets paid sounds like an awesome future to me.
               | 
               | Sure, patronage of public art can be great, but it's not
               | ownership (except maybe "ownership" of an exclusive right
               | to receive some defined form of credit for the
               | patronage.)
        
               | scubbo wrote:
               | Those things you have described are still exclusive in
               | that the owner _could_ prevent public access if they
               | chose to.
        
               | 8note wrote:
               | the control is exclusive. the owner can always put up a
               | fence, or tell people to get off their lawn
        
               | gitgrump wrote:
               | Why would I bother with an NFT when I can already
               | effortlessly copy bits? Digital property is not physical
               | property and I'm not sure why people are still so intent
               | on shoehorning the characteristics of the latter into the
               | former.
        
             | chrisco255 wrote:
             | It's not DRM. It's token-based authentication. Are you
             | against token-based authentication? Are you against
             | Software-as-a-Service? Are you against membership-based
             | organizations as a concept? Are you against board voting by
             | stockholders? If you're not against these analogous
             | concepts, why would you be against NFT-based versions of
             | this?
             | 
             | One difference with NFTs is you retain the right to resale
             | and transfer at all times. Which is totally different than
             | DRM.
             | 
             | As for Proof of Stake, it's already live:
             | https://ethereum.org/en/eth2/beacon-chain/ It was shipped
             | in December of 2020.
             | 
             | The remaining component is the Merge, which merges the
             | Proof-of-Work chain with the Proof-of-Stake chain:
             | https://ethmerge.com/ . That is coming this summer. The
             | Ethereum community is almost 100% behind the merge, so it's
             | highly unlikely that ETH forks over it, and even if one
             | occurred, the forked chain would not succeed.
        
               | 8note wrote:
               | Isn't the authentication your private key? The nft would
               | be authorization, which sounds a lot like digital rights
               | management to me. The power is still with the record
               | company to decide whether a sold copy is still valid
        
               | gizmo385 wrote:
               | > That is coming this summer.
               | 
               | Hasn't that date been continuously pushed back? Like the
               | parent you replied to, I'll believe when I see it. And
               | regardless, the mining infrastructure spun up because of
               | the gold rush on Ethereum isn't going away at thia point.
               | Those miners will just move to different chains.
               | 
               | And while proof of stake does partially minimize some of
               | the environmental concerns, it introduces other problems
               | that aren't great (like all of the power being
               | systematically consolidated into the hands of early
               | adopters and the wealthy).
        
           | bambax wrote:
           | > _You 're wrong. I hold many NFTs that I want just for the
           | sake of the art._
           | 
           | This is an old debate and not really the subject at hand, but
           | I'll still bite (against my better judgement).
           | 
           | You don't need to own an NFT to enjoy the art. That's the
           | fundamental difference between art in the real world and
           | digital art (NFT or not). When you own a piece of art you get
           | to look at the original; this is a unique experience in the
           | case of a painting, and sometimes a rare experience in the
           | case of limited editions of photos.
           | 
           | But the digital art is the same whether you "own it" or not.
           | From an esthetic experience (not a financial one, obviously),
           | it's pointless to "own" digital art.
           | 
           | The only thing that would influence the esthetic experience
           | of digital art is the medium. Buy a better screen. Better
           | speakers. Etc.
           | 
           | > _People spend countless hours hanging out on Discord_
           | 
           | Sure. That I don't doubt.
        
             | chrisco255 wrote:
             | You don't need an original art work to enjoy the art
             | either. You can print out photorealistic copies. You can
             | buy a fake Rembrandt. You can buy a fake Gucci purse. It's
             | perfectly okay to do that...however...
             | 
             | What you lose is a direct connection to the original
             | artist. Art is as much about the story of that artwork as
             | it is the art itself.
             | 
             | If an artist mints an NFT and that NFT has has provenance
             | that's generally accepted by the community at large, then
             | it has all the properties of an original physical artwork.
             | Except that you can be more sure of its origin, because the
             | blockchain history is immutable and you can trace the
             | transactions back to the original creator.
             | 
             | Music NFTs have been created, although they are certainly
             | still nascent, it's possible to create an MP3-based NFT
             | that has the same or better quality as a CD album. One
             | could imagine NFT albums being minted just like CD and
             | record albums of yore. One could imagine people collecting
             | the NFTs just for the sake of actually owning the rights to
             | backup and play that music without having to stream through
             | Spotify or YouTube. One could imagine the user retaining
             | the right to resell that album just like they had the right
             | to resell a used CD back in the day.
             | 
             | I already gave many examples above about how NFTs can be
             | used beyond the basic use-case of attaching a JPEG (access
             | to services, access to software, use in cross-game or
             | cross-app experiences, etc).
             | 
             | Some people are collecting them as Proofs of Attendance
             | (POAPS), which are free NFTs used as badges. They're quite
             | popular and fun to collect. I do so for the pure enjoyment
             | of them. Sometimes the badges above are used for things
             | like giveaways. If I want to reward loyal community
             | members, I can issue a POAP for attending a particular
             | video chat, and then give out random rewards to anyone
             | holding one of my community's POAPs. That's cool, and fun.
             | I've been in communities where we create our own POAPs as
             | funny shared inside jokes.
        
               | 8note wrote:
               | If the music is on the blockchain, and the uploader
               | didn't own the rights to distribute the music, isn't
               | every blockchain host commiting copywriter infringement
               | by distributing the music to anyone that reads the
               | blockchain?
               | 
               | Don't you still have the ability to listen to the cd post
               | sale because you can always load up an older version of
               | the blockchain where you did own it?
        
               | kylebyproxy wrote:
               | To my ear, this all sounds like you're saying
               | participation in NFT is performance art, which I hadn't
               | really considered before, but I can kinda make sense of
               | the appeal in that light. It just seems in bad taste to
               | me that a person would claim ownership of someone else's
               | work. But to each their own.
        
