Monday, July 9, 2018

Fiaters not scared

“I don’t know that (custodians) are focused on cryptocurrency; I think they’re more focused on blockchain and distributed ledger technology and their use in operations. They’re joining consortiums that are looking at uses in things like cross-border services, clearing, and settlements. 

OK, let me take the moment to remind fiaters of the finite blockchain liquidity machine.  This is block chain with delete, and fiat swaps on the chain are liquid and guaranteed by the fiat banks.

But liquidity is finite, timed and priced by the monopoly. That is OK, it still works.   You get a thousand trades over a month then you have to trim and clear your blockchain trace a bit. The fiaters run a consortia of trusted miners on the chain.

Then this is great, dump a few thousand into the swap net, trade damn near anything.  This is liquidity relative to swamp nets, which are paced by 'revoke within timeout'. Fast enough liquidity.    When you bet the pits you can trade at ultra high speed and your reserve is observed on the liquidity chain.

The delete and restart keeps the chain short, easy to check, and low risk.  Risk is part of the fiat banks pricing fee.

The liquidity chain is not crypto currency, it is blockchain secured short term, tradeable certificates of deposits.  Blockchain, not cryoto, the account is crypto.  

So make the certificates have some crypto protected value, and still keep them on chain.  Put the encrypted stream inside your plastic card and make it read: "$500 in US dollars crypto protected."  Then everyone treats it like a $500 bill, but it still expires.

Fiaters love this stuff, they collect fees.

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