Hi Pankaj,

Any financial system that suffers from widespread and continuous frauds, scams and hacking can be said to suffer from drawbacks.

It is the result of ill-considered implementations of blockchain in the rush to be first in line to attract capital, fame and glory — as is the case throughout history with any green field.

What we are seeing now is just history repeating itself due to human nature. It is not necessary a vindication of blockchain as an inadequate technology. What it is though, is an indication of ill-considered use cases and software. For example, as I’ve mentioned in the article, surely the blockchain bridges that have been repeatedly hacked across different DeFi startups is a sign of weak and vulnerable software from the security standpoint. Would any other system that have been hacked just as frequently not been consider so by any reasonable person in the tech world? Or is crypto and blockchain somehow an exception to the normal standards of cybersecurity needed for use in financial institutions?

That said, my story is not a criticism of blockchain or DeFi. As you’ve said, what Satoshi sparked off as a movement is still intact and evolving, but it will need to evolve further to stabilize into something the mainstream and public can safely rely on. This is always the case with any new innovation or technology.

So no, blockchain is not a fraud (IMHO). The weak implementations in terms of software and use cases that we are seeing falling apart now are the fraud.

Cheers,

Lance