               | Nemi wrote:
               | What you are saying is not that you like the art for it's
               | artistic value, because it has been established that you
               | can look at it whether you own it or not. What you enjoy
               | is the "ego" part of saying you "own" the NFT in
               | question, just like people that buy expensive paintings
               | when they say they are not buying it for the money, but
               | instead that they are an art lover. You are doing it
               | because it strokes your ego. Let's at least get past the
               | part of the argument where we pretend that looking at the
               | art is question the main driver. I am not even saying
               | that the ego part is inherently wrong, just different
               | than how you describe it. It is non-monetary at least,
               | but I can see how describing it this way is not as
               | altruistic sounding as "loving the art" is.
        
               | mthoms wrote:
               | I agree with the general point (I think) you're making
               | but I think there is some nuance here. It's not _just_
               | ego, at least not for everybody.
               | 
               | There is extra enjoyment to be had knowing that you came
               | into ownership of something according to a set of agreed
               | upon rules. That is to say "legitimate" ownership.
               | Legitimate NFT's can make one feel part of a community so
               | there is value in that.
               | 
               | Perhaps most importantly, "legitimate" ownership
               | generally implies that the artist(s) were compensated by
               | you (somewhat) directly. That, in itself can enhance the
               | enjoyment. There are more factors at play than merely
               | ego.
               | 
               | I'll give a personal, real-world example. I own ~$1000
               | item that I bought as part of fundraiser for someone
               | struggling with medical bills. I was also friends with
               | the creator and wanted to support their work. So, even
               | though I paid much more than I would have paid had I just
               | bought it directly, I get a great deal of extra
               | satisfaction out of owning this item. I supported two
               | different people whom I admire by purchasing it. That
               | makes me happy.
               | 
               | I'm not a huge fan of NFT's (as they exist currently) but
               | I don't think it's correct that enjoying ownership of NFT
               | art, or art in general, is solely ego-based.
        
               | kortilla wrote:
               | > You don't need an original art work to enjoy the art
               | either. You can print out photorealistic copies.
               | 
               | Something tells me you don't care much for paintings if
               | you think this is in any way a similar media.
        
               | kordlessagain wrote:
               | Basically, you are saying NFT creators can create any
               | type of digital artwork in any type of media that they
               | want, and NFT collectors can collect them for any number
               | of reasons. Maybe some of that is stored on chain, maybe
               | some is not.
               | 
               | So then, what is a Non-Fungible Token (NFT) actually good
               | for? The answer seems to be proofs of provenance,
               | ownership, and authenticity.
               | 
               | Provenance is defined as the place where something
               | originally came or began, or a record tracing the
               | ownership history of certain items that helps to confirm
               | their authenticity and value. How many things in the
               | world need a proof of provenance? Paper towels? No. Corn?
               | No. Cars? Yes, maybe. Art? Yes, as established, but not
               | everyone likes art like they do their cars, at least in
               | the West. So, market sizes matter. A good idea is only as
               | good as the market, and NFTs aren't an idea that is
               | actually sold, it's an idea on an idea of selling
               | something. Like marketing, NFTs are more like a meme than
               | a product or service. (I realize some people consider
               | marketing to include market analysis, which is something
               | else entirely.)
               | 
               | But, who runs the car provenance proofs? Do we put all
               | the data about the car on the chain? That would be too
               | much data for current chains. I suspect, like the speed
               | of computers, an increase in throughput will just result
               | in more junk on the chain. How much junk can a chain
               | take? Not much, I'd hazard. How do you sell your car NFT
               | to grandpa when the car chain is full of junk? You
               | probably don't.
               | 
               | But, there isn't really much in which I need to prove
               | ownership. My house and my truck have titles. It's
               | pointless to make NFTs for them, given the state runs the
               | database and the state is pretty good at this by now,
               | especially given they take money from me for property tax
               | and plates. I don't care to prove ownership of anything
               | else. What I have in my possession is enough proof. The
               | police would take a photo of my 3d printer as proof of
               | ownership if it were stolen and then located in my
               | neighbor's house.
               | 
               | The whole idea about using NFTs to share(holder) out my
               | house or truck is also pointless. To make me pay someone
               | that held an NFT on a share of my house is going to be a
               | challenge. There's probably a contract somewhere that
               | would do more good in forcing my hand to pay up, like the
               | mortgage company would do if I had a mortgage and
               | defaulted. But, is it useful? I guarantee attorneys will
               | get involved if that happens.
               | 
               | Authenticity? Who cares? In this age of mass consumption,
               | the focus of NFTs on art defines a very small market. In
               | fact, I'd say the desire by some to "collect", of a
               | certain generation maybe, is pretty pointless. It reminds
               | me of my friend buying a bunch of Hot Wheels in his 20s
               | because he thought not opening them and playing with them
               | would make them worth more in the future. He had a huge
               | collection in his attic. I don't trade things like this,
               | but many do, and I appreciate that they may think NFTs
               | help with their "hobby".
               | 
               | At the end of the day NFTs are made for the imagination -
               | which is why the conversation always turns to gaming.
               | They cater to it like nothing else. They make people
               | think that "value" is a real thing and that it can
               | somehow be "preserved" by using a series of calculations.
               | I get that some people love the idea of NFTs so much,
               | they can't help but spread that love to others. The only
               | problem I see with that is that there really is no killer
               | use case here. Instead, we get things like NFTs of blocks
               | of tungsten that can only be touched once a year or
               | saving that "special moment" in game that will be
               | forgotten by the mind in a year.
        
               | dmitriid wrote:
               | > If an artist mints an NFT and that NFT has has
               | provenance
               | 
               | It has zero provenance
               | 
               | > that's generally accepted by the community at large
               | 
               | Ah yes, that's why art isn't counterfeited en masse
               | because community something something. Oh wait...
               | 
               | Also. "Community at large" is literally "we need an
               | institution of trust".
        
