Thursday, November 19, 2020

Using Eth chain to manage other ledgers

 Run a stock company inside an Eth contract. Each dollar purchase transfers one digital stock.  The Eth contract maintain account on a block chain separate from Eth. But the correct version of the external chain is recorded on Eth chain and agreed to according to protocol. Thus the stable coin contract can add and delete entries, become a simple consensus database, maybe a short chain.

That is a simple contract, provable and reasonably fast on Eth. Basically it is a queue managers, request to buy and sell the coin come in. The price is always the same. The contract can include exchanges between parties, and change making, rounded to the dollar.

What is that thing?  A mini Swift running on Eth. An ongoing, provable, stable coin. The only variable are the miner fees, and otherwise is non profit.

It becomes a universal utility on the chain, a simple liquid, accurate crypto tax dollars. Its only real function is to count up in integers or count down in integers.

Who owns the Swift hot wallet?  We need a guarantee that some human does not show up at the Swift company office and change the company password.  A trust, I suppose. A trust makes he Swift bank manager part of the authority, and he can be restricted to exchanges on a one per one stock basis only. Use the existing law.

Interesting point. Using the legal trust mechanism we can make Swift obey all the interlocks needed for ledger Swaps in a non-profit situation. In this case, the trusted Swift banker will make sure the stable coin conditions are met before a Swift ledger swap. The trust banker runs as a special trusted miner in the stable coin contract, like an official Oracle.

No comments: