Interesting People mailing list archives
Re Delaware allows blockchain stock registry
From: "Dave Farber" <dave () farber net>
Date: Tue, 19 Dec 2017 00:46:56 +0000
---------- Forwarded message --------- From: Tom Gray <tom_gray_grc () yahoo com> Date: Mon, Dec 18, 2017 at 7:43 PM Subject: Re: [IP] Re Delaware allows blockchain stock registry To: Dave Farber <dave () farber net> Prof Farber If a blockchain is used to register shares and only their registered owner has the cryptographic key to assign these shares what happens in the cases in which shares are modified outside of the control of the registered owner. Shares may be split or consolidated and the registered owner may wish to sell a portion of these modified shares later. In case of a company takeover. shares can be compulsorily bought if the buying entity gets the approval of a sufficent number of shareholders. There would appear to be a practical necessity for modification of blockchain share holdings outside of the control of the registered owners of the shares. On Monday, December 18, 2017, 6:16:05 PM EST, Dave Farber <dave () farber net> wrote: ---------- Forwarded message --------- From: Karl Auerbach <karl () cavebear com> Date: Mon, Dec 18, 2017 at 5:42 PM Subject: Re: [IP] Delaware allows blockchain stock registry To: <dave () farber net>, ip <ip () listbox com> Bitcoin damaged our perception of blockchain technology. The really useful aspect of blockchain is a effective only-one-at-a-time ownership property. That property allows a blockchain token - for instance a bitcoin - to be used as a kind of money. That that property also allows similar block chain tokens to be used as tokens of ownership (or if one doesn't like the property metaphor, tokens of control.) Thus, for instance there are domaincoins that represent control of a domain name. There equally could be blockchain based tokens to represent various rights to real property - deedcoin? easementcoin? lifeestatecoin? We have had a long history with bearer securities - and almost as long a history of stories of what can happen when they are lost or stolen. Blockchain technology can help with these issues, but that help doesn't pop-up automagically and come into play; it needs to be designed into the particular kind of blockchain token and how it is used, especially, how transfers are recorded in the chain. A simple declaration that Delaware will permit securities to be uniquely represented by a blockchain token is nice, but insufficient. It is like saying "I will build a vehicle using wheel technology." My own guess is that Delaware, following historical patterns, is doing this to add yet another "privacy" bell and whistle to the package of enticements the state offers in order to induce corporations to register in Delaware (and pay Delaware fees and taxes.) But I hope that Delaware really thinks through issues - especially what happens when, as John Levine suggests, the means to unlock those securities-coins is lost. I can foresee problems. One obvious problem is, simply, that if a dispute does arise, the arguments will be mathematical and technical - few judges, and fewer juries will be able to make sense of the evidence. There could be questions whether a loss of access to a coin is self-inflicted, as could happen if a corporate veil were penetrated and liability is being levied on the shareholders. I comprehend the attraction of what Delaware want to offer. But in our modern world, corporate secrecy carries enormous negative social consequences. We should not be encouraging greater means for corporations and their owners to work in something that is even more opaque than the dark web, rather we should be closing those options and make greater efforts for visibility into corporate ownership and actions. --karl-- -- This message was sent to the list address and trashed, but can be found online. at https://www.listbox.com/login/messages/view/20171218174215:AFBCA6A8-E444-11E7-8C62-A7055278A2A7 Archives <https://www.listbox.com/member/archive/247/=now> <https://www.listbox.com/member/archive/rss/247/919563-43e6a31b> | Modify <https://www.listbox.com/member/?&> Your Subscription | Unsubscribe Now <https://www.listbox.com/unsubscribe/?&&post_id=20171218181534:57E62274-E449-11E7-A3F0-87B3EAD5ADAE> <http://www.listbox.com> ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/18849915-ae8fa580 Modify Your Subscription: https://www.listbox.com/member/?member_id=18849915&id_secret=18849915-aa268125 Unsubscribe Now: https://www.listbox.com/unsubscribe/?member_id=18849915&id_secret=18849915-32545cb4&post_id=20171218194714:25D4A636-E456-11E7-A622-C88316C82229 Powered by Listbox: http://www.listbox.com
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