             | kwertyoowiyop wrote:
             | If someone says they enjoy thing A and don't enjoy thing B,
             | we should take that at face value rather than arguing about
             | the logic of that position. Some people don't enjoy owning
             | original art either, and who am I to say they're
             | objectively wrong to not enjoy it?
        
           | [deleted]
        
           | BlueTemplar wrote:
           | Discord, being closed and centralized, is a very "web2"
           | software to use ?
        
             | chrisco255 wrote:
             | Discord is centralized. Yes, and? We are not in the end
             | state of Web3 yet. Web3 is nascent and new. And we have to
             | use some of the existing infrastructure to bootstrap it.
             | Just as the internet was bootstrapped by the Department of
             | Defense (via ARPAnet). Ideally we transition to a
             | decentralized chat service at some point (some communities
             | do use Matrix or Status), but in the meantime, we can't let
             | perfect be the enemy of good.
        
         | fivea wrote:
         | > (...) is that centralization is a feature, not a bug.
         | 
         | Please correct me if I'm wrong, but isn't centralization in
         | blockchain-related applications a critical problem which
         | defeats the whole purpose of said tech?
         | 
         | I mean, if a Blockchain is controlled by a single entity,
         | doesn't that entity have all it needs to rewrite it however
         | they wish?
         | 
         | And also, is there any difference between storing a record in a
         | centrally-managed Blockchain or a record in plain old
         | relational database managed by a third party?
        
           | bambax wrote:
           | This is all discussed in the original article ("My first
           | impressions of Web3"). The post here is a response to the
           | article. My comment says that the response may have missed
           | the point made in the article.
        
             | fivea wrote:
             | > This is all discussed in the original article
             | 
             | I read both posts, and I still have this question.
             | 
             | Is it possible to provide a clear and simple explanation?
             | Is there any answer at all which is not the expected
             | "you're right, centralized crypto is pointless at best and
             | a scam at worse"?
             | 
             | Otherwise this sort of reply feels like a blatant attempt
             | to dismiss a concern through hand-waving for which there is
             | no good answer without addressing any of it's points.
        
               | resonious wrote:
               | If by "centralized crypto" we mean "everyone using
               | OpenSea" (or similar custodian services) then the point
               | is that OpenSea _doesn 't have full control over the
               | data_.
               | 
               | I can build a competitor to OpenSea that has access to
               | everyone's NFT ownership data because it's in a public
               | blockchain. If Twitter decides to shut down their
               | service, it's gone.
        
               | richardwhiuk wrote:
               | Then how did OpenSea remove the NFT from Moxie's wallet?
        
               | TigeriusKirk wrote:
               | His particular wallet pointed to OpenSea by default for
               | his NFTs.
               | 
               | There are other wallets that do not, and the NFT never
               | left Moxie's address.
        
               | outside1234 wrote:
               | They stopped hosting the URL that the blockchain pointed
               | to
        
               | jakear wrote:
               | This isn't correct. Moxie hosts the image, OpenSea hosts
               | the endpoint the wallet queries for ownership listing.
               | The whole system is glorified CRUD, OpenSea always has
               | full control.
        
               | armchairhacker wrote:
               | The original article by Moxie explains this.
               | 
               | My understanding is, _some_ centralization doesn't defeat
               | the purpose of the blockchain. e.g. if a centralized
               | server stores and modifies the blockchain but it's
               | public, then clients can verify the blockchain, and fork
               | it if they don't agree with the server.
               | 
               | But too much centralization, which seems to be the case
               | now, basically does defeat the purpose. Because if
               | everyone is using the same client and server or if people
               | are interacting with these services insecurely exposing
               | their wallets and data, then these companies could switch
               | their backend to not use a blockchain or just steal
               | coins. Most people probably wouldn't even notice, and
               | even if they did there's nothing they could do.
        
               | eternalban wrote:
               | No, Moxie correctly pointed out that the _trust model_
               | and _physical infrastructure_ are distinct architectural
               | elements, and, it is good /ok to have decentralized for
               | the former but centralized for the latter. The reason why
               | was the long preamble about evolution of platforms vs
               | protocols, and user preference for 3rd party managed
               | convenience.
               | 
               | -- ps
               | 
               | So the question is whether it is possible to have
               | effective solutions in that design space. Email in fact
               | fits these design parameters: end users can use PGP and
               | PKI to have private and authenticated communication, but
               | as Moxie knows far better than me, it hasn't happened
               | because now we have shifted the burden of running
               | 'something' back to the end user again, who is now
               | responsible for participating in a 'decentralized trust'
               | system.
               | 
               | It appears the problem is reducible to (and thus is
               | fundamentally about) _identity_ and _associated
               | attributes of an identity_.
               | 
               | So what we really need is a decentralized identity
               | infrastructure with 'last mile' interfaces to your
               | physical political jurisdiction for those who want
               | "legal" attribution for fully decentralized interactions
               | (possibly built on centralized infrastructure). All other
               | "Web3" systems can be built on top of these.
        
               | [deleted]
        
               | politician wrote:
               | I agree that we need decentralized identity
               | infrastructure similar to sovrin.org, but what we're
               | going to get is "Login with Facebook" and "Login with
               | Apple ID".
        
               | 6510 wrote:
               | Real-name system https://en.wikipedia.org/wiki/Real-
               | name_system
        
               | politician wrote:
               | It's fascinating to learn that historically surnames were
               | issued by governments.
        
               | dmcgee wrote:
               | Is a blockchain strictly necessary for decentralization
               | at all? If the issue with decentralization is control and
               | governance rather than technology, why not have a
               | cooperative model that still functions on a centralized
               | database?
        
               | DarylZero wrote:
               | The cooperative model requires people to coordinate on
               | choosing the same human authority figure.
               | 
               | Blockchain only requires people to coordinate on choosing
               | the same programmatic criteria for block validity (and
               | then choosing the longest valid chain).
        
