CEO of Yammer David sacks (photo: David Paul Morris/Bloomberg—Getty Images)
Around the idea of transfer of ownership of digital assets and trade on the basis of the blockchain a lot of noise, but real steps to this yet nobody has taken. But this year the situation will change, said a member of the “PayPal mafia,” David Sachs, and the first step in this direction will be the tokens of a property.
To the opinion of Sachs should listen. He is known primarily as the first chief operating officer of the world’s largest payment system PayPal, working in a team with other members of the “mafia” – Elon Musk and Peter Thiel, as well as a serial entrepreneur, who recently created specialized cryptocurrency venture Fund with a capital of 350 million USD.
Speaking at the Token Summit in new York, Sachs explained why he is so optimistic about the “token actions”, the investment of the tokens that are blockchain version of the traditional securities such as stocks or derivatives. (Read more about this and other classes scriptactive can be read, for example, in the article.)
According to Sachs, the advantage of tokens is that they reduce or eliminate “discount for illiquidity” for assets that can not be traded on the open market. This discount compensates for the concerns of consumers that the asset will subsequently be difficult to resell.
Sachs gives the example of the professional real estate market, estimated at 7 trillion dollars, but which cannot be called highly liquid. He believes that the possibility of buying and selling shares in real estate through tokens is fraught with serious potential – each token will match the right property to share in real estate, and they can easily be used in transactions on the basis of the blockchain.
Sachs believes that this new source of liquidity will be attracted to the real estate market more capital and will create a derivatives market for property rights.
“In the end we come to the fact that we will be able to sell futures on real estate. You can open a long position in Manhattan and a short futures real estate San Francisco,” he said to the audience of the summit.
Sachs also predicts that the tokens on the property – not a technology of the distant future, and that investors will trade them by the end of the year.
In a subsequent interview Sachs has forecast that the real estate will be at the forefront of the market in which all types of assets, from art to private equity funds will be converted to tokens.
However, the question is when this will actually happen and whether or not tokenization traditional assets is necessary. Some skeptics do believe tokens are stocks just another unnecessary level of financial engineering.
Sachs, of course, does not share this view. He argues that tokens carry real benefits, providing liquidity and unprecedented transparency.
As an example, he cited a recent deal in which investors purchased a private company, and found that the previous owners had released a third more shares than indicated in the documents. According to Sachs, if the release of these securities were used blockchain, this would could not happen, as all rights of ownership would be recorded in a non-volatile and resistant to the inappropriate access to the registry.
This belief in the blockchain technology explains why Sachs invested money from its new Fund, Craft Ventures, in the development of the company Harbor, providing services for tokenization assets. Harbor sees its role as a market intermediary, which sets the tokens codes and through this ensures that they can be traded only parties that meet the requirements of the standards of KYC (Know Your Customer, “know your customer”) and other legislative norms.
On a wider level Saks is developing its first version of the blockchain created by Satoshi Nakamoto, the Bitcoin network – which could be used to work with a regulated securities market. “[Anonymity] is an advantage for digital money, but the disadvantage to token-actions”, says Sachs, saying that the system of identification and access levels created Harbor ensure regulatory compliance for companies that produce tokens.
In all of these subtleties are not so simple to understand – and including the fact that the blockchain companies have yet to create tools that will help ordinary investors to understand how to work the trade licenzirovanie assets. To show people how to trade stocks online brokerage companies like eTrade or Charles Schwab created the sites and applications, but the system simple navigation of the world the blockchain-technologies no one has yet created. According to Sachs, the reason for this is that the blockchain is a technology database-level, not application level. On the basis of the blockchain user-friendly tools that will play the role of UI will have the companies themselves.
“The user interface is likely to be quite unlike those we have seen in recent time. It will not just websites or applications – these concepts will remain in the past. The user interface will be a token,” says Sachs, adding that the token will contain all important and relevant investor information, including ownership rights and the history of your trade operations.