cross-posted from: https://lemmy.whynotdrs.org/post/292492

Yesterday, @Hey_Ross discussed on the PP show his thoughts on the true use case of NFTs that scares Wall Street.

---

TLDR: “the real use case is absolutely terrifying to Wall Street. I mean it is the end… of Wall Street…”
"[NFTs are] always about putting the infrastructure in place for decentralized agreements to occur directly between asset owners without a centralized intermediary being there. "

---

transcript

PP: What’s on your mind Ross? Let’s hear it.

hey_ross: So can we talk about blockchain for a second and the NFT stuff, cuz I was listening to the conversation and there is a lot of use cases that were useful to a gamer culture, and interesting from an NFT and asset and, sort of like this notion of you have this digital experience that can be created around a physical good, and I think I wanted to just jump on to just talk about the real use case here. Because the real use case is absolutely terrifying to Wall Street. I mean it is the end… of Wall Street.

PP: And why is that?

hey_ross:

So, let’s – I’m gonna go through a little bit of a knowledge drop real quick. So, original cryptocurrencies and stuff like that were basically a digital currency replacement.

They use complexity and math to be built or resolve, you know, calculations around transactions that occurred on that currency. What Ethereum did is it changed it to create a contract programmable language called Solidity. Solidity is an actual language you can write applications in, so this enabled things called smart contracts. This was profound because you just went from Hey we have another currency that doesn’t belong to a federal reserve, to, now we have an * indiscernible audio * model, so we can * indiscernible audio * any transaction that says things like, Hey, you know, we will actually transfer the money from my account to your account and transfer the title for this house from your ownership to my ownership, when the following conditions are met. It meets the appraisal, the inspection has been cleared, all contingencies related to financing, any holdbacks from the HOA, and you just create all these things as rules in the contract with what the conditions are to satisfy them. The user has to click and validate through a document, and they’ve done it with authentication of identity.

Alright, boom, you’ve just blown up the entire escrow market for real estate.

The GameStop * indiscernible audio * wallet was not really * indiscernible audio * have a dancing baloney or, you know, rick of spades with a banana, right, I have that NFT by the way, it’s not what you think. It’s Rick and Morty. It’s Rick from Rick and Morty holding a spade while a giant chocolate banana dances in front of him. It’s an AI generated one.

But the point * indiscernible audio *, was rules around those NFTs, around how they behave, or is it, an asset should play on open it’s a very simple one. But what can come is profound. Like I want to sell shares of Butterfly.
Okay, who wants to buy them? What are my conditions of sale? Well here’s my asking price and here is the minimum units I’ll sell, I have a limit, I don’t want to sell less than X for, $420,069, or whatever price I want to put on it is. But that becomes a direct transaction where someone wants to meet those conditions, the price, and has the method of payment that I want them to have, in a way that may be deemed validated through a third party * indiscernible audio * in escrow, and then transfer the shares to them.

Boom I’ve just blown up any centralized exchange. You’ve just blown up the entire DTC. You’ve blown up the notion of any centralized exchange holding a registry of assets, as opposed to your wallet itself holding the assets and the rules around those assets. So assets * indiscernible audio * become intelligent, profoundly different than just cryptocurrency.

And so, I think you have this double thing going on here, where the entire world got distracted by NFTs in sort of this hype cycle, you know similar to ICOs, where it’s like, here’s a new coin, boom it’s worth a billion dollars, here’s this bored ape yacht club and it’s worth this amount, – it’s always about putting the infrastructure in place for decentralized agreements to occur directly between asset owners without a centralized intermediary being there. That’s what scares the shit out of the SEC and scares the shit out of the Fed.

And this is the thing that’s blowing their mind is there’s * indiscernible audio * legal framework because the SEC case and a bunch of other things around tokenizing assets have already created the legal framework for this to happen. So now they need to show some sort of impact that really harms people and there’s none there. So, I think they kind of can see it coming. Like I said, the ball is in the air, they’re just waiting for the window to break.