               | bombcar wrote:
               | Which practically ends up the same - see the Etherium
               | fork/rollback.
               | 
               | One _potential_ use maybe would be a blockchain that is
               | openly run by a company (80+% of nodes or something) but
               | if you also run a note it could continue after the
               | company ceases to be.
               | 
               | There are other ways to do that but it might almost be a
               | reasonable use case.
        
               | DarylZero wrote:
               | You can point to that event but it's actually not enough
               | to establish that it "practically ends up the same."
        
               | stransky wrote:
               | You can ignore the event, but the trust we're to put in
               | the blockchain is based on a promise that such an event
               | can't happen, but it did.
        
               | rglullis wrote:
               | I'm guessing your question is rhetorical, but in case it
               | isn't:
               | 
               | Repeat after me: "blockchain is only required if you want
               | to solve a problem that deals with permissionless,
               | trustless and distributed consensus".
               | 
               | - permissionless: no previous
               | vetting/authentication/authorization of any participant.
               | If you can a priori authenticate users, you can have a
               | decentralized system with Paxos, and you can run a
               | "decentralized" governance system based on simple "web of
               | trust".
               | 
               | - trustless: no participant is assumed to be
               | reliable/honest
               | 
               | - distributed: the network can suffer disconnections and
               | partitions, but the overall system can still work.
               | 
               | If you can choose who will be allowed to define
               | "consensus", you can use other BFT consensus solutions,
               | so no blockchain is needed.
               | 
               | If you have a "cooperative" model, this assumes that you
               | can trust the participants, so no blockchain is needed.
               | 
               | If your system can withstand network
               | disconnections/partitions, no blockchain is needed.
        
               | 8note wrote:
               | Participant needs a better definition. I'd think block
               | chain requires trusting _every_ participant.
               | 
               | The private key must always be trusted for what the
               | person behind it intends for it to do
        
               | jhgb wrote:
               | > - trustless: no participant is assumed to be
               | reliable/honest
               | 
               | Shouldn't that be "at least one participant is assumed to
               | be unreliable/dishonest"?
        
               | oblio wrote:
               | They're equivalent. If at least 1 participant is
               | unreliable/dishonest and I don't know which one, the only
               | logical reaction is to treat them all the same until I
               | can determine the culpable one.
        
               | anonymouse008 wrote:
               | Perhaps, but it feels a bit like the Monty Hall
               | paradox/game. If you know which ones are more truthful,
               | then the odds aren't as bad as "everyone must be guilty
               | until proven innocent."
               | 
               | "Innocent until proven guilty," the modus operandi of the
               | US judicial system, at least in theory, is the design of
               | a system that assumes trust and removes offenders.
        
               | rglullis wrote:
               | It's not about "justice" or "fairness". It's about
               | "correctness". An "honest" agent with stale data is as
               | unreliable as the "dishonest" one.
               | 
               | When dealing with Byzantine-style problems, there is no
               | such thing of "who is more truthful?", just "what is the
               | consensus that should be agreed on?"
        
           | pmontra wrote:
           | The point seems to be: the blockchain is distributed but if
           | everybody access to it through only a handful of nodes
           | (because they don't want to host their own ones) then it
           | could be centralized and nobody would notice the difference.
           | 
           | If there is only one node acting as gateway to the blockchain
           | then it could use PostgreSQL and there would be no
           | differences in trust.
        
             | ludamad wrote:
             | Are there SQL servers intended for direct public usage?
             | EDIT: I do understand the ubiquity of SQL servers :) I'm
             | asking about ones that expose a good chunk of SQL to end
             | users, since theoretically one could build on that
        
               | magicalist wrote:
               | REST APIs usually have a database behind them, yes.
        
               | ludamad wrote:
               | That's not what I meant, I meant 'direct' as in
               | permissioned by end users
        
               | thrashh wrote:
               | NFTs aren't permissioned by end users. The person that
               | deployed the smart contract still controls all
               | permissions (although they can't change it later -- that
               | is the only difference).
               | 
               | The reason that you can trade a NFT is because the smart
               | contract has an API written by the creator to allow it.
        
               | setr wrote:
               | What's the point of this ask? A blockchain's dataset
               | isn't arbitrarily editable by its users -- there's a very
               | specific set of actions you can do, which are well
               | defined, that modify the chain in a very structured
               | manner... just as any API sitting in front of a database
               | would do.
               | 
               | Obviously you can modify your local copy of the chain as
               | you wish, even corrupting the data, but if your chain
               | isn't accepted by the public, your changes don't mean
               | shit. So you're really only able to (meaningfully)
               | execute those public-allowed operations
        
               | [deleted]
        
         | Animats wrote:
         | _Which means, the technical solutions to the questions raised
         | in the original article this responds to, will probably not
         | have time to be implemented before the rush is over._
         | 
         | Especially since those solutions would reduce the influence and
         | revenue of the biggest players. It's like trying to replace
         | Facebook with Diaspora. It's technically possible, and going
         | nowhere.
         | 
         | The article lists success stories for NFTs: "Axie Infinity and
         | how it's bringing entire nations out of poverty"[1] Axie
         | Infinity is a play-to-earn game. It's like Pokemon, with
         | breeding and training and fighting, for real money. Players
         | need about US$1500 to play, and earn Smooth Love Potion Tokens.
         | This really caught on in the Philippines, and people were
         | quitting their day job to play.
         | 
         | The article was from June 2021, when Axie was on the way up and
         | Smooth Love Token was peaking around $0.35. Axie is now a Ponzi
         | on the way down. This morning, Smooth Love Potion Token is down
         | to $0.01897 and dropping.[2] Since all revenue came from new
         | players, this was inevitable.
         | 
         | The NFT market is Axie Infinity, OpenSea, CryptoPunks, and the
         | little guys. As with most things online, the top 3 have most of
         | the market share.[3] Axie is crashing. OpenSea is stalling.
         | Profitable NFT resales aren't happening much, and there's a
         | glut of new issuers.
         | 
         | By the time the problems Moxie points out are fixed, this is
         | going to be over. Especially since for US players there's a 28%
         | capital gains tax rate on collectables resold within 12 months.
         | 
         | [1] https://www.notboring.co/p/infinity-revenue-infinity-
         | possibi...
         | 
         | [2] https://coinmarketcap.com/currencies/smooth-love-potion/
         | 
         | [3] https://bitcoinke.io/2022/01/the-nft-market-in-2021/
        
         | mikeodds wrote:
         | I'm in it for the money if the prices goes up, I'm in it for
         | the art if the price drops
        
           | fivea wrote:
           | > I'm in it for the money if the prices goes up, I'm in it
           | for the art if the price drops
           | 
           | From the looks of it, if the price drops at best we're in it
           | for that sweet sweet URL pointing to Google Drive/imgur.
        
