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What is the advantage of using the blockchain rather than creating a fully centralized debt exchange?

by jakecrouch 8y ago

scoot 8y ago
Investor buy-in.
TTPrograms 8y ago
A privately owned centralized debt exchange company can go out of business.
- spookthesunset 8y ago
  And one of these can fork itself to leave you stranded if the mob (or top of the pyramid) switch to another more popular fork. You’ll be left holding a bag of worthless tokens. You’ve traded the entire legal infrastructure for mob rule. This project, like all crypto projects, is fundamentally flawed. The only difference is this one somehow managed to con a bunch of VC folk into funding it.
  - TTPrograms 8y ago
    If a blockchain forks you have copies on both forks. What are you talking about?
dharma1 8y ago
I guess easier access to global markets, and reduced counter party risk with the exchange. Having the loans fully or over-collateralised (in the absence of credit scoring and real world debt collection) definitely reduces potential applications though. Congrats on the launch still, great name ;)
bpforster24 8y ago
I'd recommend reading this blog post we put out. It explains better than I can in a short comment: https://blog.dharma.io/dharma-an-open-protocol-for-generic-tokenized-debt-agreements-9a4e6a4e6fc0 https://blog.dharma.io/dharma-an-open-protocol-for-generic-t...
- jakecrouch 8y ago
  I am interested in knowing if there are advantages to using blockchain generally outside of Bitcoin - I don't understand it in this case from reading the post. A centralized exchange could be fully transparent, publishing every transaction, and handle every type of debt, if it wanted to.
  - bpforster24 8y ago
    Censorship resistance is a big factor - since no one entity controls the Ethereum blockchain or smart contracts that have been deployed to Ethereum, there is no way to shut down the service. This paves the way to a single global capital market that is much more inclusive and efficient than the haphazard and heavily intermediated capital markets we have today.
    - spookthesunset 8y ago
      It absolutely is not censorship resistant. It is 100% mob rule. Smart contracts are complete horseshit and this one will be no different. See also: the DAO. Can’t work and never will.

What is the advantage of using the blockchain rather than creating a fully centralized debt exchange?

scoot 8y ago

Investor buy-in.

TTPrograms 8y ago

A privately owned centralized debt exchange company can go out of business.

spookthesunset 8y ago
And one of these can fork itself to leave you stranded if the mob (or top of the pyramid) switch to another more popular fork. You’ll be left holding a bag of worthless tokens. You’ve traded the entire legal infrastructure for mob rule. This project, like all crypto projects, is fundamentally flawed. The only difference is this one somehow managed to con a bunch of VC folk into funding it.
- TTPrograms 8y ago
  If a blockchain forks you have copies on both forks. What are you talking about?

dharma1 8y ago

I guess easier access to global markets, and reduced counter party risk with the exchange. Having the loans fully or over-collateralised (in the absence of credit scoring and real world debt collection) definitely reduces potential applications though. Congrats on the launch still, great name ;)

bpforster24 8y ago

I'd recommend reading this blog post we put out. It explains better than I can in a short comment: https://blog.dharma.io/dharma-an-open-protocol-for-generic-tokenized-debt-agreements-9a4e6a4e6fc0 https://blog.dharma.io/dharma-an-open-protocol-for-generic-t...

jakecrouch 8y ago
I am interested in knowing if there are advantages to using blockchain generally outside of Bitcoin - I don't understand it in this case from reading the post. A centralized exchange could be fully transparent, publishing every transaction, and handle every type of debt, if it wanted to.
- bpforster24 8y ago
  Censorship resistance is a big factor - since no one entity controls the Ethereum blockchain or smart contracts that have been deployed to Ethereum, there is no way to shut down the service. This paves the way to a single global capital market that is much more inclusive and efficient than the haphazard and heavily intermediated capital markets we have today.
  - spookthesunset 8y ago
    It absolutely is not censorship resistant. It is 100% mob rule. Smart contracts are complete horseshit and this one will be no different. See also: the DAO. Can’t work and never will.