For the first time in history, it’s possible for anyone with a connection to the internet to quickly and securely send any amount of money, anywhere in the world, at little cost. The advent of permissionless blockchain networks like Ethereum upend our legacy financial systems, and promise to create more economic fluidity than ever before.
Blockchain technology has forced us to rethink about what’s possible during the exchange of value, regardless of that value’s form. The self-executing performance of smart contracts combined with distributed ledger technology underpins this idea. Small pieces of smart code can digitally enable the performance of valuable contractual deliverables without human engagement, helping automate the trustless transfer of our digital assets.
Man, that’s some pretty killer stuff.
In the not-too-distant future, tradable digital assets will include financial instruments like stocks, bonds, and investment contracts of all types and amounts. But why disrupt a financial system that seems to work so well? Does blockchain technology actually solve identifiable pain points that exist during the issuance and trading of securities? Aren’t our global financial systems already adept at handling the efficient exchange of financial assets?
My first article on security tokens covered the industry’s regulatory origins, starting with the Roaring 20’s, the Great Depression, and the Securities Act of 1933. In this article, I’ll cover the reasons why we should care about disrupting an aging securities industry. And where better to start than with a look back at the history of the US Postal Service.Boston Beer and International Mail
Throughout the early 17th century, early colonists in modern-day Massachusetts struggled to share written communication both within and outside the new British colonies.
It was no wonder — many of these early settlers found themselves arriving ...