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February 25, 2013, 01:09:50 AM |
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I've come up with a system for a blockchain based stock exchange and would like to run it by you guys before I get too far down the road on it. The idea is this:
1. The private owner of an enterprise decides to take it public.
2. The owner creates a vanity address for the IPO with the first few characters after the 1 representing the ticker symbol of the stock and transfers into it a number of bitcoins representing the total number of outstanding shares that will be issued (in Satoshis) and announces the IPO publicly.
3. Any person wishing to purchase the stock also creates a vanity address with the same first characters as the owner and then negotiates a sale with the owner at a reasonable price. The transaction is then recorded as follows
A. The buyer transfers some number of Bitcoins from any arbitrary address to the owner of the stock
B. The owner then transfers the agreed number of shares (denominated in Satoshis) from the vanity address of the IPO to the vanity address of the buyer.
Transactions between owners of the stock later take place in a similar manner and only transactions between vanity addresses with the same first characters actually are considered to transfer ownership of the stock. The fact that all such transactions are in the blockchain makes them audit-able for anyone. Obviously there will be opportunities for third party services to escrow the transactions and to advertise the existence and market for various stocks (this is where I intend to come in), but the information about the ownership of the underlying stocks is tied into the blockchain and is therefore not owned by any one individual. Let me know what you guys think.
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