, 4 tweets, 2 min read
My Authors
Read all threads
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.
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.
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.
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Balaji S. Srinivasan

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!