These are chat archives for ethereum/tutorials

3rd
May 2016
MMPRuser
@mmpruser_twitter
May 03 2016 03:27
Can a stakeholder association own real world securities and money. Like dollars or shares in IBM?
can dollars and shares of IBM be transferable to tokens? I am not quite sure I understand this technology but it seem really interesting
It’s a company bridging the gap between real companies and blockchain dao's
Leonel Castañeda
@leodc
May 03 2016 14:12
Hello Ethereum :)!, my name is Leonel, I'm from Mexico and I'm really interested on using ethereum, I have read a few articles in ethereum.org but I just can't understand how the ether coin can be anything, I mean how I assure to other people that my token value is 2 bars of gold or some physical asset?
Alex Van de Sande
@alexvandesande
May 03 2016 14:34
Hi @leodc
Ether value isn't related to real world assets, but you can use to create tokens and then it's up to you how you link the value of these tokens to the commodity prices.
If you're asking about where does the value of ether itself comes from, then it's an economic question and you are going into the deep rabbit hole of where value itself comes from
Pi Delport
@pjdelport
May 03 2016 14:38
@leodc: If you issue tokens, they only have the value that your reputation gives them.
@leodc: So if you want to assure people that your tokens are backed by gold, then you have to provide enough proof to convince people that you actually own the gold, and that you're trustworthy enough for them to redeem their tokens for gold.
https://dgx.io/ is an example of a company that does this for real gold: you can look at how they do it.
They have regularly-scheduled independent audits by trusted financial auditors of all their physical gold, and so on.
There's a whole process to it: they do a lot of work to establish their trust.
Leonel Castañeda
@leodc
May 03 2016 14:41
Hello @alexvandesande and @pjdelport , ok i get it know, the token is the digital representation of the asset and the link between the token and their physical value is up to me. Thank you for the responses ! and sorry for my bad english :P!
Pi Delport
@pjdelport
May 03 2016 14:43
Yup.
The token represents a cryptographic proof that it was actually uniquely issued by the issuer, and not someone else.
So it assures you that you're not holding a false token from some impersonator.
But the issuer is a separate link to the real world.
They can give the token any meaning, or no meaning at all.
So someone can give you a token and claim that you can redeem it for a hug, but then that's all it's worth. :)
Or they can tell you it's worth a bar of gold without actually having gold, but you'd be a fool to trust them without independent verification that they actually own the gold, and are trustworthy enough to redeem it for the token.
Alex Van de Sande
@alexvandesande
May 03 2016 14:49
Great explanation @pjdelport
Pi Delport
@pjdelport
May 03 2016 14:50
Another example of how the issuer can decide any arbitrary meaning for a token is a lottery.
Instead of each token being worth a set amount, the issuer can issue say a thousand tokens, and say that at a given time, one random token will be redeemable for some reward (and the other tokens will be worth nothing).
So before the prize, you might want to obtain as many tokens as possible, to increase your chances, or even sell the tokens for high values, depending on demand by others.
But after the prize is claimed, the tokens become worthless, and no one will want them.
So the value of a token can be based on time and conditions too.
(Again, you have to trust the issuer to actually give out the prize.)
Leonel Castañeda
@leodc
May 03 2016 14:56
Wow, tokens are really cool
Leonel Castañeda
@leodc
May 03 2016 15:18
Thanks for the explination @pjdelport i can see now xD, and great presentation at DEVCON1 @alexvandesande , I'm going to experiment with ethereum :)!
Alex Van de Sande
@alexvandesande
May 03 2016 15:19
thanks!