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If I lend you 1 ETH, I have no means to make you pay me back. Smart contracts can't do that either. A smart contract cannot seize 1 ETH from your wallet and s

by lottin 5y ago

If I lend you 1 ETH, I have no means to make you pay me back. Smart contracts can't do that either. A smart contract cannot seize 1 ETH from your wallet and send it back to my wallet. Blockchains are designed specifically to prevent that.

carlosdp 5y ago
That's not true, you can definitely do this with a smart contract blockchain like Ethereum, and there are plenty of loan protocols already that do this in production with $ billions in assets transacted. No one can steal your ETH from your wallet, but they can liquidate your staked collateral held by the smart contract.
- lottin 5y ago
  If the collateral is "held by a smart contract" it means your buying power hasn't changed and you haven't financed anything.