         | doopy1 wrote:
         | You're right that there's a gold rush / land grab happening,
         | but I disagree that there are people who buy NFTs that don't
         | actually want the NFT and see it purely as a speculative asset.
         | I think that the internet world is struggling to define what
         | "digital ownership" means and looks like in the future and
         | there are a bunch of people that are attracted to the idea of
         | NFTs as the answer to that. I think there are lots of
         | motivations for being involved with NFTs, but of course
         | speculation is the most common.
        
           | giantrobot wrote:
           | NFTs don't give you ownership of anything. They're simply a
           | public record saying someone was dumb enough to trade
           | something valuable for something worthless.
           | 
           | Someone posted a link yesterday to an NFT they "own". I saved
           | it to my computer, changed the file name, and uploaded it to
           | a server. They had and have zero agency to stop me from doing
           | so. Their NFT "purchase" didn't transfer any copyrights to
           | them recognized by any entity with means to enforce
           | copyrights. I can do whatever I want with those bytes I
           | downloaded and the owner can't do a damned thing to me.
           | 
           | So what "ownership" do they have? They don't control
           | redistribution. They don't physically possess a thing. They
           | can't assert some sort of exclusionary control over who gets
           | to see a thing.
           | 
           | Some record in a slow expensive database just says a wallet
           | to which they have the private key transferred Geoffrey
           | dollars to another wallet for the contents pointed to by an
           | IPFS identifier. That's one of the more complicated ways I've
           | seen to throw money away but it's not ownership.
        
         | shrimpx wrote:
         | The huge gap between aspirations and technology continues to be
         | the core problem for the crypto space. I keep seeing the excuse
         | "it's still early days", but it's been 14 years since the
         | inception of proof of work blockchains. 14 years is the gap
         | between the founding of Netscape and millions of people using
         | iPhones.
        
         | squabble wrote:
         | A central authority can be advantageous, until it becomes
         | dysfunctional or prioritizes its own interests over the
         | interests of those it serves.
        
           | oblio wrote:
           | Yeah, but real life doesn't really work efficiently with
           | backup plans, that's the problem.
           | 
           | For efficiency what we do is we centralize and wherever
           | possible we add safeguards and controls to the central
           | authority, as auditors call them, mitigations.
        
         | nrjames wrote:
         | You may be correct with OpenSea and Ethereum. The art/NFT scene
         | on Tezos seems different, with maybe 80% of people focused on
         | the art itself and collecting for the sake of holding for
         | personal enjoyment. The prices are much lower, in general, and
         | gas fees largely nonexistent. This makes it easier for people
         | without significant resources to participate. Check out
         | objkt.com, hicetnunc.art, fxhash, etc - the vibe is almost
         | completely different than the Ethereum marketplaces.
        
           | mmmeff wrote:
        
       | chrisco255 wrote:
       | One point about NFT metadata and the debate about whether it's
       | centralized or not.
       | 
       | NFTs don't all have to be maximally decentralized. It should be
       | perfectly okay that some NFTs are not on-chain, purely immutable
       | artwork. Besides the extreme constraints that places on the art
       | (given that data storage on a blockchain not purpose-built for
       | storage is expensive), there are some advantages to having
       | mutable NFTs.
       | 
       | You can create evolving NFTs by making them mutable. Users can
       | upgrade their skins (such as adding a Santa hat during
       | Christmas). The NFTs could respond to real-world events (maybe
       | the weather or the outcome of a sporting event influences the
       | artwork). You can use them as game characters that level up in
       | response to playtime, presumably the artwork for the character
       | would change as the character levels up, etc.
       | 
       | It's very difficult to do the above in an immutable, pure
       | fashion, without thinking of all the possibilities beforehand.
       | It's okay that just the mere ownership transfer mechanic is
       | decentralized. Yes, a project could theoretically rug its users
       | and change the art to a poop emoji, but in practice projects
       | develop a reputation over time and those that foster goodwill
       | stand to gain more from community loyalty than they'd gain from
       | pulling B.S.
       | 
       | Even in the case that a project were to rug its community,
       | however, it's entirely possible for the community to create a new
       | smart contract that "wraps" the NFT as a new NFT (you deposit an
       | NFT from a particular collection, and get back a new NFT and the
       | old NFT is burned). And if enough members of a community rallied
       | around the wrapped version, then it could be treated as a
       | consensus fork.
       | 
       | Escape hatches are one of the features that distinguish Web3 from
       | Web2.
        
       | md_ wrote:
       | The author seems to miss that one of Moxie's central criticisms
       | is that, all else being equal, distributed solutions tend to lag
       | centralized ones.
       | 
       | The reason for OpenSea et al. providing centralized services
       | isn't accidental--it's not that it's "early days"--but that
       | _whenever_ there 's an opportunity to innovate, those innovations
       | will first appear for centralized services.
       | 
       | If we hope for distributed solutions to be _on par_ with
       | centralized, we are in effect hoping for an inefficient market,
       | or one without innovation (giving distributed services time to
       | catch up).
       | 
       | This criticism, in a way, has little to do with "Web3" at all.
       | Instead, it's justification for the _alternative_ solution Moxie
       | has been working toward: one where crypto(graphy, not currency)
       | allows the cost and feature advantages of centralization while
       | preserving (or in fact exceeding) the user privacy of distributed
       | solutions.
       | 
       | (I have _some_ criticisms of Moxie 's vision, but the author
       | seems not to engage with the argument's real substance.)
        
