In my opinion the problem is much deeper. Securities, by their definition, are contracts. In other words, they are agreements. They have consequences outside of the virtual domain. For securities to work there has to be some sanction for braking the contract.
Typical conditions for any security is that the management must inform investors honestly. Now, how on earth, we can get a distributed tribunal to judge that? What kind of sanction can be applied in a quasi anonymous habitat where nicks are dime per dozen?
Something like “whoever makes a block with this transaction will be a judge” does not work, because you need some qualifications to be a judge. For instance, judge should not be 12 year old. Please keep in mind that there is no restriction on age of miners.
Topic: Decentralized BTC Stock Market [Goodbye GLBSE] - page 7. (Read 16112 times)
I hope people stop soon with the colored/tainted coins nonsense. There's far too many different uses for the underlying technology for them all to be shared with only 21 million bitcoins (even if you use them as individual satoshis). Its good not just for stocks, but all kinds of other property that needs to have ownership managed.
https://bitcointalksearch.org/topic/chromawallet-colored-coins-issue-and-trade-private-currenciesstocksbonds-106373
https://bitcointalksearch.org/topic/distributed-bond-markets-and-pay-to-policy-outputs-92421
https://bitcointalksearch.org/topic/on-a-decentralized-bitcoin-based-stock-market-52494
https://bitcointalksearch.org/topic/atomic-coin-swapping-112007
https://bitcointalksearch.org/topic/distributed-bond-markets-and-pay-to-policy-outputs-92421
https://bitcointalksearch.org/topic/on-a-decentralized-bitcoin-based-stock-market-52494
https://bitcointalksearch.org/topic/atomic-coin-swapping-112007
This thread is an attempt to answer the following questions, and to mind storm about the possibility of having an open source decentralized BTC stock market protocol/features/design.
It seems that the most challenging problem is in the exchange mechanism between assets and e-currencies such as BTC. For that such decentralized stock market has to operate on top of other block chain "if not on top of multiple block chains", where BTC or LTC message signing can confirm assets movement "buy/sell orders" between different accounts.
- GLBSE is closed, so what is next?
- Is it possible to have a decentralized BTC stock market in the same manner BTC/namecoin operates?
- Is it possible to have a new protocol/block chain where assets "instead of coins" can be created by the asset issuer instead of mining?
- Is it possible that such block chain handles multiple different kinds of assets instead of one kind of coins?
It seems that the most challenging problem is in the exchange mechanism between assets and e-currencies such as BTC. For that such decentralized stock market has to operate on top of other block chain "if not on top of multiple block chains", where BTC or LTC message signing can confirm assets movement "buy/sell orders" between different accounts.
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