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RE: Why steem engine is not a replacement for SMT
as those would need to fully rely on the issuer to keep their service up and not act malevolently.
Thanks for this post.
May you clarify it to me how steemEngine's tokes relly only on issuer?
There are no miners/witnesses? All the data related to blockchain are stored in one place? What happens if SteemEngine stops working?
Sorry if those questions are amateurish, I would like to know, but not that much to find it out for myself :D
Data is stored on the blockchain, in custom json transactions.
But as anyone can submit custom json as they like, that needs to be validated (is the sender really in possession of what he's claiming to send). Validation is happening centrally at steem engine. If they stopped working it would not be clear who can validate, as there is no consensus mechanism. From that moment the tokens are unusable. There are different options what could happen then
End-user validation of embedded consensus works fine and is in fact highly decentralized since validation is the responsibility of every single user and not some potentially-centralized set of validators. Any custom_jsons that violate the consensus rules can simply be ignored. It would mean that the user spent RCs to send a custom_json that does nothing at all. In fact this still relies on Steem's own witnesses to determine and finalize the order of those custom_jsons (since changing the order may change validity), which what happens now.
The most used token in the world, Tether, works this way. It is implemented using Omni, which is an encoding layer on top of Bitcoin. Nothing prevents people from submitting invalid Omni data to Bitcoin, since Bitcoin nodes don't even know anything about it, but the Omni nodes (including those run by exchanges) will ignore/reject it.
I don't know that steem-engine works this way, I've been told conflicting stories including by people who I would expect to know what they are talking about, so I find the whole thing quite perplexing.
Lack of a clear and well-communicated story on how it actually works is perhaps a better reason why it isn't ready for prime time than any clear technical obstacles, but I'm kind of guessing here, for this very reason.
Thanks for choking on and providing this very valuable input!
As @inertia mentioned they are working on the decentralization, and with that comparison in mind it seems very doable to end up with a completely legitimate product in the near future.
Hm... Am I too old, too conservative or simply cautious?
In the "broken banking systems" there are laws, regulations, guarantees, plans if something goes wrong - and it's bad
In the crypto world, like this case for example, it's just a matter of trust. We will provide the services, we sware to god.
If this is true what you say, I'm... Speachless...
In true crypto projects (Bitcoin, altcoins including steem and somewhere in the future SMT) trust is not necessary. Everything is written in code, so there's no need for laws besides what the code dictates.
From that point of view, steem engine is not a crypto project, they just use a blockchain as their database (or to be more precise: as a publicly visible backup for their own, traditional, database).
I think the word you are looking for is...intelligent (that's totally lost on ideologues).