zlacker

I don't see how this relates to that.

Ironically enough though, could feudal currencies actually be better on a blockchain? Think shares in a business. Bitcoin is backed by nothing, but if businesses all trade on Ethereum–style L2s, you could lock in whatever you want. Think: I want 2 tonnes of lumber for my new house build so I will trade whatever for 20000 $HomeDepotLMBR and it entitles me to exactly that amount when I go into the store.

>>direwo+(OP)
You know what else entitles you to two tons of lumber? Cash in the amount of two tons of lumber. That transaction even goes into a database for the business reporting.

>>b40d-4+ik1
That relies on a third party to maintain the value of the currency. Maybe I'd prefer to minimise my dependence on third parties. The crypto ecosystem makes it much easier to trade six cows for two tons of lumber and offload all of the exchange risk to speculators. It still can't enforce the physical exchange of goods, but it can atomically negotiate a swap from anything to anything through as many intermediaries as required. With a suitable transaction fee — which may come out of the transaction inputs.

A cryptocurrency system can negotiate that my six cow NFTs (which are not jpegs, I guarantee they are exchangeable for cows) for two Ethereum, of which 0.05 is taken as a fee and 1.95 flows on to Uniswap to buy Home Depot coin which buys two tonnes of lumber at a specific location and time. Except oh dear — Home Depot only trades on Polygon. Well then my 1.95 ether is bridged to Polygon where my 1.94 wrapped ether is traded for 9999999 POL and then for Home Depot coins. Or I buy wrapped Home Depot coins atomically on Ethereum and then unwrap them back to Polygon.

Crucially it all happens automatically.

That infra doesn't exist since cows and lumber aren't being traded on a blockchain, but it's the kind of thing that could be enabled.

Since I only hold ETH, WETH and POL during the transaction, their absolute value doesn't matter.

>>direwo+0l2
You just replaced one currency with at least three and who knows whether it's a company-store type situation or rugpull where suddenly the currency has zero value.