There are important if not necessary uses of the blockchain (encryption ledger) technology that I want to advocate.

Given:

(a) Tokens, consist of nearly infinitely divisible shares,whose clearance depends upon the existence of the network, but does not involve fees by third party ‘transporters’ (intermediaries) who provide no value under electronic money substitutes.

(b) Such shares have no direct voting capacity, only market value. IMO this is the only method stocks should be issued in, since in practice, there is no procedural or moral reason for ownership interest without it’s voluntary transfer by management, or involuntary transfer by the court for crimes of fraud.

(d) Because clearing requires no third parties, and while clearing requires existence of the network to clear, and while that network is not state-insured (and insurer of last resort), no third party must hold temporary title to assets during clearance – meaning that no credit is issued, nor credit rating required (nor legal standing required) in order to use such a system.

(d) I am certain that it is objectively immoral (fraud) to transfer debt packages for the simple reasons that warranty of subjective value (price) is not transferrable.

Therefore,

  1. the primary beneficiary of the use of blockchain shares for remittances will be the poor, credit-unworthy, ex-criminal, who will be free of costs – so long as the state ‘insures’ such a network. The check cashing business is the most beneficial network to replace, since payment in fractional shares requires no credit or escrow for clearance, and therefore no fees. This is a far bigger problem than the middle class understands.

  2. banks that originate loans, and in fact, all loan originators, may not sell or transfer responsibility for those loans, but may sell fractional shares in any loan package. This ends the problem of third party trust in certification of the ‘quality’ of loans.

  3. Public Title Registries that allow transfer and payment are far superior to the poor records kept on assets. There is no reason one does not register nearly all one’s goods. However, some defense from the state and debtors must exist, because it will lead to higher taxation, and other malincentives if openly accessible.

  4. Escrow by two part, simultaneous transfer of title and property eliminates vast holding and clearing fees for asset transfers.

  5. Bypassing the financial system to issue liquidity in order to increase the money supply by direct deposit to consumers is necessary but requires near perfect traceability.

  6. Multiple currencies can be issued by states for different purposes the way ‘food stamps’ and ‘rent stamps’ are issued today.