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Yeah but how does Crypto make stuff happen in the real world? Like a bank can repossess people's houses and stuff and have the law applied. Crypto only has powe
by randomopining 5y ago
Yeah but how does Crypto make stuff happen in the real world? Like a bank can repossess people's houses and stuff and have the law applied. Crypto only has power over what's on that specific blockchains contracts.
- chrisco255 5y agoOn blockchain, the code is the law, for better or worse. It brings a lot of powerful advantages but certainly comes with some tradeoffs. Loans on DeFi today, tend to be overcollateralized, so that a loan's collateral can be liquidated by a "watcher" if the loan goes into default or is at risk of becoming undercollateralized. Arbitration, insurance, etc. can also be recreated on-chain and already exist to some extent although it is quite early days still.