Trust but Verify: Blockchain Does Both
Trust but Verify: Blockchain Does Both The core challenge of digital currency has been the problem of double dipping. If a user has a digital currency unit and is clever, it is possible to send the digital currency unit to more than one recipient, both of whom would believe it to be legitimate – unlimited at-will digital counterfeiting. That’s no good. The obvious answer is to have a trusted third party who moderates the system to keep everyone in check. This is a perfectly good answer as long as the moderator is more clever than the all nefarious participants now and in the future. Not likely. Sooner or later, somebody will get past the poor moderator. The core of the bitcoin system is to take the role of moderator…
