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For 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
by tiku 4y ago
For 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.