According to independent journalist star Ben Swann, cryptocurrency is not valueless, but is backed by radical transparency.
In a six-minute video for his Reality Check segment, Swann went over the key criticism of cryptocurrency by detractors: that it has no inherent value, that is isn’t “backed by” anything such as precious metals. He explained in detail how blockchain technology is instead backed by radical transparency, as each and every movement of the network is viewable by the general public, from its supply, all its transactions, transaction fees, and more. Because of this, public blockchain-based cryptocurrencies garner much more trust than an opaque network such as that of a bank, or precious metal supplies that may be subject to manipulation and dishonesty. On Facebook, where the video has gotten the most attentions so far, it has reached nearly 50,000 views.
Swann, a longtime fan and user of cryptocurrencies, is now sponsored entirely by Dash, allowing him to speak freely rather than fear censorship from controversy-averse media sponsors.
A completely auditable network provides greater trust than a secret system
The prime use case of blockchain technology is to provide a system of accounting that cannot be tampered with or obfuscated. This stands in stark contrast with the legacy financial system, where supply can be inflated at a whim and units of currency destroyed or taken out of circulation either unintentionally or otherwise. Accounting is also susceptible to errors or oversight, such as the US Army losing track of $6.5 trillion in 2016.
With cryptocurrency, a similar lack of records is simply impossible. Additionally, the supply cannot be inflated or altered arbitrarily, and any attempts to do so would be recognized not only by the entire network, but the entire world. Because of this inherent openness, cryptocurrency has generated a certain level of trust compared with fiat currency systems, and with that trust has come value.
Dash’s radically-transparent funding system
One of the inherent features of the Dash ecosystem is the radical transparency of its decentralized autonomous organization (DAO) funding model. Due to its block reward breakdown, Dash has 10% of all new coins created at its disposal for funding various projects including, but not limited to, development. At present, this amount is 6.651.85 Dash monthly, or about $4 million at present valuation. This number is publicly available and auditable, as is every single budget proposal requesting those funds. Every entity paid by the Dash DAO must make a request for funding that is open to be viewed by the whole world, and the movement of those funds is equally visible to all.
This setup takes transparency a step further beyond that of a cryptocurrency-using business or organizations, which may enjoy easier and more thorough accounting transparency through the public nature of the blockchain, however still have to first disclose which transactions and addresses are theirs. In the case of the greater Dash ecosystem, that initial hurdle of requesting the first step of transparency has already been crossed, with public payments straight to the blockchain. While Dash has enhanced privacy features that can render transactions untraceable, and any contractor wishing to anonymize their funding movements after the initial payout are free to do so, this severely complicates acts of bad faith, where a group or organization pledges to use Dash treasury funds in a transparent manner, and later goes against that promise. In those cases, underhanded behavior is easily uncovered.