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The ‘truth’ is that you do not have a clear understanding how smart contracts work. All elements can be verified and validated against open source code using th

The ‘truth’ is that you do not have a clear understanding how smart contracts work. All elements can be verified and validated against open source code using the contract’s Bytecode and a contract verification tool like etherscan. I agree, this is a nonstandard legal structure but that doesn't mean it wouldn't work. As I understand, the OP’s goal is to raise money to buy a home, and securitize with an ownership in the home in the event OP cannot pay back what he/she borrows. He/she also wishes to offer funders the ability to liquidate/trade their token. You're right, the owner could sell the house and keep 100% of the proceeds, ignoring the token holders. She would then be in default, the smart contract would automatically execute the legal document, and the new owners could then sue the original owner. You could even set up a listener on the contract to monitor the public record for sales of the specific property to automatically trigger the 'default' function in the contract. Before you ask, it would be the responsibility of the lender to verify the code in the contract actually does this, but it's totally possible.

dragonwriter 9y ago
> The ‘truth’ is that you do not have a clear understanding how smart contracts work The truth is that you don't understand the objection. And, AFAICT, even the rudiments of real property transactions. > All elements can be verified and validated against open source code using the contract’s Bytecode and a contract verification tool like etherscan. I'm assuming the contract is flawless. It's the PDF deed that needs to be verified as legally sufficient before initiating the deal without actually being delivered to the person who must verify it until default that creates an insurmountable verification problem in your scheme. And that's leaving aside the legal sufficiency of such a document in the first place, and leaving aside the question of what form such a deed could take.
- jasonlaramburu 9y ago
  As I’ve said several times, you can easily view the unexecuted pdf ‘deed’ for verification purposes if it is hosted on ipfs and referenced in the contract. You can also validate the contract code itself to confirm that the executed pdf that would be delivered in default will match the unexecuted pdf. Finally, you can be confident that if the contract code is changed in the future, you will know. As I understand, your objection is that current systems are OK, therefore we should not discuss blockchain-based solutions. You’re right, I do not understand that objection.

dragonwriter 9y ago

> The ‘truth’ is that you do not have a clear understanding how smart contracts work The truth is that you don't understand the objection. And, AFAICT, even the rudiments of real property transactions. > All elements can be verified and validated against open source code using the contract’s Bytecode and a contract verification tool like etherscan. I'm assuming the contract is flawless. It's the PDF deed that needs to be verified as legally sufficient before initiating the deal without actually being delivered to the person who must verify it until default that creates an insurmountable verification problem in your scheme. And that's leaving aside the legal sufficiency of such a document in the first place, and leaving aside the question of what form such a deed could take.

jasonlaramburu 9y ago
As I’ve said several times, you can easily view the unexecuted pdf ‘deed’ for verification purposes if it is hosted on ipfs and referenced in the contract. You can also validate the contract code itself to confirm that the executed pdf that would be delivered in default will match the unexecuted pdf. Finally, you can be confident that if the contract code is changed in the future, you will know. As I understand, your objection is that current systems are OK, therefore we should not discuss blockchain-based solutions. You’re right, I do not understand that objection.