My point is that traditional finance doesn't need this because there's enough cash available to arbitrageurs already, so if you somehow made flash loans, they wouldn't be used anyway. It's also unclear what legal framework would accompany them, which is again something that Ethereum can ignore.
Your last paragraph is an oft-repeated myth that using Ethereum forces transparency and interoperability between systems. But that's not true, it doesn't enforce that, I've seen my share of code trying to implement ERC20 and failing in subtle ways, and that's code trying to follow a common interface. Interoperability is hard, and you don't get by using $MAGIC_PLATFORM.
Some projects also restrict access to their smart contract because legally it's really hard to make it fully open, or put a tiny part of their system there mostly for PR reasons ("we're on the blockchain").
Reasons why data sharing etc. are a massive pain include:
* no incentive from financial institutions to improve that
* legal reasons making it hard and costly to do anyway
Ethereum is not solving these problems.
In particular:
> efficient, standard, secure
* So far it's failing at "efficient", and it can only be more efficient by getting rid of the legal aspects of financial transaction, the tech is not the problem.
* It's also failing at "secure" as evidenced by the link above.
Another counterargument to the potential of this tech is, if indeed it brought such benefits, we'd have seen more than toy projects developed in traditional finance by now, but we're mostly seeing institutions like the ASX scaling down on such experiments.
My point is that traditional finance doesn't need this because there's enough cash available to arbitrageurs already, so if you somehow made flash loans, they wouldn't be used anyway. It's also unclear what legal framework would accompany them, which is again something that Ethereum can ignore.
Your last paragraph is an oft-repeated myth that using Ethereum forces transparency and interoperability between systems. But that's not true, it doesn't enforce that, I've seen my share of code trying to implement ERC20 and failing in subtle ways, and that's code trying to follow a common interface. Interoperability is hard, and you don't get by using $MAGIC_PLATFORM.
Some projects also restrict access to their smart contract because legally it's really hard to make it fully open, or put a tiny part of their system there mostly for PR reasons ("we're on the blockchain").
Reasons why data sharing etc. are a massive pain include:
* no incentive from financial institutions to improve that
* legal reasons making it hard and costly to do anyway
Ethereum is not solving these problems.
In particular:
> efficient, standard, secure
* So far it's failing at "efficient", and it can only be more efficient by getting rid of the legal aspects of financial transaction, the tech is not the problem.
* It's also failing at "secure" as evidenced by the link above.
Another counterargument to the potential of this tech is, if indeed it brought such benefits, we'd have seen more than toy projects developed in traditional finance by now, but we're mostly seeing institutions like the ASX scaling down on such experiments.