http://syscoin.org/syscoin-shade-update/
I don't exactly know how they escrow works, however I got interested simply because of this
Escrow history provides a forge-proof, implicit method of building reputation on the Syscoin network.
Since reputation systems have been talked about in the past but we never came up with a solution that doesn't require KYC stuff.
Reputation systems could open the door to a whole number of other things. We still have lots of stuff to do first, but would like to know what you think about this and how we could use it.
Bitnation solved the identity problem.
https://www.ibtimes.co.uk/bitnation-estonian-government-start-spreading-sovereign-jurisdiction-blockchain-1530923
But that reveals your identity which some people might not like it. It's just as monsterer describes where people are onymous.
This is something that wouldn't need a rep system..
What if and bare with me this is a very specific example for lending and something that came out of my head, hope it isn't too stupid.
Alice wants to borrow X BTS.
Bob pretends to lend X BTS so he can earn some interest.
Bob would send the X amount of BTS to a multi signature account.
This multi signature account would be controlled where someone like Y Witnesses would need to sign the transaction to send it to Alice.
Bob would fill a memo or sign his original transaction with the following information:
[Single account receiver (Alice in this case)]
[Time of the loan]
[Markets where these funds could be traded and used]
[Loss Tolerance (minimum price at what Alice is allowed to trade the X BTS for)]
[Collateral for loss tolerance (Alice would need to lock this amount)]
This by default would only Alice to use those X BTS in specific markets Bob has allowed. They couldn't be exchanged to any account directly or any other markets.
Now two of the following situations could happen:
1) Alice makes profit
2) Alice looses money
If 1), a percentage of the profit would immediately be sent to Bob (sheduled and recurring payments would enter here I guess. Whatever, a smart contract would be able to do this right?)
Alice gets to rinse and repeat as long as she has a profit.
If 2), Alice is at a loss and whatever Alice has traded Bob's X BTS for - let's say, she traded at a loss and managed to get 100bitUSD instead of 105.
Bob immediately gets the 100bitUSD sent to his account + the needed amount from the collateral (5bitUSD worth of BTS)
You may noticed I mentioned a multisignature account in the middle of all of this. I originally thought about witnesses forcing Alice to send funds back to Bob but with scheduled payments I guess this isn't worth it? I lost it in my train of thought lol
This would allow people to borrow without needing to place a huge amount of collateral and allow the lender to still retain some control of the situation. Borrowers with not that much money could make more money more easily. Lenders are kept safe and can't loose money.
I don't know if I covered all possible situations so if this even makes sense, it's probably still exploitable. Let me think as I write...
if 1), rinse and repeat, profit for both till the time of the loan ends
if 2), Alice can't trade beneath the limit established by Bob at [Loss Tolerance], meaning alice could never do a trade where the price is < [Loss Tolerance] or a percentage under [Loss Tolerance] if it was set in percentages..
humm.. alice still needs a decent price range to do her trades so a tiny window for that, meaning a small Loss Tolerance percentage wouldn't allow for much profit. Risk is smaller. Alice's collateral is smaller.
Higher Loss Tolerance percentage means more Alice from collateral. Apparently no risk for Bob has long as Alice has enough collateral to be forcefully called back to Bob via scheduled payments? Maybe that multi sig account with Witnesses could have a role here? Or maybe create another position "Escrows" whose only purpose were to ensure this?
I'm just thinking out loud, don't know if this even makes sense. It seems to do to me but at the same time it was too easy and someone would probably have already thought about this so... It was one of that moments when you think you have a great idea but is obviously flawed because someone would have already come up with this... even if this is flawed it could spark some ideas. Just a small attempt. I don't understand much about technical stuff so I dont even know if this is feasible. Correct me, discuss, whatever, I gave it a try. Sorry if it's a mess, I was thinking about it while writing