Facebook plans cryptocurrency debut
Can anyone explain what the point of a pegged cryptocurrency is? Since you are dependent on the issuing entity to honour the stated peg, why not just have your balance be an entry in a regular database maintained by that entity? What exactly does the blockchain gain you here?One thing it does _not_ get you is censorship resistance. If the central authority wants to take away coins from a wallet, all it needs to do is to simply state that it will not honour the peg for coins originating from that wallet. This can be tracked by FIFO, dilution or any other stated accounting principle, and renders the balance in that wallet worthless.