         | practice9 wrote:
         | > The author seems to miss that one of Moxie's central
         | criticisms is that, all else being equal, distributed solutions
         | tend to lag centralized ones.
         | 
         | Distributed crypto offerings do not lag much behind in terms of
         | features, but they are costly and inefficient, which drives
         | most users to centralized solutions.
         | 
         | This creates positive network effects for OpenSea (nft),
         | Binance, Coinbase (crypto trading).
         | 
         | L2 / zk-rollups / validiums have potential to change this
         | balance of power by introducing low-cost, fast transactions.
         | 
         | Which can be achieved by making transaction
         | execution/verification faster through ZK proofs and offloading
         | execution off-chain (without sacrificing security). There is
         | intense competition in the space (zkSync, Polygon Hermez,
         | Starkware, Loopring and others).
         | 
         | Some large players like banks or BaaS companies may create or
         | license their own private rollups.
         | 
         | So far most wallets do not support L2 rollups, I've only heard
         | of Argent supporting zkSync.
         | 
         | This is of course a hybrid solution, not for purists.
         | 
         | Blockchain critics will have fun criticizing it for the next 5
         | years while it scales. :)
        
           | 8note wrote:
           | what would be the time required to add transaction
           | invalidation to the bitcoin blockchain to undo frauduluent
           | transactions?
        
           | md_ wrote:
           | It's a fair point, but it's unclear to me to what extent
           | these hybrid solutions retain the advantages of blockchain
           | and to what extent they give them up.
           | 
           | I'm not at all an expert, but I've been wondering if a world
           | where we all regularly use Bitcoin, but only via large,
           | centralized L2 networks, would be one which feels exactly
           | like the world of today, except (say) Visa or Stripe use
           | Bitcoin instead of...fedwire? I dunno?...for clearance. And
           | as a user, would that actually benefit me?
        
         | TigeriusKirk wrote:
         | >but that whenever there's an opportunity to innovate, those
         | innovations will first appear for centralized services.
         | 
         | This isn't really true, though. Even in the example he gave,
         | NFT royalties, they appeared first in individual NFT contracts
         | before they were on OpenSea.
        
         | groovecoder wrote:
         | This was the part I latched onto in Moxie's piece too: "A
         | protocol moves much more slowly than a platform. After 30+
         | years, email is still unencrypted; meanwhile WhatsApp went from
         | unencrypted to full e2ee in a year. People are still trying to
         | standardize sharing a video reliably over IRC; meanwhile, Slack
         | lets you create custom reaction emoji based on your face."
         | 
         | In the Firefox OS days here at Mozilla, I was a huge believer
         | and advocate for our desire to push web protocols & standards
         | into mobile. But as it turns out, proprietary walled-garden
         | mobile platforms move faster than web standards - who knew?!
         | 
         | But, I like the phrase you used - "hoping for an inefficient
         | market". At this point in my tech career and looking around at
         | what the tech market is doing in the world, I think slowing
         | down and getting less efficient might be good for us?
        
         | tasha0663 wrote:
         | I have a feeling it's more broadly true that centralization is
         | an emergent property of networks. Webs 3 -> n are no exception.
        
       | lordnacho wrote:
       | Reasonable rebuttal to reasonable article. I wouldn't accuse MM
       | of lying, though, I think it's very easy to miss something like
       | whether a thing is normally held on a simple apache VPS.
       | 
       | As for dipping your toes, I'd say it's maybe the hardest area of
       | coding to do that in. Generally I find the documentation is
       | lacking, everything is moving really quickly, there's a huge
       | amount of jargon, and there's a huge number of protocols and
       | standards to read about, with very little authority on what is
       | worth spending time on.
       | 
       | I have a collection of comments in my side projects where I've
       | discovered various surprising things about how blockchain stuff
       | works. Others I know have similar pages of notes on how
       | particular things in the space are arranged.
       | 
       | Moxie captures why this is so: there's a gold rush, and
       | appearances seem to matter more than substance.
        
       | simonebrunozzi wrote:
       | > NFTs are only 3 years old
       | 
       | No they're not.
       | 
       | I co-founded Fabrica.land in 2017, and in mid 2018 we used an NFT
       | to perform a real estate transaction. That's already 3.5 years,
       | and NFTs were already around. The first transaction was a bit
       | "rough", but perfectly valid. Lot of progress since then.
       | 
       | From [0]: The ERC-20 (Ethereum Request for Comments 20), proposed
       | by Fabian Vogelsteller in November 2015, is a Token Standard that
       | implements an API for tokens within Smart Contracts.
       | 
       | Note: yes, ERC-20 has a few flaws [1], and subsequent ERC have
       | improved on it.
       | 
       | [0]:
       | https://ethereum.org/en/developers/docs/standards/tokens/erc...
       | 
       | [1]: https://github.com/ethereum/EIPs/issues/20
        
         | TigeriusKirk wrote:
         | ERC-20 is for fungible tokens, not NFTs, as I'm sure you know.
         | If you want to trace that idea back, you can go to Vitalik's
         | colored coins idea for bitcoin that predates Ethereum all
         | together.
         | 
         | But yes, it's true that NFTs are older than 3 years old. I
         | thought that was an odd statement.
        
           | 70rd wrote:
           | An ERC-20 token with supply of 1 is non-fungible.
        
       | nedstarkin wrote:
       | Holy Moly ---"A lot of NFTs do use Google Drive or Imgur or
       | whatever."---is this true.
        
