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I think the greatest barrier here is in verifying the real world house price at exit on the blockchain. I, as an investor, would have to trust someone to verify

I think the greatest barrier here is in verifying the real world house price at exit on the blockchain. I, as an investor, would have to trust someone to verify this for me. At which point it may as well not be on the blockchain.

toomuchtodo 9y ago
The problem I see is that ownership on the blockchain isn't going to be honored by the legal system (similar to deeds, liens, land title, etc), whereas a corporate entity with shares sold would be.
- optimuspaul 9y ago
  I'm sure you could use legal instruments to make the legal system honor the blockchain, but at that point what value is the blockchain providing? More importantly this is venturing into the realm of securities and futures, which is highly regulated.
  - toomuchtodo 9y ago
    Exactly. Until distributed ledgers or blockchains are considered as part of "the law of the land", they have no standing in ownership matters.
    - omarchowdhury 9y ago
      https://newmedialaw.proskauer.com/2017/08/02/delaware-authorizes-stocks-on-blockchain/ https://newmedialaw.proskauer.com/2017/08/02/delaware-author...
      - toomuchtodo 9y ago
        I stand corrected when scoped to Delaware corporate entity law. "Not just any blockchain-based ledger, however, will suffice. For one, electronic corporate records must be capable of being converted into legible paper form within a reasonable time. Second, like all other Delaware stock ledgers, a blockchain ledger must be able to (i) be used to prepare a list of stockholders entitled to vote, (ii) record information required by the DGCL to be maintained in the ledger and (iii) record transfers of stock pursuant to Article 8 of the Delaware Uniform Commercial Code." So a blockchain or distributed ledger technology can be used, but it could just as easily be done using a relational database or paper records.
tom_mellior 9y ago
> I think the greatest barrier here is in verifying the real world house price at exit on the blockchain Also, verifying any of the following on the blockchain: - whether an exit has taken place - whether the person claiming to own a house actually owns it - whether the house even exists - anything concerning the real world, really
thisisit 9y ago
Ethereum's smart contracts can read external data under some conditions using something called Oracles: https://ethereum.stackexchange.com/questions/11589/how-do-oracle-services-work-under-the-hood https://ethereum.stackexchange.com/questions/11589/how-do-or...

toomuchtodo 9y ago

The problem I see is that ownership on the blockchain isn't going to be honored by the legal system (similar to deeds, liens, land title, etc), whereas a corporate entity with shares sold would be.

optimuspaul 9y ago
I'm sure you could use legal instruments to make the legal system honor the blockchain, but at that point what value is the blockchain providing? More importantly this is venturing into the realm of securities and futures, which is highly regulated.
- toomuchtodo 9y ago
  Exactly. Until distributed ledgers or blockchains are considered as part of "the law of the land", they have no standing in ownership matters.
  - omarchowdhury 9y ago
    https://newmedialaw.proskauer.com/2017/08/02/delaware-authorizes-stocks-on-blockchain/ https://newmedialaw.proskauer.com/2017/08/02/delaware-author...
    - toomuchtodo 9y ago
      I stand corrected when scoped to Delaware corporate entity law. "Not just any blockchain-based ledger, however, will suffice. For one, electronic corporate records must be capable of being converted into legible paper form within a reasonable time. Second, like all other Delaware stock ledgers, a blockchain ledger must be able to (i) be used to prepare a list of stockholders entitled to vote, (ii) record information required by the DGCL to be maintained in the ledger and (iii) record transfers of stock pursuant to Article 8 of the Delaware Uniform Commercial Code." So a blockchain or distributed ledger technology can be used, but it could just as easily be done using a relational database or paper records.

tom_mellior 9y ago

> I think the greatest barrier here is in verifying the real world house price at exit on the blockchain Also, verifying any of the following on the blockchain: - whether an exit has taken place - whether the person claiming to own a house actually owns it - whether the house even exists - anything concerning the real world, really

thisisit 9y ago

Ethereum's smart contracts can read external data under some conditions using something called Oracles: https://ethereum.stackexchange.com/questions/11589/how-do-oracle-services-work-under-the-hood https://ethereum.stackexchange.com/questions/11589/how-do-or...