"Zaldivar said there are still 15 projects in the RSK federation, down from 25 founding members in 2016, though he declined to specify names. If these federation members turn off their servers, with their built-in nodes, the public RSK protocol will not be able to swap bitcoin IOUs for real bitcoin."
No, any miner can dig (merged mining). But not much pools mining does. F2Pool, [BTC.com](https://BTC.com), ViaBTC, Slush Pool I think mine RSK.In short, you mine RSK in the same time as BTC, so you don't need other hardware
Yeah, that's right. But I have a philosophy (someone may not share it) in which we can build solutions together on Bitcoin. These solutions may be weak, but there may be some brilliant ones that will push the technology forward. Like Lightning Network.
Stay away from "stable coins" like this or tether that will just lead to security risks and more headaches. We must temporarily deal with fiat during this transition anyways so there is no need for a 2nd stable coin with added risk
Decentralization is a spectrum, and their stablecoins is far too centralized and insecure for my needs ,
5 reasons why
I would rather use fiat as my stable coin.
This is the sort of stuff that's needed to shift growth from the centralized exchanges and paper trading platforms to a more robust and decentralized ecosystem. Real on-chain bitcoin must be more useful than fake paper bitcoin for meaningful growth to occur.
DeFi will be the growth catalyst in 2020 and 2021.
Soooo salty in this sub against ethereum. It only liquidates 13% right now. It’s not the same as margin trading exactly. Love how the new thing doing well is met with as much salt as the legacy financial system was throwing at bitcoin for the last decade... in the bitcoin sub.
(1) Makerdao maintains a killswitch
(2) You cannot create dai without makerdao's interaction
(3) The dai contract has trusted third parties: the price oracles
(4) Due to poor security practices in makerdao (and dai's usability within compound), anyone with $20M can insta-steal all the dai in makerdao and many of the assets in compound \[[source](https://medium.com/coinmonks/how-to-turn-20m-into-340m-in-15-seconds-48d161a42311?)\].
The point of DAI is to have a trustless stablecoin, which provides the advantages of crypto without the currency risk. It is issued through collateralized loans in order to provide a trustless mechanism to control supply and thereby maintain the peg.
If that's the point, it fails miserably.
It's not trustless, it's not stable, and there is no way to "maintain the peg" for any significant time in adversarial conditions.
It has all of the disadvantages of crypto with none of the advantages.
Some evidence of any of that would be nice. The maker smart contract operates trustlessly, the peg has been maintained perfectly through a 90% drop and has held since. What sort of adversarial vulnerabilities are you referring to?
>The maker smart contract operates trustlessly,
No, it doesn't. It operates entirely by trusting oracles hand selected by the MKR team (and controlled by the token owners, of which can switch it). It has an "emergency switch" that can shut it down if the MKR team deems it worthy of shutting down.
>What sort of adversarial vulnerabilities are you referring to?
- Anyone with enough MKR tokens can switch out the oracles, give a false price, and liquidate everyone.
- During a price crash, the contract cannot liquidate fast enough. This breaks the peg.
But hey, the housing crisis didn't happen for a few years, so I'm sure subprime mortgage backed securities are fine too.
Not really, and you're missing the point. The important difference between Bitcoin and PayPal is not speed, cost, usability (all of which PayPal does better) - it is the fact that Bitcoin is permissionless and censor-resistant. This is true for defi applications as well.
I am setting aside the fact that what Maker is attempting to do (permissionless stablecoin backed by collateralized permissionless loans) has almost nothing to do with what BitMEX does (high leverage options trading).
Anyone with $20M can insta-steal all of the ETH liquidity available in the DAI:ETH pair on uniswap \[[source](https://medium.com/coinmonks/how-to-turn-20m-into-340m-in-15-seconds-48d161a42311)\]. The uniswap contract is not censor-resistant. What's worse, it's on a censorable platform: transaction censorship has happened on Eth in the past (the Dao fork), censorship can happen on Eth again, and censorship only becomes easier if Proof of Stake ever happens. (Fortunately for Eth and its victims, Proof of Stake won't launch in the foreseeable future.)
I don't think I'm a shill, but it seems like that's the label for anyone that isn't a BTC maximalist around here. I fell in love with Bitcoin in 2013 (feel free to check), and I've worked in the industry for 5 years (and not for an Ethereum-related project).
Maker itself is censor-resistant. The govt could shut down the maker foundation, jail the devs, and the system would continue to work just fine. That is not to say there aren't improvements to be made - much like Bitcoin.
How will it work without oracles? Why are you okay with entrusting your money to anonymous oracles who have every incentive and opportunity to manipulate the price of dai and enrich themselves? If MakerDao is decentralized, how do you expect to keep the names of the oracles a secret? And why can't you know who they are?
Face it, dai is a permissioned asset. The oracles can prevent you from minting any dai, and if they decide you don't deserve any (especially under pressure), they can crash the price of dai after you've obtained it, and steal millions in the process.
How is this completely on chain? The CDP and Maker Platform which control the pooled asset to create dai are not on chain for eth or btc. Am I missing something? This seems more like a sidechain to me that is settled on the main chain, much like lighting does.
No, there is no eth side chain. DAI is a coin on the ethereum network under the erc20 standard. It’s generated using smart contracts and the eth collateral is also held using smart contracts. There is no side chain.
Oh for bitcoin like the post says, I think it would need to be a process for wrapping btc. I’ve seen ethereum based exchanges that allow you to exchange wrapped btc. It’s likely going to be wBTC that is used for collateral but maybe not.