         | dylkil wrote:
         | Yes, and a lot of people hand their money to lazy scammers who
         | use imgur as the file host
        
       | dmitriid wrote:
       | > Every user will have to pay for everything.
       | 
       | Ahahaha. No.
       | 
       | More seriously: if "everyone" pays it means there will be a few
       | who are going to reap all the profits. Glorious future, indeed
        
         | floatboth wrote:
         | Buttcoiners' "future" is all about financializing everything.
         | They have ZERO claim to "good old web 1.0 decentralization"
         | because the original web was all about information wanting to
         | be free!
        
         | timeon wrote:
         | Well their answer for freedom is chain.
         | 
         | No thanks. Don't chain on me.
        
         | dylkil wrote:
         | those who reap the profits will be network validators, which as
         | of today is ~300k validators[1]
         | 
         | [1]https://beaconscan.com/
        
           | meltedcapacitor wrote:
           | How is ownership distributed? Out of this 300k are 298k
           | aliases of Alice and 2k aliases of Bob? Is there a third dude
           | maybe?
        
       | CPLX wrote:
       | I feel like someone should take the phrase "This is true at the
       | moment, but there is work being done on..." and set it to a
       | catchy melody, since it's clearly the national anthem of the
       | crypto community.
       | 
       | For the verses of the song I would suggest lines such as:
       | 
       | "The proposed solutions solve this"
       | 
       | "But this is not always true, you can"
       | 
       | "We are actively building alternatives!"
        
         | chias wrote:
         | "Toss a coin to your witcher, o valley of plenty..."
        
       | esrauch wrote:
       | > A lot of NFTs do use Google Drive or Imgur or whatever.
       | However, I can promise you that one of the first things people do
       | when making sure they are not rugged (crypto-term for scammed) is
       | to make sure it's not possible for the author to suddenly delete
       | or change the image.
       | 
       | I'm curious about this point; if the only thing stored on the
       | chain is a URL (including Drive/Imgur) then there's no possible
       | way to actually preclude the content from changing right?
       | 
       | It actually does seem very weird that people aren't at least
       | putting a #sha1= in the NFT URL to be able to verifiably know if
       | the underlying content did change.
        
         | superfad wrote:
         | > I'm curious about this point; if the only thing stored on the
         | chain is a URL (including Drive/Imgur) then there's no possible
         | way to actually preclude the content from changing right?
         | 
         | When you use something like IPFS the url is created from a hash
         | of the file contents, so it is not possible to change the file
         | without creating a new url.
        
         | le-mark wrote:
         | > to be able to verifiably know if the underlying content did
         | change.
         | 
         | Indeed that would seem to be the point of the entire exercise!
        
         | vmception wrote:
         | I've seen all of the above.
         | 
         | I've inspected NFT contracts and saw they were designed wrong
         | with a direct link to a website that could go down
         | 
         | And I still minted or bought them because the community or game
         | was interesting
         | 
         | I've also seen extremely clever completely onchain nfts. I like
         | those.
        
         | hakcermani wrote:
         | seems simple enough right .. to add a ?h=HASH_OF_IMAGE in the
         | URL .. maybe the real issue is that fact that the server pr the
         | actual image itself can disappear ?
        
       | [deleted]
        
       | yunohn wrote:
       | > Both of the proposed solutions solve this.
       | 
       | Moxie spoke about how web3 currently works. Not about the
       | hundreds of proposed solutions. And no, proposals don't "solve"
       | anything, until they're actually implemented and tested.
        
         | rainsford wrote:
         | I think it's even worse than that, because a significant part
         | of Moxie's argument is that the current centralized web3
         | approaches have structural advantages (especially speed of
         | innovation) that will leave the "proposed solutions" constantly
         | trying to catch up. And the incredible popularity of the
         | centralized approaches seems to suggest users in the web3 space
         | value those advantages more than they value adhering to the
         | distributed principles supposedly at the heart of web3.
         | 
         | To their credit, the author of the rebuttal acknowledges that
         | the Opensea type approaches are problematic, but misses the
         | greater argument around _why_ they 're popular and why trying
         | to replace them with something "better" will be difficult.
        
         | jack_pp wrote:
         | And adopted
        
       | [deleted]
        
       | syntheweave wrote:
       | I should note that while I don't know of a "illegal image lives
       | on-chain" solution, a solution to "illegal image is sent to your
       | wallet" is found in Grin's Slatepacks: transactions have a
       | synchronous component, so the receiver has to accept them.
        
       | chrisco255 wrote:
       | > This is true, wallets suck so much it's funny. I was sent a
       | PS2k NFT the other day which I can't sell because Opensea has
       | glitched and my wallet won't show me the NFT, which means I can't
       | send it or sell it!
       | 
       | This is not true. An NFT that follows the ERC721 contract
       | standard has a `safeTransferFrom()` function that a token holder
       | can call to initiate a transfer. You do not have to depend on
       | OpenSea:
       | https://etherscan.io/address/0x5754f44bC96F9F0Fe1a568253452a...
       | 
       | You can also use an alternative NFT swapping protocol, such as
       | the ZeroX-backed Trader.xyz: https://trader.xyz/ (fully open
       | source) to initiate a swap.
        
         | tuangeek wrote:
         | https://trader.xyz looks interesting. Do you have a link to the
         | open source project?
        
         | yunohn wrote:
         | Yes, quite ironic that the author denounces OpenSea while
         | simultaneously ignoring that they could actually sell their NFT
         | elsewhere if they wanted to. This demonstrates the value of
         | marketplace centralisation.
        
           | chrisco255 wrote:
           | It doesn't. Just demonstrates how nascent this space really
           | is.
           | 
           | Decentralized exchanges for fungible assets already exist and
           | work extremely well (and I prefer to centralized exchanges
           | whenever possible), such as Uniswap
           | (https://app.uniswap.org/#/swap), Curve (https://curve.fi/),
           | and Sushi (https://app.sushi.com/en/swap).
           | 
           | Decentralized exchanges for NFTs are being worked on. No one
           | has quite nailed the full end-to-end user experience yet, but
           | it will happen. It's inevitable.
        
