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Why does blockchain have a valid case for "tracking stocks"? We've been doing that for decades. Blockchain is a step backwards in many areas. So what positive b
by esja 4y ago
Why does blockchain have a valid case for "tracking stocks"? We've been doing that for decades. Blockchain is a step backwards in many areas. So what positive benefits does it offer to compensate for its weaknesses?
- csomar 4y agoTracking stock ownership (at least in the US) is both messy and slow. And companies do either make mistake or do not honor their engagements (a la FTX, for example, by not actually having the stock and trying to procure it later when needed). A blockchain solution can make settlements faster, final and prevent the current issues. It also means you no longer need a broker to hold your stocks/assets. More sophisticated users can run their own "wallet".
- newswasboring 4y agoThis is a bizzare comment. To show how Blockchain can help you use the most recent example of Blockchain ecosystem failing?
- matheusmoreira 4y agoA centralized cryptocurrency exchange failed because they gambled away their reserves and suffered a bank run. Nothing to do with the underlying blockchain technology, just good old unregulated banks screwing over everyone.
- codehalo 4y agoYour comment is telling of the lack of understanding of blockchains 13 years in. Unreal. No wonder exchanges and consultancy firms are getting away with baffling the public and businesses with bullshit.
- matkoniecz 4y ago> do not honor their engagements (a la FTX, for example, by not actually having the stock and trying to procure it later when needed). how blockchain would block theft without blocking valid transfer? This requires checking real-world data so all blockchain stuff does not help at all. (the same transfer may be considered as valid or as a theft by different groups of people! See various stories about evacuated gold reserves of countries that were taken over.)
- tiku 4y agoFor one, you can't sell stocks that you don't have, like the Gamestop stock. Also you can own and transfer stock outside of exchanges, like the old paper stocks. Smart contracts could even be used for adding dividend and voting.
- deleted 4y ago[deleted]
- melenaboija 4y ago> For one, you can't sell stocks that you don't have, like the Gamestop stock. You can create derivatives of whatever you want, it does not matter how the underlying is delivered or settled.
- redox99 4y agoOk? But that would clearly be a derivative. Your spot market couldn't be faked.
- melenaboija 4y agoOk? I was talking about buying things “you don’t have”. And the settlement price could not be faked but you need an exchange that offers bid/ask prices and that matches the transactions and that could clearly be faked.
- m00dy 4y agoI recently wrote a derivative protocol for a fintech in Dubai. So, In Defi or blockchain space, you can definitely sell stocks you don't have (a.k.a tokens).
- deleted 4y ago[deleted]
- cuteboy19 4y agoShorting would always happen off chain. As it usually does in the crypto world. So people who want leveraged trades would always do them on exchanges, who can then do the exact same thing as regular exchanges. Basically you can't force everyone to do transactions on chain. The benefit you mentioned only exists if everyone is on chain.