Smart Contracts are Dumb
Bitcoin uses opcode scripts to process transactions and that design of running scripts on every node of the blockchain was expanded to OTHER applications in form of "smart contracts".
The idea was by replacing "flawed" humans with "smart" contracts on blockchains, these new "decentralised" applications will somehow be free of human influences - ignoring the fact that those "smart" contracts are were actually written and maintained by same flawed humans they are trying to replace.
Smart Contract developers claim that their software replace humans,
when in fact THEY are replacing other humans.
There are numerous problems like the efficiency of running the same script on every node worldwide, the ability to change a smart contract that has bugs, or whether there is any advantage over non smart contract techniques. But let's just focus on why "smart" contracts are dumb and "decentralised" applications are centralised.
1. Maximum Attack Surface
Standard protection mechanisms (like encryption, firewalls, locks on doors etc.) worked well and continue to work well because they LIMIT the attack surface. Decentralised applications exposing everything to everyone increases the attack surface to maximum possible - running counter to that fundamental rule.
Giving your data to someone give them power to abuse those data, letting someone process your data on your behalf give them power to abuse you. With dapps, you are giving both data and processing authority to EVERY node on the blockchain - thus subject your data and yourself to the maximum possibility of being abused.
2. Minimum Diversity
The so called "decentralised" applications actually ALL use just ONE centrally design scripting engine. Just ONE hack of that scripting engine and ALL apps on ALL nodes are affected.
There have been and will be centralised weaknesses, like front-running which cannot be fixed no matter how hard people tried.
There have been and will be centralised decisions that go against the fundamental reason for blockchain's existence, like changing the supposedly immutable worldwide ledger due to just ONE dapp.
3. Centralised Application
Centralisation of the blockchain and its script engine is just the start, the so called "decentralised" application running on those blockchains are also highly centralised.
Due to the high costs of running "smart" contracts on every node in the world, only a small part of a "decentralised" application is on the blockchain - the rest of the software are actually centrally controlled, so the promoted "decentralised" VALUE of these applications does not actually exist.
4. Dumb Contract
A contract cannot be called smart when it executes AGAINST the wishes of the people who drafted up the contract.
These contacts are not only dumb (blindly executing whatever they were told), they are also subjected to conflicting Interpretations just like paper based legal contracts e.g. disputes on whether their executions are illegal hacks or legal transfers.
No software can anticipate every possible operation scenarios, different people looking at the same piece of code can see different possibilities and even different purpose.
5. Poor Lineage
Even if Bitcoin has not degraded into a Big Con, retrofitting a single purpose APPLICATION into a general purpose computing PLATFORM is always going to be problematic.
The elegance of the original bitcoin design has been destroyed with numerous parties adding incompatible features e.g. cutting up integrated full node into parts, pushing through unintended volumes, adding privacy to public data, running unsupported applications etc.
Citizen Synergy has been designed from the ground up with novel asset zoning to be a TRUE decentralised computing platform.
- Equitable consensus mechanism (proof of identity) means consensus is requried from everyone not just from the rich (proof of stake).
- On-demand creation of as many blockchains as needed (micro blockchains) means information processing and storage cannot be dominated by any party.
- Provider nodes must reveal their owner identity and physical location, as they should.
- User accounts are linked to different levels of identification for different applications with dynamic aliases.
- User has full control of how data is supplied using progressive fuzzifcation and homomophic encryption.
- User has full control of which nodes are to be used for processing with sovereign transactions and disposable nodes.
- User statistics are kept privatekly with each user which they can contribute optionally in an encryopted manner.
From fundamentals like proof of work and proof of stake though miners and exchanges up to smart contract and token prices, almost nothing is
Looking beyond the greed and ignorance fuelling public blockchains activities
By distributing the control of the online service to the users, Citizen Synergy prevents market manipulation, promotes innovation and adds unprecedented privacy and value to their data. The bank is still needed, but now you have control of that bank.