3 ms·

DeFi's main value proposition is the automation of money. NFTs main value proposition is fractional ownership and assertion of ownership rights in a transparen

DeFi's main value proposition is the automation of money. NFTs main value proposition is fractional ownership and assertion of ownership rights in a transparent manner. Imagine owning 1% of a Drake song - and getting paid 1% of the royalties every time it plays on Spotify. Or creating a yield earning strategy that automatically moves money around based on fixed paramters without ever interacting with a banker or fund manager.

CharlesW 6y ago
> DeFi's main value proposition is the automation of money. That's a potential value proposition of any currency which can be manipulated digitally. Whether it's distributed or not is an implementation detail.
- tcgv 6y ago
  Indeed, but the bar for "automating money" in traditional finance is extremely high due to not only legitimate regulatory reasons but also to large banks and institutions trying to preserve their power/dominance. In DeFi anyone can automate money. For instance, for the past few months I've been building an experimental options exchange [1] in my free time, which would be impractical on traditional finance. [1] https://docs.defioptions.org/ https://docs.defioptions.org/
jonfw 6y ago
The reason we don't have fractional ownership of pop songs is because that's a bad idea, not because we can't figure out how to organize it.
- ac29 6y ago
  David Bowie famously did securitize the rights to his songs for 10 years (1997-2007): https://www.investopedia.com/terms/b/bowie-bond.asp https://www.investopedia.com/terms/b/bowie-bond.asp
- puranjay 6y ago
  Why would that be a bad idea? I don't know a single musician who says that record labels stealing 90% of their work is a good thing.
  - jonfw 6y ago
    I'm not sure what NFTs have to do with record labels. Unless you're saying that the only reason we have record labels is because musicians can't otherwise keep track of who owns their work? Seems like a stretch
thinkmassive 6y ago
Scott Galloway has an interesting take on this, predicting it's only a matter of time before some prestigious institutions and brands jump on the bandwagon: https://nymag.com/intelligencer/2021/04/unified-monetary-theory-beeple-biden.html https://nymag.com/intelligencer/2021/04/unified-monetary-the...

CharlesW 6y ago

> DeFi's main value proposition is the automation of money. That's a potential value proposition of any currency which can be manipulated digitally. Whether it's distributed or not is an implementation detail.

tcgv 6y ago
Indeed, but the bar for "automating money" in traditional finance is extremely high due to not only legitimate regulatory reasons but also to large banks and institutions trying to preserve their power/dominance. In DeFi anyone can automate money. For instance, for the past few months I've been building an experimental options exchange [1] in my free time, which would be impractical on traditional finance. [1] https://docs.defioptions.org/ https://docs.defioptions.org/

jonfw 6y ago

The reason we don't have fractional ownership of pop songs is because that's a bad idea, not because we can't figure out how to organize it.

ac29 6y ago
David Bowie famously did securitize the rights to his songs for 10 years (1997-2007): https://www.investopedia.com/terms/b/bowie-bond.asp https://www.investopedia.com/terms/b/bowie-bond.asp
puranjay 6y ago
Why would that be a bad idea? I don't know a single musician who says that record labels stealing 90% of their work is a good thing.
- jonfw 6y ago
  I'm not sure what NFTs have to do with record labels. Unless you're saying that the only reason we have record labels is because musicians can't otherwise keep track of who owns their work? Seems like a stretch

thinkmassive 6y ago

Scott Galloway has an interesting take on this, predicting it's only a matter of time before some prestigious institutions and brands jump on the bandwagon: https://nymag.com/intelligencer/2021/04/unified-monetary-theory-beeple-biden.html https://nymag.com/intelligencer/2021/04/unified-monetary-the...