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I think money transfer was Blockhain Era 1.0 use case. The use case has advanced - very rapidly - to money automation. This is all really new stuff, much of it

I think money transfer was Blockhain Era 1.0 use case. The use case has advanced - very rapidly - to money automation. This is all really new stuff, much of it barely a year old, and it has come so fast that even I've been surprised. A smart contract can currently take your tokenized USD (we'll use USDC since its backed by Coinbase), use that as collateral to borrow ETH on AAVE.com (a lending protocol), use 50% of that ETH to buy up USDC again, use this USDC + ETH to create a liquidity pair on Uniswap, and earning 0.3% fees on any swaps made between USDC and ETH. All in a single transaction.

idlewords 5y ago
This use case is gambling with extra steps, except the software that runs a slot machine is far better vetted for correctness than a smart contract. Without money transfer, this system remains a toy system. With money transfer, it becomes a regulatory bypass. No amount of complexity layered on top fixes this.
- puranjay 5y ago
  Money transfer is impossible to stop as long as P2P exchange exists. My country banned crypto a few years back. I just bought in-person. Nigerian central bank banned crypto recently. Nigerians just exchanged it over Whatsapp The fact that central bankers are busy banning it should give you an idea how disruptive it is.
  - kaladin_1 5y ago
    >> Nigerian central bank banned crypto recently The Nigerian central actually prohibited banks from facilitating or participating in crypto based transactions. You can still trade legally however you want.
losvedir 5y ago
Wat. But... why?
- puranjay 5y ago
  Because its accessible from anyone from anywhere without requiring a sign up or kyc or any of the other hurdles that stop the flow of money and information between legal jurisdictions. A banking and trading account where I can access multiple currencies without ever filling out a form or talking to a sales rep or being from the same country as the banking institution or passing some arbitrary credit check has to be worth something I can’t buy AAPL here in India without going through a broker and clearing kyc and having certain amount of capital. I can buy tokenized AAPL that will sit in a wallet I control at all times, can buy with literally fractions of a dollar, and buy without ever going through a gatekeeper. But again, you’re likely in the first world so it doesn’t matter to you. But here in the third world, people are willing to literally break local laws to access these markets.
dmitriid 5y ago
> A smart contract can currently take your tokenized USD (we'll use USDC since its backed by Coinbase), use that as collateral to borrow ETH on AAVE.com (a lending protocol), use 50% of that ETH to buy up USDC again, use this USDC + ETH to create a liquidity pair on Uniswap, and earning 0.3% fees on any swaps made between USDC and ETH. And... What does this accomplish, exactly? Besides "get rich, quick, in virtual money that, for now, some folks will convert to real money, maybe"

idlewords 5y ago

This use case is gambling with extra steps, except the software that runs a slot machine is far better vetted for correctness than a smart contract. Without money transfer, this system remains a toy system. With money transfer, it becomes a regulatory bypass. No amount of complexity layered on top fixes this.

puranjay 5y ago
Money transfer is impossible to stop as long as P2P exchange exists. My country banned crypto a few years back. I just bought in-person. Nigerian central bank banned crypto recently. Nigerians just exchanged it over Whatsapp The fact that central bankers are busy banning it should give you an idea how disruptive it is.
- kaladin_1 5y ago
  >> Nigerian central bank banned crypto recently The Nigerian central actually prohibited banks from facilitating or participating in crypto based transactions. You can still trade legally however you want.

losvedir 5y ago

Wat. But... why?

puranjay 5y ago
Because its accessible from anyone from anywhere without requiring a sign up or kyc or any of the other hurdles that stop the flow of money and information between legal jurisdictions. A banking and trading account where I can access multiple currencies without ever filling out a form or talking to a sales rep or being from the same country as the banking institution or passing some arbitrary credit check has to be worth something I can’t buy AAPL here in India without going through a broker and clearing kyc and having certain amount of capital. I can buy tokenized AAPL that will sit in a wallet I control at all times, can buy with literally fractions of a dollar, and buy without ever going through a gatekeeper. But again, you’re likely in the first world so it doesn’t matter to you. But here in the third world, people are willing to literally break local laws to access these markets.

dmitriid 5y ago

> A smart contract can currently take your tokenized USD (we'll use USDC since its backed by Coinbase), use that as collateral to borrow ETH on AAVE.com (a lending protocol), use 50% of that ETH to buy up USDC again, use this USDC + ETH to create a liquidity pair on Uniswap, and earning 0.3% fees on any swaps made between USDC and ETH. And... What does this accomplish, exactly? Besides "get rich, quick, in virtual money that, for now, some folks will convert to real money, maybe"