One thing that helps keep many blockchains secure is something inherent in blockchain technology: decentralization.
The very fact that there are more than one server, in more than one location, running the same version of the blockchain, means there is no one point of failure. A server could go offline in one part of the world, and life on the blockchain would continue on.
If that were to happen to 20 or more servers at once, however unlikely that might be, the good news for HIVE is, there are 100-plus other servers that can step in and keep things up and running.
With all that 2020 has brought us, I've been wondering, though, if such a scenario is indeed so unlikely. Before this year, while I still thought about it, I would acknowledge that there are plenty of things to be concerned about before worrying whether servers might go down at an unprecedented clip.
If this year has taught us anything, it should be that a lot of things are possible, especially things that are not so desirable.
So, if you're of the mind, walk with me awhile as I do some wargaming into areas that might seem out there, unless you do some reading of current events and then stop and think about their ramifications for a bit.
Physical Security
Plenty of time, effort and resources are poured into keeping the blockchain secure. It's essential, tens of thousands of HIVE users have some level of stake and liquid HIVE or HBD sitting on the blockchain, along with a reward pool and a DAO. All of us want our transactions and our accounts to be as secure as they can be.
But what about beyond the security of the blockchain code. How secure are the servers that the blockchain code runs on? Not just from some kind of cyber attack, but from other things.
Like theft. Seizure. Power outages. Natural disasters. Manmade disasters.
As time goes on, and the global economy worsens—take your pick as to how it happens (we're living in the middle of one way, though it will probably still be a combination of things)—I can't help but think that the physical security of witness servers will be even more important than they might be now.
At present, it's a luxury having somewhere north of 150 active witnesses. Since we only need 20-plus one to keep the blockchain going, that might sound like a lot of redundancy.
But what happens when governments decide they've had enough of cryptocurrencies undermining their fiat? We're still not there yet when it comes to full blown physical world commerce—buying groceries at a major food market chain, paying the landlord the rent due, or paying the electric bill—but that is where we plan to be some day, right?
Beyond this phase of crypto pump and dump?
So, how far down the road towards mass adoption do you think governments will allow things to go before they're doing something to undermine it all? Outlawing it, taking it over somehow, hunting down witness servers wherever they may be?
Energy Independence
That used to be a buzzword in the United States. While it didn't really mean supplying all of its energy needs, I am of a belief that the more a witness can be off the power grid, the better. It's a matter of security, but it's also a way to offset costs after an initial investment, obviously.
Having at least a server running on solar power (or whatever alternative energy is more applicable or preferred), seems to make a lot of sense. Some kind of system that isn't dependent on the local public utility.
I don't know what the feasibility of this is. I'm just saying, the less that a witness server depends on electricity from an outside source that is most likely controlled by at least a huge utility company, if not a government, the better.
Peer-to-Peer Internet
Is there a viable solution for bypassing ISPs? There used to be startups working on the solution, but they seem to have disappeared entirely. I run a search and come up with nothing. If you know of one, regardless of its capabilities, please let me know.
Along with getting off the power grid, being able to detach from an ISP is going to be important, too. ISPs are currently owned by major corporations, or sublet from major corporations, and all are under some form of regulation. And all charge for access.
What's to stop them from pulling the plug on certain cyber activities, such as cryptocurrencies? Doesn't seem farfetched to me at all, and not just in areas of the world where it might have already happened, or seems most likely.
The United States is supposedly one of the freest countries on the face of the planet, yet its officials have been cool at best when it comes to crypto. I wouldn't put it past any administration mandating their regulatory commissions to ratchet down on anything that crypto needs to exist.
Decentralizing Exchanges
I've ran a couple of searches in the last six months for decentralized exchanges, and if there are any, they must be pretty small. The big ones that most of use are ran by single entities living in a single jurisdiction where they're subject to the laws of that place.
That means making it more difficult for those who depend on fiat to get more crypto by creating all kinds of regulations. Basically, I'm talking about the masses. The millions upon millions who aren't here yet.
I believe there have been efforts to create some form of decentralized exchange, or peer-to-peer banking. As I said, I couldn't come up with any major exchange that was anywhere close to being decentralized.
It sounds like HIVE-Engine could become an example of some form at least of a decentralized exchange. There needs to be more, or some other means to trade. Centralized exchanges can be shut down, fail, be breached, etc. And they tend to be a costly means of trade, too, something counter intuitive to HIVE users thanks to no blockchain transaction fees.
More Use Cases
When too many blockchains have maybe one use case, the fact that HIVE has more than one is a good thing. But for HIVE, or any blockchain, to be more secure and decentralized, I believe there need to be many, many more use cases.
Depending on how you want to classify a use case, social media on HIVE could be considered one, or many. Add gaming and gambling to the mix. Digitized assets have become a thing. There are community tokens attached to HIVE.
While there's still plenty to do in the digitized space, there's an entire physical world of commerce that isn't anywhere close to being brought to crypto as a whole, let alone HIVE. Bitcoin started to bring major commercial players on board, but when the crypto winter deepened, many of those companies retreated.
Some are starting to come back, but its still a far cry from earning a paycheck in HIVE, or paying your rent with HIVE, or getting groceries at the local Farmer's Market with HIVE. Actually, that last one seems like more of a possibility, given the right co-op of like-minded people.
Instead of just one large macro-economy, this is going to take and be comprised of a myriad of micro-economies. Each with their own set of needs and solutions. Eventually, that will allow for inter-micro-economic trade within a region.
However it happens, it needs to happen, and the sooner the better.
Iron Will
I don't think this topic is the least of it, but it's the last one I will touch on. There are probably others, but they will have to wait for another day.
Just how determined to make this whole cryptocurrency thing work are people? If those pushing forward with any facet of the blockchain are solely in it, or mainly in it because there's some monetary compensation involved, well, that's not going to cut it. Nothing against compensation—we're all here to some degree because there's crypto invovled, even if it's just the cherry on top.
However, what's the motivation? Is it to change the world? Is it to finally wrestle away power from the few and decentralize it among the many? Is it to do away with the middleman, from the banker to the regulator to the government entity, and whatever else might be standing in the way of the completely free use of ones resources?
Is it to fulfill the dream Satoshi started? Governments and centralized banks determine tax, regulation and monetary policy. They manipulate inflation and produce debt. Major corporations mass produce what the masses will use, stifling small business innovation and customization.
Crypto has the ability to overcome all of that, if enough of those behind it have the will to see it through. A crypto winter is nothing, folks, compared to what could be coming. Those who rule are not so oblivious, blind or so prone to hubris that they can't see what crypto is fully capable of if they let it mature.
Technology itself can only go so far. Without greater adoption so that a tipping point is reached, cryptocurrency will not supplant or replace fiat. It will become subservient to it, be destroyed out right, or be made undesirable somehow.
So, when the chips are down, and the situation calls for a backbone and intestinal fortitude, will there be enough, meaning enough of us, to stand up and hold against the onslaught to come?
Or will crypto just be another one of those cool ideas destined to the dust bin of history. Like 8-track tapes and laser discs?
Summation
There's more to consider than just the blockchain code itself. There's a need for more wargaming, scenario hypothesizing, and then working on solutions for the things that seem the most imminent or necessary to secure.