Can you tell me more about asset backed crypto’s? Like what kind of assets are we talking about? Stocks? Real Estate? I’d really like to hear how crypto could be backed by a property.
Well, stocks are easy. Stocks can be linked to crypto and traded directly and securely. With non fungable tokens (NFTs), ownership is 100% directly in the hands of the owner, all done without a middleman/broker/bank/etc.. A "Stock market" would then just be some forum or place of listing where someone wants to trade, say, some amount of GM stock for some amount of Ford stock, or for some other physical or cyber asset, even art can be on NFT (in fact art and collectibles are perfectly suited to NFTs).
For precious metals (or any other physical asset) there would need to be an infrastructure (possible public owned?) that would store physical assets and issue a crypto tied to a specific amount of that stored physical asset. If someone wanted to withdraw that physical asset, the crypto would be destroyed (or its link destroyed) and the physical asset would be handed out to the previous owner of the crypto. That works great for PMs since the infrastructure is mostly already there in the form of Banks (which as we know them now will be completely defunct).
This can be done for any asset for which a trading and storing infrastructure can be created. In a way, that type of infrastructure exists in the form of Amazon, with its distribution centers all over the place. Something similar could be done for many assets, even temporary ones (grains e.g.). Not sure about the viability of that, but its at least theoretically possible.
As for real estate? Not sure. I mean you can tie anything to an NFT. And NFT is like a crypto but it has a unique identifier. So the owner of an NFT that is tied to a specific asset like real estate is the owner of that property. Transfer would be as simple as transferring the NFT. You could trade your GM stock for a piece of property for example by trading the GM NFTs for the real estate NFT. All stored digitally, transferred instantly, no middle man. No banks getting a cut. No government spying on the transaction (maybe). Ownership is undeniable as the owner of the NFT.
How secure is it? I'm not sure, but I know that's a big part of it. I need to do some more research into the technology itself, but it holds great promise as an infrastructure.
As for security, I suspect NFT’s would be as secure as anything currently on the blockchain. No?
I would think so. I didn't mean to imply NFT's as a weak point, but blockchain technology in general as potentially less secure than people think. For example, decentralization, which is the heart and soul of blockchain tech is only a valid defense if there isn't tech to de-decentralize a network. It would be naïve to think such tech doesn't exist. The Patriot Act made such tech legal ffs.
I have not done a deep dive into the tech though, so I really don't have any of my own legitimate concerns. I have read articles that suggest it is less secure than people think. The stated secure features of the systems seem to me to be vulnerable to superpowers (governments et al). In truth all tech is insecure, at least until quantum (entangled) authentication is a fundamental part of the infrastructure, and even then, who knows?
Man, I could geek out in this for hours. You make some solid points.
I’m trying to wrap my head around how the condo I just bought (1 of 10) could be used as backing for crypto. I’m not saying this is impossible, I could absolutely see this being a part of our future economy.
Also, I believe this is where dwac will play a huge roll. For at least the past 20 years in the tech sector, the worlds brightest and best minds have been focused on getting people to click a link. Imagine the pure hell of focusing on nothing but this. Now imagine an entirely new digital world being created as an alternative to the FAANG world. I truly believe the brightest and best will flock to this new frontier reminiscent of the California gold rush. Or it could all get stifled by faggots. But my money is on it being a monumental success long term.
Kinesis is one of a few that exist so far, they have a gold-backed token and a silver-backed one and you can take physical delivery if you have the prerequisite minimum number of tokens.
Can you tell me more about asset backed crypto’s? Like what kind of assets are we talking about? Stocks? Real Estate? I’d really like to hear how crypto could be backed by a property.
Well, stocks are easy. Stocks can be linked to crypto and traded directly and securely. With non fungable tokens (NFTs), ownership is 100% directly in the hands of the owner, all done without a middleman/broker/bank/etc.. A "Stock market" would then just be some forum or place of listing where someone wants to trade, say, some amount of GM stock for some amount of Ford stock, or for some other physical or cyber asset, even art can be on NFT (in fact art and collectibles are perfectly suited to NFTs).
For precious metals (or any other physical asset) there would need to be an infrastructure (possible public owned?) that would store physical assets and issue a crypto tied to a specific amount of that stored physical asset. If someone wanted to withdraw that physical asset, the crypto would be destroyed (or its link destroyed) and the physical asset would be handed out to the previous owner of the crypto. That works great for PMs since the infrastructure is mostly already there in the form of Banks (which as we know them now will be completely defunct).
This can be done for any asset for which a trading and storing infrastructure can be created. In a way, that type of infrastructure exists in the form of Amazon, with its distribution centers all over the place. Something similar could be done for many assets, even temporary ones (grains e.g.). Not sure about the viability of that, but its at least theoretically possible.
As for real estate? Not sure. I mean you can tie anything to an NFT. And NFT is like a crypto but it has a unique identifier. So the owner of an NFT that is tied to a specific asset like real estate is the owner of that property. Transfer would be as simple as transferring the NFT. You could trade your GM stock for a piece of property for example by trading the GM NFTs for the real estate NFT. All stored digitally, transferred instantly, no middle man. No banks getting a cut. No government spying on the transaction (maybe). Ownership is undeniable as the owner of the NFT.
How secure is it? I'm not sure, but I know that's a big part of it. I need to do some more research into the technology itself, but it holds great promise as an infrastructure.
Are you saying my collection of rare Pepe memes might be worth more than Bitcoin? Excellent!
In all seriousness, it does sound like NFT’s are the key (along with a market place). I need to do some more research on NFT’s.
As for security, I suspect NFT’s would be as secure as anything currently on the blockchain. No?
I would think so. I didn't mean to imply NFT's as a weak point, but blockchain technology in general as potentially less secure than people think. For example, decentralization, which is the heart and soul of blockchain tech is only a valid defense if there isn't tech to de-decentralize a network. It would be naïve to think such tech doesn't exist. The Patriot Act made such tech legal ffs.
I have not done a deep dive into the tech though, so I really don't have any of my own legitimate concerns. I have read articles that suggest it is less secure than people think. The stated secure features of the systems seem to me to be vulnerable to superpowers (governments et al). In truth all tech is insecure, at least until quantum (entangled) authentication is a fundamental part of the infrastructure, and even then, who knows?
Man, I could geek out in this for hours. You make some solid points.
I’m trying to wrap my head around how the condo I just bought (1 of 10) could be used as backing for crypto. I’m not saying this is impossible, I could absolutely see this being a part of our future economy.
Also, I believe this is where dwac will play a huge roll. For at least the past 20 years in the tech sector, the worlds brightest and best minds have been focused on getting people to click a link. Imagine the pure hell of focusing on nothing but this. Now imagine an entirely new digital world being created as an alternative to the FAANG world. I truly believe the brightest and best will flock to this new frontier reminiscent of the California gold rush. Or it could all get stifled by faggots. But my money is on it being a monumental success long term.
Kinesis is one of a few that exist so far, they have a gold-backed token and a silver-backed one and you can take physical delivery if you have the prerequisite minimum number of tokens.
It's a start, it has potential, but the infrastructure isn't there yet.
They're working on it and have started construction on a new vault in Lichtenstein.