           | detaro wrote:
           | The problem that the wallet system (which especially the
           | web3-folks push as "you login with your wallet, so easy!"
           | etc), which is very much supposed to be the user agent is
           | hiding it from him, instead of allowing him to interact with
           | it _is_ another failure, even if  "moving to less-broken
           | wallet software" is a solution.
        
             | chrisco255 wrote:
             | The real problem is that showing a user what NFTs they own
             | requires an indexing service.
             | 
             | Each NFT collection is represented by its own smart
             | contract. So the only way to show a user what NFTs they
             | have is to either iterate over all of the ERC721 contracts
             | on the blockchain and iterate over all of the tokenIds
             | calling `ownerOf()` for each one (millions upon millions of
             | tokenIds to iterate through) or to maintain an indexing
             | service that listens for transfer and mint events and
             | updates state continuously for every wallet address.
             | 
             | Another issue is that someone can send an NFT to an address
             | with or without being requested, just like an email can be
             | sent with or without being requested. On cheaper networks,
             | spam NFTs are a real problem. So OpenSea will hide NFTs
             | unless they're from a reputable collection.
             | 
             | In my opinion, OpenSea's key strength is their indexing
             | service. Beating OpenSea in a decentralized manner will
             | require a decentralized indexer. Protocols like The Graph
             | (https://thegraph.com/en/) are an example of how to do that
             | in a decentralized way.
        
         | ruiramos wrote:
         | I guess he depended on Opensea to find someone to sell it to
        
       | yunohn wrote:
       | > "Axie Infinity and how it's bringing entire nations out of
       | poverty" https://www.notboring.co/p/infinity-revenue-infinity-
       | possibi...
       | 
       | No way I can take someone seriously if they think Axie Infinity
       | is saving the Philippines/Vietnam from poverty.
       | 
       | Edit:
       | 
       | Crypto maximalists don't understand history, economics, or
       | globalism. All while claiming that crypto will solve for
       | globalised economies and save people from poverty.
       | 
       | Do they know why these countries are poor? Do they understand
       | colonialism and modern slave labor? Or that colonising countries
       | dictate the global economy and devalue developing world
       | currencies? And that these countries are poor by design, and
       | their weakened economic status is a result of colonial history?
       | 
       | How does a "Play 2 Earn" game that is provably negative sum by
       | making money from fees - where the poor "scholars" have to rent
       | tokens from the rich "lords" and share 30% of their income with,
       | help the poor come out of poverty?
       | 
       | This is crypto colonialism for crying out loud!
        
         | [deleted]
        
         | cfup wrote:
         | I completely agree with you. Crypto bros for some reasons think
         | they are saving the world. The original claim is just pure
         | ignorance. To get start with Axie or other so-called GameFI,
         | players need to have money first. For people with small
         | capitals, they need to participate in 'Guild' and borrow the
         | money from the rich (be it in digital or physical world). So,
         | it is just capitalism all over again. Spending all your time
         | maximizing some games won't save a nation from poverty.
        
         | Mandelmus wrote:
         | See https://news.ycombinator.com/item?id=29716900 re:Axie
         | Infinity and the " saving the Philippines/Vietnam from poverty"
         | bs
        
         | vanusa wrote:
         | _Axie Infinity and how it's bringing entire nations out of
         | poverty_
         | 
         | Yup, that's quite a zinger there. Seriously, what is with these
         | people?
        
         | whb07 wrote:
         | Cringe.
         | 
         | The US was a colony to the UK. Singapore was some shanty island
         | town that even Malaysia did NOT want to take in because how bad
         | it was.
         | 
         | Just like you cannot have a fit body without exercising, you
         | cannot become a prosperous nation without hard work and a
         | predictable rule-of-law. There is no way around it and to blame
         | "colonialism" is nothing but empty words that will help no one.
        
         | TheMagicHorsey wrote:
         | Had the same reaction. Seemed like such a silly thing to say.
         | Does he know what the scale of Axie is and what the scale of
         | national GDPs are? Seems so ridiculous.
         | 
         | But I also don't agree with your characterization of developing
         | nation economies. You have your own blinders on. The degrees of
         | freedom a developing country has are constrained ... but not
         | mainly by outside market forces ... more their own internal
         | institutional structures.
         | 
         | India was isolated from all Western banking for the main part
         | for a long time. Also insulated from competition from Western
         | companies. That was not a good time for India. Turns out your
         | own institutions can fuck up pretty well on their own. Openness
         | and liberalization of an economy also come with complications
         | but these are not "slave labor" and "colonization". I feel you
         | have been exposed to some ideologies but have not actually
         | tried to manufacture something in a developing country and seen
         | the friction that prevents local economies from leveling up ...
         | its not the EU or America stopping Indian manufacturing from
         | leveling up ... its India's own internal complexities.
         | 
         | If it was possible to do what you suggest, Taiwan, South Korea,
         | and now Chinese advanced manufacturing would not exist.
         | Countries just need to get their act together.
        
           | yunohn wrote:
           | A lot of your response assumes I was talking about local
           | manufacturing - but I was specifically talking about poverty
           | and its relation to the globalised economy. Local
           | manufacturing solves some things, not all things. But poverty
           | is a result of innumerable things, of which manufacturing is
           | only a small portion.
           | 
           | There is an inherent arbitrage performed by developed
           | economies through outsourcing, and Axie Infinity demonstrates
           | that wonderfully. Obviously the story would never be "GameFi
           | solves poverty in the USA" because it pays well below minimum
           | wage in developed economies.
           | 
           | Aside: There is no basis in humanity that foreign currencies
           | are significantly lower in value than western currencies.
           | It's purely a result of historical economical forces
           | resulting from colonisation.
        
           | bo0tzz wrote:
           | > its India's own internal complexities
           | 
           | Many of the 'internal' problems in developing nations root in
           | historical colonialism.
        
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