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https://warpcast.com/~/channel/hottakes
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Fran
@0x99fran
Chains are never going to be abstracted away. Chains hold assets and people want to know where their assets are. There are >4000 banks in the US. Yet you know which one has your money.
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Suffuze
@suffuze.eth
Hm I disagree. Nobody cares what backend software/services their bank is using to track their balances or what providers they use for security 😎👉 They do want someone to yell at if anything goes wrong though lol
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Fran
@0x99fran
Thats because the backstop to you not losing your funds is not the software/service, but the bank. In contrast, crypto wallet providers aren’t stepping in to save your funds if shit happens. Which means the underlying security of the service/sw you are using matters. Banks live and die by their branding/reputation, so do blockchains and blockchain apps.
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Suffuze
@suffuze.eth
You don't think the banks use software to track your funds and if there's a fatal error or hack to that ledger your funds are safe? There's no way for them to know who has what, not even most of the money is stored, it's lent out 😅 Currently wallet providers definitely arent gonna step up and Idk what the evolution of that will be but I think this is why most funds will have to be on battletested chains like Ethereum or L2s with escape hatches. Maybe I'm wrong though 🤷
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Fran
@0x99fran
I think the entire trust stack is one layer lower since blockchain gets rid of the need for one layer of trusted intermediary. So like before you knew you had your money at the bank on the corner of main. Now you know you have your money on aave on ethereum. The “back end” software that no one cares about is also one layer deeper. The smart contract stuff underneath “aave on ethereum” is what gets abstracted away. The only way that changes i think is if you gets apps that are so bullet proof and trusted across chains that their brand is bigger than the underlying blockchains. Could happen, but i dont think i see anything in the running yet. (I know banks dont actually keep your money but lend it out, equivalent to a back end smart contract. But thats obscured to the average person. Alot of people naively think the money is just sitting at the bank.)
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Suffuze
@suffuze.eth
Yeah it's definitely too early to say lol. Definitely possible that the big institutions come in and fully centralize their stacks anyways with no backdoors just to have better automation and some level of interop for the stuff they approve of. Hoping for a better outcome than that though 🤞
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