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I don’t see why that is necessary. If a lender were willing to take the risk, which is admittedly significant, there is no reason the ledger would need to be a

I don’t see why that is necessary. If a lender were willing to take the risk, which is admittedly significant, there is no reason the ledger would need to be a legal document. The legal document would be referenced in the contract, with a pdf copy held in escrow on ipfs or something similar.

dragonwriter 9y ago
> If a lender were willing to take the risk, My point is that without something equivalent to a recorded interest, no sane lender is going to be willing to take the risk. Beyond a certain point, the risk is so high that the premium for that risk will price out most of the potential borrowers not intending to exploit the giant legal vulnerabilities in the scheme, which drives the risk premiums higher, which narrows the pool of borrowed even more narrowly on ruthless exploiters, etc. To make it reasonable, it has to be a remotely reasonable choice for legitimate borrowers and lenders compared to other means of borrowing, or other investments.
- jasonlaramburu 9y ago
  People invest in ICOs based on a white paper. Risk is a relative term. I can't think of any other way to invest and trade ownership online in properties you (the lender) curate. Yes, you can buy, sell, trade a REIT, but you are reliant on someone else to select the properties.
  - dragonwriter 9y ago
    > People invest in ICOs based on a white paper. Risk is a relative term. Sure. I'm not saying no one would participate in this scheme in the short term, I'm saying if implemented it would quickly collapse in a storm of abuse. > I can't think of any other way to invest and trade ownership online in properties you (the lender) curate. Yes, but the reasons no system for that exists don't have anything to do with anything that smart contracts solve (again, unless they are legally replacing title registers.)
    - jasonlaramburu 9y ago
      >if implemented it would quickly collapse in a storm of abuse. If the owner sold the house and did not share the profits, he would be in default and would get sued. >the reasons no system for that exists don't have anything to do with anything that smart contracts solve Smart contracts allow you to easily tokenize and trade assets.

dragonwriter 9y ago

> If a lender were willing to take the risk, My point is that without something equivalent to a recorded interest, no sane lender is going to be willing to take the risk. Beyond a certain point, the risk is so high that the premium for that risk will price out most of the potential borrowers not intending to exploit the giant legal vulnerabilities in the scheme, which drives the risk premiums higher, which narrows the pool of borrowed even more narrowly on ruthless exploiters, etc. To make it reasonable, it has to be a remotely reasonable choice for legitimate borrowers and lenders compared to other means of borrowing, or other investments.

jasonlaramburu 9y ago
People invest in ICOs based on a white paper. Risk is a relative term. I can't think of any other way to invest and trade ownership online in properties you (the lender) curate. Yes, you can buy, sell, trade a REIT, but you are reliant on someone else to select the properties.
- dragonwriter 9y ago
  > People invest in ICOs based on a white paper. Risk is a relative term. Sure. I'm not saying no one would participate in this scheme in the short term, I'm saying if implemented it would quickly collapse in a storm of abuse. > I can't think of any other way to invest and trade ownership online in properties you (the lender) curate. Yes, but the reasons no system for that exists don't have anything to do with anything that smart contracts solve (again, unless they are legally replacing title registers.)
  - jasonlaramburu 9y ago
    >if implemented it would quickly collapse in a storm of abuse. If the owner sold the house and did not share the profits, he would be in default and would get sued. >the reasons no system for that exists don't have anything to do with anything that smart contracts solve Smart contracts allow you to easily tokenize and trade assets.