Why Blockchain Immutability is a Perpetual Motion Claim
Immutability! It's the buzzword that magically transforms a simple database into the next milliondollar VC fundraise. However, most of the projects that advertise this feature are not being entirely honest about just what kind of immutability they're offering. And it's becoming increasingly clear that nearly all of these claims are at best, hyperbolic. So what is immutability? Immutability is the feature of a blockchain that persists data forever, free from censorship and despite the disincentives to do so for some period of time. Typically, "forever". Prior to blockchain,....
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In a permissionless environment like bitcoin, absolute immutability is one of blockchain's greatest strengths. For those who only believe in the permissionless mode of blockchain solutions, there is no need to discuss alternatives. But as industries explore new uses for blockchain beyond cryptocurrency and permissionless systems, there will be situations when that same immutability could make it difficult for the technology to advance. For decentralized cryptocurrency systems, immutability has been crucial in building trust between parties and faith in the system, and that has resulted in....
The blockchain’s immutability, one of its greatest strengths, could also prove to be one if its greatest limitations, given the need to reverse certain activities in financial services, argues Richard Lumb, an Accenture executive, writing in The New York Times. Lumb noted the bitcoin blockchain’s immutable record clashes with evolving privacy laws, such as newly-proposed European Union laws. He also noted that new laws in the U.S. require personal financial data to be easily redacted. He says immutability is becoming a serious blockchain technology issue, one also raised by the recent....
A U.S. federal judge has rejected a motion filed by a former Ethereum Foundation developer over allegations of assisting North Korea to bypass sanctions. Prosecutors claim, Virgil Griffith, aided the regime by providing critical information on cryptocurrencies. Prosecutors Say Griffith’s Speech Was About the Use of Cryptos to Circumvent Sanctions Per Law360, a jury is now set to determine if Griffith violated the International Emergency Economic Powers Act by giving a speech at the Pyongyang Blockchain and Cryptocurrency Conference in 2019. Kevin Castel, a U.S. District Judge, denied....
Regardless of which industry the blockchain is used for, the technology instills trust, transparency, and immutability. At its core, blockchain technology is morally neutral. It does not prefer consumers over institutions or vice versa. Anyone in the world can approach this technology and use it for their own needs. Blockchain technology can be a powerful tool for the wealthy, the poor, and the middle-class. Being morally neutral means the blockchain poses the same hurdles for any industry looking to integrate this technology. However, it is also important not to overstate its current....
Switzerland takes another large step in the direction of a crypto paradise with the introduction of a motion to redefine client deposits, exempting Bitcoin businesses from the stringent financial regulations banks face. Members of the Swiss parliament moved to lessen regulations on Bitcoin- and blockchain-based startups. Federal Assembly member Franz Grüter, along with 23 of his colleagues across several parties, filed the motion last Wednesday (though a vote would likely not take place until the fall). The motion aims to clarify the definition of financial institutions. Currently,....