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/biz/ - Business & Finance

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49367462 No.49367462 [Reply] [Original]

Why aren't they very established yet? Also which Blockchain would be the best suited for it?

>> No.49367477

>>49367462
Isn't this the idea behind the Mirror Protocol?

>> No.49368053
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49368053

>>49367477
High fees are apparently an issue. Also picture related

>> No.49369600

>>49367462
It's a bit of a hassle.
Synthetics are superior.
GNS lets you trade like 25 stocks already.
Only hassle is that you need to use leverage.
They're going to lower it though.
The concept is basically that traders on average lose, thus the protocol pays any wins you make out from a pool and said pool grows larger through overall losses of traders.

You just make bets on a chainlink price feed and never actually own the stock.
Just make sure you are better than the average trader on there.

Way less of a hassle with the SEC etc.

>> No.49370125

>>49367462
to answer your question in one sentence: because of a lack of regulatory clarity.
To give a little bit more of an in-depth response: even if regulatory clarity and guidelines come along tomorrow, it would still be very difficult to implement the tokenization of stocks on a classic blockchain. Basically, it would be slow, and not running at that blockchain‘s native speed, ever. People make fun of Cardano for only having one contract interaction per block, but that is actually not that bad. Every other smart contract platform is either an L2 of Ethereum, has a faulty consensus mechanism (AVAX), or does it at an unconventional layer and is closed-source (Hashgraph). For now, synthetic assets are the way to go as they circumvent Gary „Nigger“ Gensler‘s BS. Gtrade or synthetix are good places to find those synthetic assets.

>> No.49371377

no blockchain would be suitable for tokenized stocks, the answer is hedera hashgraph that's perfect for enterprise use and has the hbar foundation to bridge between these enterprises and hedera

>> No.49371394

Something about regulations (Jews)

>> No.49371411

>>49370125
>has a faulty consensus mechanism (AVAX)
Care to explain how Avalanche is flawed?

>> No.49372149

>>49367462
bitcoin

>> No.49372364
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49372364

>>49367462
because self-custody of stocks isn't a thing. When you "own" shares of AAPL thru your broker, you don't actually own it. Shares are registered in your broker's name (on AAPL's books), and your broker loans out your shares to shorts or market makers. self custody of stocks means this could never happen (at least easily), and brokers would no longer be able to make huge profits on security lending. the same lending goes on when you sell a stock and have to wait 2 days to receive cash - this cash is also going out on overnight loans. brokers/banks are TERRIFIED of self custody because it cuts into the bottom line that their entire business is run on. think frac reserve.

>> No.49372768

>>49372364
Interesting anon, thanks. Do you think self custody of stocks could happen in the future?