Any defi instrument backed by an off-chain asset is not forkable, because the off-chain asset isn’t duplicated in the event of a fork.
This observation leads to an interesting conclusion: ETH is no longer easily forkable.
Great essay by @hosseeb and @Lsquaredleland.
This observation leads to an interesting conclusion: ETH is no longer easily forkable.
Great essay by @hosseeb and @Lsquaredleland.
In the Bitcoin civil war of 2017, the main parties were miners, devs, companies.
But if your chain has smart contracts backed by an off-chain asset, there is now a new actor: depositories.
The depositories hold the off-chain assets and thus choose which fork wins.
But if your chain has smart contracts backed by an off-chain asset, there is now a new actor: depositories.
The depositories hold the off-chain assets and thus choose which fork wins.
If we use the approach from Quantifying Decentralization, that means that on at least one axis (forkability) the depositories for widely used smart contracts are the most centralized part of the system. news.earn.com/quantifying-de…
For off-chain assets that are fungible but not forkable (like dollars or gold), we might address this with a level of indirection.
At every point that a smart contract consumed a depository-backed asset, it would failover to another such asset if the original was unavailable.
At every point that a smart contract consumed a depository-backed asset, it would failover to another such asset if the original was unavailable.
