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Comment by illumin8 | Hacker News Reader

You can work on blockchain projects that might have the potential to bring financial services to the unbanked and poor in 3rd world countries, but, oh wait a minute, the technology will probably just be used to create predatory financial products for payday lenders to expand their market...

The best way to make sure you are working on ethical projects is to start and run your own company. Any technology can be used for good or evil. Personally, I do think blockchain has a lot of potential, but the best way to ensure that your technology gets used for good is to design it yourself that way - in other words, build a micro-lending system that helps finance small business owners in 3rd world countries with fair interest rates, instead of building a predatory payday lending system that charges unfair interest rates.

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I have yet to see even a concept, never mind a product, that actually uses a blockchain in a net-positive way, especially for "the unbanked". Universally high transaction fees and slow confirmation times on anything that sees leitimate amounts of use with no clear path towards mitigating this situation, if it's even possible to mitigate at all, combined with several choices of security system each with devastating concequences - from the morally black proof-of-work burning precious resources at a time climate change is already threatening to destroy us, to the morally grey proof-of-stake that simply reinforces the idea that those with the most resources deserve even more resources - makes for something that doesn't seem to have much potential for _good_. The "Unbanked" aren't going to be served by these systems, they need efficient, reliable, and safe systems.

Ironically, it seems the 'banked' have become 'unbanked' after the recent speculative highs and subsequent crash of bitcoin prices.

Even aside from the financial scams, any proof-of-work blockchain project is an ecological obscenity.

Any system that generates value will create an incentive to waste an equal amount to get it. In proof of work all of that wasted energy is on chain, since that's the most efficient way to get the benefit. Every other protocol provides the same incentive to waste work. Just look at how much work financial institutions spend to chase the money released by the US government in the form of debt.

http://www.truthcoin.info/blog/pow-cheapest/

No. You are tragically misinformed. Most systems that generate value incentivize generating as little waste as possible.

There is nothing "efficient" about proof-of-work -- in fact, it's deliberately inefficient because it's a zero-sum game and all the miners have to waste as much electricity as possible to compete with the other miners.

The wasted energy is not "on the chain". It's gone, converted into CO2 poisoning the planet.

Banks may do stupid or damaging things, but they aren't in the business of wasting energy just to prove they wasted it.

Every system of currency creation is a “zero sum game” because someone ends up with the unit of currency and everyone else doesn’t. The wasted energy is on the chain as hashes which are difficult to recreate. These are the basics. Do you seriously think people aren’t wasting energy trying to get their hands on created dollars? And they’re incentivized to waste up to a dollar to receive a dollar.

"Currency creation" is not value-creation. A good currency is a medium of exchange and a unit of account.

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