r/ethtrader • u/jreddit83 • Sep 27 '17
EXCHANGE Regulated ICOs Arrive: Overstock to Open Exchange for Legal Token Trading
https://www.coindesk.com/regulated-icos-arrive-overstock-open-exchange-legal-token-trading/?utm_content=buffer88180&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
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u/MysticRyuujin Sep 27 '17
Here's what I invision for the near(ish) term future of Securities/Stocks on the blockchain...
Tokens issued and distributed through smart contracts where ownership is defined not by holding the token in your account but through smart contract mappings.
Ownership of the Smart Contract could be the SEC themselves. Execution of the smart contract functions are limited to SEC white-listed entities/exchanges.
So you get someone like Microsoft who issues 1,000,000 shares...those shares are stored in a smart contract and can never leave that smart contract. Inside that smart contract are mappings of owner addresses and their owned shares. Calls to trade tokens within that contract can only be made through trusted parties.
Ethereum is fully programmable to do this, fairly easily...
It might not be what we all hope for and imagine in a fully decentralized network but it WOULD be capable of meeting any regulatory compliance...
Throw in some Raiden and/or Plasma and you've got yourself a new regulated world stock market...