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The SEC regulates public companies and ensures they disclose accurate financial information, who leads the company, etc to the public. How does an open protocol
by rpedela 10y ago
The SEC regulates public companies and ensures they disclose accurate financial information, who leads the company, etc to the public. How does an open protocol solve that problem?
- smokeyj 10y agoTake TheDAO for example. The operating agreement and equity distribution is codified on the ethereum blockchain. "Who leads the company" is a global set of public key holders that can direct the contract in real time. Now, this isn't to say an investment is safe because it's accountable and transparent -- but the mechanics that govern the organization is now something that can be put on autopilot without human intervention. The only thing that reduces risk is proper due diligence. Relying on the SEC would be a mistake and I expect this market to be filled by some kind of prediction market (see augur).
- dragonwriter 10y agoGiven what actually happened with the DAO, I'm not sure that's a good example.
- smokeyj 10y agoSome people aren't capable of reasoning in principle. I'm not appealing to them.
- dragonwriter 10y agoIf the facts are out of line with the theory, it's not the facts that are flawed.
- smokeyj 10y ago> Now, this isn't to say an investment is safe because it's accountable and transparent Troll somewhere else bro. You add nothing to the discussion. Write a fortune cookie or something.
- dragonwriter 10y agoThe problem with the DAO is that despite the theory, it was not "accountable and transparent".
- smokeyj 10y agoIt seems you're willfully conflating an implementation with the theory. The success or failures of the DAO has no bearing on the idea of digitizing and decentralizing financial services.