Monetary Auth of Singapore My views about blockchain
I will now share my views about blockchain.

It is supposed to be a technology that does not depend on a single party managing the database and its records. It is supposed to be "independent".

To achieve this independence, it uses a technology of replicating the database to many "miners" who have the responsibility of authenticating the database. 

It seems to be a lot of work, with its attendent risks. 

Blockchain has been used for the following:

a) cryptocurrencies
b) NFT - non fungible tokens
c) smart contracts

The first two categories have been used for speculation and ponzi schemes. They have largely collapsed. 

I am not convinced about the value of blockchain for smart contracts. Here are my reasons:

a) It should be possible for both parties to a contract to appoint a trusted third party to be the depository of the contract. This role has been played by independent professionals and govt agencies in the past. It worked well.

b) The contracting parties also have a legal copy of the contract that can be used for litigation in court. Often, there is no dispute about the contract itself. The dispute usually concerns the interpretation of the intent of the contract. 

c) Even if blockchain allows the parties to have proof of the wording of the contract, they still need to go to the courts to sort out their disputes. 

It seems to be going through a lot of trouble and expense to create the "independent platform" to manage smart contracts. 

I do not like blockchain technology. Maybe, it has certain use that I am not aware of.

Tan Kin Lian


 

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