7.6. Finance
Ideas
- Everyone can be their own banker. For example, loan contracts can be freely established between individuals or businesses on the blockchain.
- This does not prevent the existence and operation of financial institutions that professionally provide financial services.
- Finance remains at the service of the real economy at all times.
Decentralized finance
The blockchain allows everyone to be their own banker if they wish. Accounts can be opened at will, and users are free to carry out the transactions they want.
The programmability of the blockchain also allows for the establishment of loan contracts between individuals, potentially based on collateral from the borrower's NFT portfolio.
It also allows for the implementation of multi-signature accounts to secure funds for joint projects, for example.
Whether through an individual current wallet or an NFT wallet, each person has complete control over their assets, guaranteed by the blockchain code. This is a fundamental building block of the Software Democracy.
Centralized finance
The blockchain does not prevent the existence of financial institutions.
They can hold accounts on behalf of a client and offer them all traditional financial services (investments, loans, insurance...) in the form of a smart contract.
Rules of the game
Finance must serve the real economy and should not exist only for itself. To this end, financial arrangements that have no objective justification in terms of economic or social progress are made impossible on the blockchain.
In parallel, access to shareholding and investment must be open to all, in order to allow everyone to benefit from economic growth.
Just like dividends, the profits paid from financial investments are taxed but can be reinvested without fees.