this post was submitted on 18 Aug 2023
546 points (95.5% liked)
Technology
58061 readers
31 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
As already explained, you don't know what you're paying for with an NFT until a trusted authority has said that they are indeed the issuer of that NFT contract. If you can't know what you're paying for on Schwab it doesn't matter if they sell you a classical contract or an NFT. Either Apple said "these people are selling the real deal on this page on their site" or they did not. NFT only really adds the ability to keep tracking the token as it gets resold elsewhere, but this is solvable without blockchains if the market was to implement stuff like federated transparency logs.
In this case, the NFT would only be issued by the actual issuing company or its agent. This is how it works today but instead of NFTs it is paper certificates or, worse, a ledger entry why the issuing agent that is then confirmed with the centralized shared deposit uprise which actually owns most of the real shares. In most cases, especially in the trading platforms where you can execute free trades, you are just a beneficial owner and not an actual owner of the underlying security. With an NFT there would be no need for beneficial ownership at all anymore. It’s not the only way to do it, it’s just a utility like the others you mentioned, but it is a legitimate use case.
But it's achievable without any NFT