Electroneum is billed as the first AML/KYC-compliant blockchain, and the reason for this and a host of other boasts is due to the moderated nature of the chain. It’s closer to what we all want for cryptocurrencies. It eliminates the 51% attack possible on many cryptocurrencies, as well as block-stuffing attacks. While this still leaves a host of other attacks as possible weaknesses, it remains a step in the right direction.
The moderated nature of the coin means that it can reduce anonymity and prevent some of the scams weaknesses of other cryptos.
The problem that ETN will face is, I believe, similar to what Facebook’s Libra — the fact that it’s moderated by an NGO means that governments cannot control it, and this will make them inclined to refuse to treat it as valid currency. Like self-driving cars, any electronic currency will have to show itself FAR superior to current currencies to be able to gain real traction (pun semi-intended ;)). And if governments and banks can’t control it, then they will do everything in their power to keep it from gaining ground.
Another problem that will face ETN is one that doesn’t affect Libra. The price of the ETN isn’t backed by a basket of real fiat the way Libra is, so it will likely have significant price swings.
One use case ETN has in mind is serving the millions of unbanked globally. It’s a laudable goal, and if it works, may help those in developing nations significantly. At the same time, given that it’s not going to be restricted from use by anyone, one wonders if it will also become just a new means to exploit the ultra-poor.
5campbell 