, 15 tweets, 4 min read Read on Twitter
Been thinking about #tendermint / #BFT / #Libra and what it means to be a settlement layer vs a MoE layer, and the gradient of crypto finality and how that relates to the centralization of the system and what we might see emerge with #ETH2 as a result.

$ETH isn’t money.
I’ve heard that said many times over by smart people working on the project.

So why does everyone say it is? ETH is simultaneously derided for being bad for tokens but not acknowledged as being great for SC.

Why not money? It gets complicated.
A deep dive into the Libra white paper reveals an interesting tech stack. The two things that stick out to me:

Ability to influence transactions.

Shortcuts the hard stuff by making it centralized. Their model doesn’t have to deal any of the real world hard stuff, like forks.
It makes me wonder about the use cases and thus structure differences. Libra isn’t looking for settlement: true settlement implies censorship resistance if transactions are unmodulated.

A settlement use case is a specific use case for cutting out slop: what’s settled is settled
But libra wants to do medium of exchange and they want fast tps and they are unsurprisingly externalizing the benefits of censorship resistance and decentralization by putting everything ultimately into a centralized solution.

Does a medium of exchange need decentralization?
A lot has to do with where the transaction takes place. MoE on a platform with a centralized arbiter has no need for finality in settlement if they have other means by which to interlope in the exchange.

Why bother with final settlement if you are calling all the shots?
Calls into question the use of “digital currency” whatsoever: it appears to me that they chose to make a digital currency not for any of the properties that make it unique, they could have used a database, I think they did it to exploit legal loopholes and challenge govt power.
Was bitcoin ever going to do what these corporations intend to do with libra? From a technical standpoint, no. From a functional standpoint, no.

Why would they want decentralization and censorship resistance and settlement when all they need is a fast database?
Libra may in part be an undercut to the ethos of bitcoin, but it is also much more as noted above.

Ultimately it reinforces the need for sovereign money and digital assets, and it occupies a market space no sovereign chain could occupy from technical standpoint, now, if ever.
These new developments in BFT and ETH2 seem to be pursuing something outside of the pure value of settlement finality and independence. They are something inbetween for something else.

When the lines are blurred is the use case really there? What is the point?
In closing: I feel like tendermint/eth2/libra are essentially one big compromise of the core principles of crypto for the sake of speed and scalability for a need that doesn’t yet exist before the idea of sovereignty has had a chance to plant permanent roots in the public mind.
So what do you want to support, and why? The pursuit of new science in the areas of BFT coding and sharding by pioneering minds are shaping the direction of civilization unchecked.

That kind of power in science direct to the public hasn’t happened in a long time.
Regulation as a form of investor protection is so laughably outmoded; they probably don’t even understand the nature of the historic compromise unfolding in the pursuit of speed and fueled by the greed of faceless human nature.
I just hope that the slop of settlement that contains the playground for established corporate cronies doesn’t just move to a new zip code under the guise of high TPS.

Fans of crypto have some big important issues to learn about and make up their minds up on, stakes are high.
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