> why wouldn't you do it on a (performant) blockchain
I don't see value here over JP Morgan Chase operating the market as a neutral third party. Maybe Chase won't really be neutral because they want to steer you to USD and not tokens. But there's gotta be some neutral party that can govern it, something like Coinbase.
Boring old databases and the tech of 10-30 years ago are more efficient than blockchain in all cases, afaik. No matter how efficient, the design of blockchain requires distributed workers verifying each other's transactions. On Chase's server farm, server A can trust server B. All I need is a ledger of how many tokens I have, and a way to convert to USD, the tether of the real world. I can use USD to get into Ether and those 1000 tokens any time I want.
> a 1000 such tokens can interact.
It's basically an API / standard for tokens right? Today I can make an app that uses the IMDB api, but if nobody cares, the app is useless. You can make an app that uses the latest hot tech (raytracing in GPUs) but if nobody likes what you made, it's useless. Same with ERC20, if I understand correctly. I can stand outside Chuck E Cheese and try to make a secondary market in tokens. Nothing illegal about that. Tokens are traded using the hand-to-hand protocol. Yet the number of such businesses is close to zero.
Gift cards for places like Walmart and Amazon are nearly as good as cash on eBay. Nobody buying them is worried about those companies issuing too many cards and crashing the currency.
A bank operating the platform is a good example. It is certainly possible, and people can and have taken the Ethereum Virtual Machine and ran it as a permissioned network. To the extend that we can trust Chase to do it, that would work fine.
But to that I would say that the banks haven't built it, and I don't see it happening or gaining adoption. Whatever they build will by definition not be an open network, and will likely not cross too many geographic borders.
It is sort of inconceivable that some 16 year olds would be allowed to run a lending protocol on the Chase blockchain, or even a random adult, for that matter. Plenty of people would find that positive, no doubt, but it is even hard to imagine a platform being built where companies in say India could get access to on the same terms as those in the US.
Ultimately, the permission-less nature of Ethereum is what has built the DeFi infrastructure we have today, which for all its flaws, is pretty impressive.
I don't see value here over JP Morgan Chase operating the market as a neutral third party. Maybe Chase won't really be neutral because they want to steer you to USD and not tokens. But there's gotta be some neutral party that can govern it, something like Coinbase.
Boring old databases and the tech of 10-30 years ago are more efficient than blockchain in all cases, afaik. No matter how efficient, the design of blockchain requires distributed workers verifying each other's transactions. On Chase's server farm, server A can trust server B. All I need is a ledger of how many tokens I have, and a way to convert to USD, the tether of the real world. I can use USD to get into Ether and those 1000 tokens any time I want.
> a 1000 such tokens can interact.
It's basically an API / standard for tokens right? Today I can make an app that uses the IMDB api, but if nobody cares, the app is useless. You can make an app that uses the latest hot tech (raytracing in GPUs) but if nobody likes what you made, it's useless. Same with ERC20, if I understand correctly. I can stand outside Chuck E Cheese and try to make a secondary market in tokens. Nothing illegal about that. Tokens are traded using the hand-to-hand protocol. Yet the number of such businesses is close to zero.
Gift cards for places like Walmart and Amazon are nearly as good as cash on eBay. Nobody buying them is worried about those companies issuing too many cards and crashing the currency.