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Not only are all those things possible (other than decentralized, because that has a high cost and no tangible benefit) in the normal banking system but there's
by humaniania 6y ago
Not only are all those things possible (other than decentralized, because that has a high cost and no tangible benefit) in the normal banking system but there's apps for them already. And they are from regulated companies and you have legal protections.
- nostrademons 6y agoFlash loans aren't really; nobody will lend you money against zero collateral that you pay back instantaneously after a transaction, because in the traditional banking system there's always a risk of default and a transaction cost for enforcing your rights in case of default. With a flash loan the whole transaction fails if at the end of the transaction you don't have sufficient funds to pay it back, while you're guaranteed payback if it succeeds.
- gamblor956 6y agoA flash loan is a loan you pay back immediately... So you're right, this isn't a thing that exists today outside of crypto because it's not needed outside of crypto. Someone who can pay a loan back as part of the same transaction in which the loan is issued is not a default risk, and in the real world you just don't bother with the loan: you just pay for the underlying transaction directly.
- trident5000 6y agoMaybe people are tired of getting an anal probe just to open an account and move money/ complete financial transactions today?