finally, economics explained by cows, so i can finally understand it
Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
31–40 of 55 posts
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#32Brilliant idea, but why the crypto? Couldn't you simply do the collar + web connection... without crypto?
I would imagine local credit is more expensive to access and doesn't have the pre-existing structure to account for more reliable collateral. Another user here[0] says that using cows as collateral is an old scam there. So either this is an expansion of the scam in the worst case (possible) or it's to compensate for the fact that local lenders are trained by interaction to not lend to what looks like the latest scheme (i.e. this well has been long ago poisoned).
e.g. if you go to suburban Japan and you walk by someone on the street who asks you for help and needs to call someone, you may lend them your phone. If the same thing were to happen in SF, you shouldn't. And so, perhaps, if you were a good guy you go ask a Japanese tourist haha! Okay, well the analogy is a little stretched but hopefully you get something out of it.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#33Real World Assets (RWA) is the hot stuff these days. While it is still early the mega-banks are starting to pile on. One of the reasons is that any infrastructure built on blockchain is reusable for free by everybody (minus transaction free). Uniswap and Aave have been chugging along for years and are starting to acquire reputation beyond retail. Privacy is moving along as well where you can tokenize, say, bonds and…
> Real World Assets (RWA) is the hot stuff these days. > Uniswap and Aave have been chugging along for years How hot? I haven't heard of it or them, but that's hardly strong evidence. What do you see? > One of the reasons is that any infrastructure built on blockchain is reusable for free by everybody Does that have an impact? I doubt consumers care about free. They certainly care about high levels of integrity (my m…
The "reusable for free" aspect is about building ecosystems. Abstractions that can be freely integrated with have low barriers to entry to existing complementary systems being updated to integrate with them, or with new systems evolving to wrap them or work in terms of them.
This (plus the fact that blockchain smart contracts are generally limited in size) has the effect of commoditizing much of any given design, instead of keeping it solely in the hands of whoever made it. Things don't remain proprietary; people build their own versions of each contract that are "compatible" per whatever ABI the ecosystem was relying on, and then the ecosystem generalizes its integrations to include those de-facto-ABI compatible systems as well.
And this makes the path from the development of a new experimental + proprietary + closed-world system that requires direct interaction through its own first-party frontend, through to what investment bankers would call "financialization" of the abstraction that system defines as a general-purpose category of financial instrument, very short on blockchains.
This means that in the modern day, there's often far more promise in how financialized a given system is likely to get, when that system starts off as a set of blockchain smart contracts, than when that system starts off as a proprietary brick-and-mortar financial vendor's firm-internal non-market-tradable security.
Meanwhile, the brick-and-mortar fi-tech firm to get their security financialized, they have to convince brick-and-mortar exchanges to carry it for trading; and then other vendors have to come along and copy that success (usually with all the same exchange-side friction + backroom dealings required); and then someone further has to come along and define an abstraction into existence for those live instruments to be reframed in terms of; and everyone has to faff about redoing how their systems work so that those instruments actually fit the abstraction, since the abstraction will be what financial regulations for the financialized security will be written in terms of, and so their own original versions of the security may end up legally non-compliant. And that whole process takes ages — especially if the fi-tech companies push back on the abstraction standard, insisting that their version should be permitted as a MAY option or grandfathered in somehow.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#34Tokenizing physical things is kind of dumb for one reason: it's not trustless and it relies on there being a big mean cop somewhere in the transaction. Say i tokenize my couch and then sell you the the token. Suppose you show up to my house to claim your couch. I can tell you no. You can then sue me and try to get the state to send a big mean cop to get it, or it's equivalent in cash.
I've yet to see a scheme that makes this trustless somehow. If you don't have that you don't have anything.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#35Earlier quoted context omitted.
Not really, I am not saying to remove moneys entirely and use assets trading only, but the money printed or valued should be based on tangible assets, actual cost, not some made up speculation. As I mentioned above, a house that cost 100k to build and handover should never exceed that value plus profit markup, the older it gets, the cheaper it should be, just like any other assets and like how japan did it to solve t…
> money printed or valued should be based on tangible assets The US had such a system before 1914. Money was exchangeable for gold at a fixed rate. That system was destroyed in 1914 with the Federal Reserve Act, and the inevitable result was endless inflation and debasing of the currency. The once common compliment "sound as a dollar" has vanished from the lexicon.
The USD is considered the most sound currency in the world and has been for generations; maybe it's the most sound in the history of humanity (possibly a consequence of modern international relations and communications). The great majority of international transactions are in USD. At small shops in a lot out of the way places, they accept USD; many prefer it to their local currency.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#36"It also includes built-in safeguards that allow the farmer to swap one dead cow for a live one." Is that backwards? If you own the token for a cow, and it dies, what happens?
There’s a credit agreement that will spell out those details: > To turn cattle into trusted financial guarantees or collateral without requiring inspectors to visit the property, Cowmed equips cows with an AI-powered Smarty Collar. These collars constantly monitor health, behavior, and location. The raw data is then converted into an encrypted digital identity tied directly to the B3 credit agreement . [Emphasis mine…
I wonder what opportunities exist for a malicious actor to intercept the data flow and substitute it with their own, either for the purposes of devaluing someone else's cow or to increase the value of their own--or even to generate fake cow biometrics, feed them directly to devices, and pretend you have a real, live herd.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#37Earlier quoted context omitted.
There’s a credit agreement that will spell out those details: > To turn cattle into trusted financial guarantees or collateral without requiring inspectors to visit the property, Cowmed equips cows with an AI-powered Smarty Collar. These collars constantly monitor health, behavior, and location. The raw data is then converted into an encrypted digital identity tied directly to the B3 credit agreement . [Emphasis mine…
I wonder what opportunities exist for a malicious actor to intercept the data flow and substitute it with their own, either for the purposes of devaluing someone else's cow or to increase the value of their own--or even to generate fake cow biometrics, feed them directly to devices, and pretend you have a real, live herd.
It's crypto. Someone will do that.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#38Earlier quoted context omitted.
With what platform? Stripe, Visa and Banks that arbitrarily ban users?
huh? platform? lol. you go to bank with proof of collateral.. get secured loan. wtf does everything need a platform or some VC garbage scrambling to find rent.
Not familiar with the situation in Brazil, but it could be as simple as local credit being harder to get than global credit, or a desire to deal in a denomination that local credit doesn't typically offer without hitting a conversion fee.
A local farmer could perhaps figure out how to contact a swiss banker all on their own, but it would be a lot easier, and cheaper, if there were single place (or better yet, a few competing places) that offer a central place that anyone looking to use/supply credit could come together.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#39Real World Assets (RWA) is the hot stuff these days. While it is still early the mega-banks are starting to pile on. One of the reasons is that any infrastructure built on blockchain is reusable for free by everybody (minus transaction free). Uniswap and Aave have been chugging along for years and are starting to acquire reputation beyond retail. Privacy is moving along as well where you can tokenize, say, bonds and…
Free (minus transaction fee) could be used to describe traditional banking and a lot of other services as well. What will happen if/when this (or any) approach gets really popular is some group will figure out how to control the fee and start ratcheting it up in classic rent-seeking style. Capitalism always finds a way to monopoly.
Re: Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits
#40Earlier quoted context omitted.
I wonder what opportunities exist for a malicious actor to intercept the data flow and substitute it with their own, either for the purposes of devaluing someone else's cow or to increase the value of their own--or even to generate fake cow biometrics, feed them directly to devices, and pretend you have a real, live herd.
It's crypto. Someone will do that.
>local college student sells 11 brazillian cattle to pay off student debt