xx on Nostr: What is the reason for kyc when a pub/priv key can manage both the funds and ...
What is the reason for kyc when a pub/priv key can manage both the funds and contracts? Well, the reason is to decrease the banker’s risk and increase compliance through the ability to punish that person’s trust level and livelihood beyond the contract itself through lawsuits or other restrictions.
Collateralization does not necessarily require kyc, for example, an automated audited smart contract combined with agreed upon oracle data is one scenario. This setup can protect both parties from risk of default or from market changes that affect the contract…without the need for kyc.
How about we all start thinking beyond the legacy constraints of legacy banking and implement a don’t trust, verify attitude towards more than just transactional outputs.
Collateralization does not necessarily require kyc, for example, an automated audited smart contract combined with agreed upon oracle data is one scenario. This setup can protect both parties from risk of default or from market changes that affect the contract…without the need for kyc.
How about we all start thinking beyond the legacy constraints of legacy banking and implement a don’t trust, verify attitude towards more than just transactional outputs.