It's simpler than it seems. Basic Prisoner's Dilemma coding. For purposes of exposition, you are now a node. Ethereum is now textiles.

- You show up online and get in the sewing circle. To do this you have to "stake" a phat chunk of change. For Ethereum, it's 32 ETH.

- Someone in the sewing circle, chosen randomly by algorithm, says "It's time for a new quilt!" This person gets a tip in the form of fabric.

- Everyone knits a bunch of fabric into a quilt.

- Everyone agrees that you have made a quilt.

Note that you have to bring a fuckton of fabric with you to prove that you are a quilt maker in good standing.

Note also that for every quilt you make, you get a little bit more fabric.

Further note that if you slack off and don't make a quilt, the sewing circle takes a little of your fabric.

Note also that whoever tattles on you first GETS YOUR FABRIC.

Finally, note that "making quilts" is substantially more lucrative than "not making quilts" and that "not making quilts" is substantially more lucrative than "lying about making quilts."

I don't understand why it's so different if e.g. Visa gets a cut of a transaction vs. awarding crypto to blockchain tabulators (thus devaluing the currency), which have become increasingly large-scale operations.

It costs a lot more than $300 to compete with Visa.

It's just interesting that crypto turned out to be nowhere near disruptive as promised.

YET

Again, early days.