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Fix typo in 'exploring the new territory' post slug (#1)
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cbeams committed Jul 30, 2017
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layout: post
title: Exploring the new territory
author: Manfred Karrer
redirect_from: /blog/explorering-the-new-territory
banner: null
---
With the recent [Bitfinex heist][1] models for decentralized exchanges have received a bit more attention as usual.

This is a repeating pattern happening every few months after a major incident. And it goes back to _business as usual _after people are entertained by the next soap opera.
This is a repeating pattern happening every few months after a major incident. And it goes back to _business as usual_ after people are entertained by the next soap opera.
So I do not expect that the majority of cryptoland citizens will radically change their behavior. And that has several understandable reasons.
But beside that, **there is lack of awareness for critical problems and lack of visions for possible solutions**.

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But let's first define the term _exchange_ how we understand it, because many people use it with a different meaning:

* The main feature is to _exchange one currency to another. _
* The main feature is to _exchange one currency to another._
* The feature to speculate on price movements, short-selling, hedging or lending are extended features which some centralized exchanges provide, but I think that is outside of the core definition of an exchange.
* How the exchange is implemented, if it uses automatic order matching or how fast the exchange happens are secondary characteristics.
* A Fiat exchange means that national currencies are used, not IOUs for representing them.
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**The blockchain is not good at efficiency but it is very resilient.**
From an efficiency point of view it is the worst, slowest and most expensive database. Only censorship resistance gives it value and significance.

The fact that Bitcoin's efficiency outperforms the bank's efficiency and that they consider the "blockchain" revolutionary, is just because the banks are so _unbelievable inefficient_ and have slept the last 20 years (or longer). They get woken up now by FinTech companies who are now considered "revolutionary" simply by applying modern IT to the banking world. We are witnessing the cheapest revolution of the century.
The fact that Bitcoin's efficiency outperforms the bank's efficiency and that they consider the "blockchain" revolutionary, is just because the banks are so _unbelievably inefficient_ and have slept the last 20 years (or longer). They get woken up now by FinTech companies who are now considered "revolutionary" simply by applying modern IT to the banking world. We are witnessing the cheapest revolution of the century.

Bitcoin will remain alien to banks. Bitcoin is a complete contradiction to their concept and culture.

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Expand Up @@ -189,7 +189,7 @@ With all that said we have to emphasize that **Bisq has already archived a very
* There will be future improvements to decouple the network ID with an optional reputation key.
* Once we can use a SPV Bitcoin Core node instead of BitcoinJ we get rid of the bloom filter problem.

Protection of privacy is not only a [core value of Bisq](/blog/explorering-the-new-territory/) but we see it also as a fundamental property of money to achieve [fungibility](https://decentralize.today/bitcoin-fungibility-the-most-important-feature-of-bitcoin-4b87a381f21a#.nj06fezdn).
Protection of privacy is not only a [core value of Bisq](/blog/exploring-the-new-territory/) but we see it also as a fundamental property of money to achieve [fungibility](https://decentralize.today/bitcoin-fungibility-the-most-important-feature-of-bitcoin-4b87a381f21a#.nj06fezdn).
Bitcoin and the surrounding infrastructure (like exchanges) need to improve in that area so Bitcoin can develop it's full potential as sound money. Sound money for a sound society. Protection of privacy has to be the default state for all, not just a privilege for techies and geeks.

[America's founding fathers](https://en.wikipedia.org/wiki/First_Amendment_to_the_United_States_Constitution) have been more aware of this than today's [retarded politicians.](http://www.reuters.com/article/us-britain-security-rudd-idUSKBN16X0BE)
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