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How can you make something like MakerDAO on a centralized ledger?

• ajkjk 8y ago
  Hey, I only said 99%.
  • magnamerc 8y ago
    True, and I agree that most ICOs are just money grabs trying to sell 'blockchain' for services that don't need one. But decentralized ledgers offer possibilities that weren't possible before, and I suspect that in the next ten years these applications will start to surface.
• Filligree 8y ago
  I have no need for what MakerDAO offers. Do you?
  • magnamerc 8y ago
    Yes, I do. I trade derivatives without the need of a broker. I can also lend DAI to anyone in the world through a smart contract.
    • lawrenceg 8y ago
      It's still too early for most people to understand how amazing the concept around MakerDAO and DAI actually is. They will, but it will take a bit of time.
      • siliconviking 8y ago
        Been hearing about it but must admit I don't fully understand it. Would you mind a sentence or two on why the concept is so amazing?
        • deleted 8y ago
          [deleted]
        • cburgdorf 8y ago
          MakerDAO is basically a community run central bank on the Ethereum blockchain. You can lock away assets you own (currently only ETH but eventually even your house will work as a collateral). By locking away your collateral you can withdraw DAI which will be generated based on your collateral. This is comparable to how banks worked in the past where they only printed money for which they had gold as collateral. You need to at least have a collateralization of 150 %. If you fall below that, your collateral will be seized, the same amount of DAI that you own will be bought from the market and burned. The rest of your collateral minus 13 % liquidation fee will be send back to you. At any time you can pay back your loan in DAI or add more collateral. This mechanism keeps DAI stable at 1 USD. The entire mechanism runs entirely on the Ethereum blockchain. Know why is that cool? 1. You have a 100 % decentralized token that you can keep in any crypto wallet that supports ERC-20 token (Be your own bank) 2. You have a token that isn't volatile so it is safe to pay out salaries or buy groceries with it. Stablecoins that are pegged to Fiat money like the USD still have one centralized aspect though. The currency that they are pegged to is still controlled by centralized organs (e.g FED, European Central Bank etc). The cool thing is, this stuff is just getting started. MakerDAO is just a few month old and pegging to the USD is really just the beginning of a new era. In the long term, imagine you have a stablecoin that is pegged to the purchasing power of North America or Europe or any other region of the world. It's totally possible. The data feeds are the hardest part but there are solutions for that. Imagine having a currency that is pegged to the purchasing power of your region without any governmental control. This is where we are heading.
          • ric2b 8y ago
            How does it monitor the peg in a decentralized, sibyl-resistant, manner?
            • cburgdorf 8y ago
              Price feeds provide the data. They get normalized (removing extreme values) and I think there's some parameters in regard to sensitivity that they can tweak. The trusted accounts for these feeds are voted by all MKR holders. The overall system is very much like a community run central bank.
    • deleted 8y ago
      [deleted]
• cheeze 8y ago
  I don't think anyone is arguing that you can. But most companies who want a ledger don't need a blockchain to accomplish it. In your case, you're talking about no trusted actors in a very decentralized system. We're talking about walmart tracking supply chain and whatnot. For a centralized ledger where you do have trusted actors, blockchain is a hilariously shitty solution.
  • magnamerc 8y ago
    I completely agree. It's almost like blockchains are only useful for trustless decentralized systems.