One of the distinctive features of the new technology is that it is initially worse than the one that replaces it. I remember that I was sitting in my apartment at some point in the late 1990s and spending the weekend in tearing down CDs in MP3 just to get a difficult engine crash and losing all my data on Sunday night. I had a moment “Why do I do this”, and many of the first buyers of the distinctive shares feel the same way. Then I repeated the operation on the next weekend, because I am a slow learner.
If digital music starts and then ends with NAPSter and Rio PMP-300 (because IykykThen we can forget that. But she did not. It has improved, and now this is what we do. As well as the style that we will see with the distinctive arrows.
Distinguished stocks today are a significantly lower product for a traditional market supply. I have searched through the terms and conditions of eight different services on the series that provide symbolic assets to obtain a good understanding of what is available. Most of them are available in the European Union, one is available worldwide except the United States, and one is available in the United States only.
Although all of these can be considered good efforts, most of the platforms that offer these arrows restrict them in several dull ways and show the basic infrastructure are not truly homogeneous yet. It seems that the restrictions that exist so far as a result of the efforts made to comply with the regulations or unprepared shortcomings in the basic markets (Like a short weekend).
Read more: Paul Brody – Ethereum has already won
For most platforms, trading is available 24 hours a day, but only five days a week. Many symbols carry geographical restrictions and “know your customers” (Kyc)/Permission to transfers. These symbolic offers are rarely voting rights, some of which do not allow profits distribution (Defi) Services either.
Stock trading on the chain today is primitive, and if it can end here, this will be a small market limited to a limited number of customers who cannot reach the main stock markets. Slowly but steadily, I think we will overcome many of these restrictions.
The limits of overcoming it
Take Kyc, for example. Although the KYC rules are unlikely, it becomes uniform, instead of being trading with a small group of people who use the same seller and partner who runs the same KYC process, all small liquidity pools will become interrelable, and actually become a greater liquidity assembly. With deeper liquidity, market makers will come ready to support 24 x 7 trading without any pricing penalty. Increasing organizational maturity may allow voting rights, profits, and deduction tax automation as well.
All these steps will make, in time, symbolic trading is largely similar to traditional stock trading. If we go back to analogy of music, then there is nothing wrong, but hardly a convincing reason for switching. It will attract those who have limited access to stocks today, but if you have assets on the series and check Kyc, the opportunities are good you can actually get a bank account and a mediation account. This means that parity with current offers will not be convincing.
We can already see where the shows are going on the chain, which is more than equal. The last Robinhood advertisement of the Layer-2 on Ethereum included a promise to have distinctive access to private companies such as Spacex and Openai. Moreover, the ability to connect assets on the series on Defi services and use them as a guarantee or lend to more return will bring many users to the market.
Finally, I think there is the ability to really transfer corporate governance. Despite several hundred years of experience, shareholders ’governance leaves a lot to be desirable. Many owners fail to exercise any of their rights. It is not surprising that we can hardly keep up with real policy. However, with smart contracts, the ability to delegate voting rights to experts you trust open a fully new world of enlightened rule.
Early adoption is often driven by users with unique needs and tolerance with risks. This is an ideal example of the entire ecosystems system, including users who have accumulated assets outside the entire traditional financial system.
But with the passage of time, we will get from “because we can” to something much better. When this happens, between 3 and 4 trillion dollars of encryption assets, a few hundred billions of billions will be evaluated in Stablecoins at $ 200+ a trillion dollars in stocks and bonds that can come on the chain. It is only a matter of time.
Relationship: These are the personal opinions of the author and do not represent EY’s views.
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