A Finextra member 26 January, 2016, 13:27 0 likes

Cup half full, or cup half empty?

Bitcoin's trust model is on very shaky ground as China and block size limits are breaking the eco system that keeps bc trusted.  Blockchain companies should be forced to explain their trust model.  If it depends on Bitcoin sidechains, it is in risky territory.  If it uses Proof of Stake or some other alternative to Bitcoin's Proof of Work, then its Maths need to be openly vetted and proven.  If it uses trust between implementers, such as Ripple, then it really isn't a blockchain (at least as exemplified by Nakamoto's Bitcoin).  Blockchain derivatives such as Ripple or some government implementation may indeed prove very valuable, but in my opinion we need a new term for Blockchain-like solutions that do not implement an open trust model.  When a solution relies on trusted entities to operate it, it becomes less of a breakthrough and starts to look more like a database modified to use crypto as an access control model.