Smart Bonds - are they technically feasible ?

[ChiBitCTy]

Saw a post in Meta about Swiftcoin.org (plagiarizing btalk posts to bolster their site) and read about their “Solidus Bonds”.. Which appear to be some type of Smart Bond, a blockchain based investment bond.  

Im assuming smart bonds can be like cryptocurrency and are able to be coded /established differently, but trying to achieve the same use case.  

As for Solidus bonds, they claim the bonds use a proof of work B-chain and BTC wiki states “ The Solidus Bond utilizes SHA-256 elliptical encryption on a decentralized block chain to create and redeem debt instruments issued in a digital currency. The bonds are brought into existence upon command by any investor via algorithm rather than fiat. Coupon payments and bond redemption are also executed by algorithm, eliminating the need for brokerages and theoretically reducing bond duration to zero, making credit ratings obsolete. Investors choose bond size and bond maturity of seven days to 10 years. Payments are emitted from the block chain to the SwiftCoin wallet chosen by the investor at the time of bond creation. There are no commissions or fees to pay. The only requirement to purchase a Solidus Bond is a SwiftCoin wallet and a sufficient balance of the SwiftCoin digital currency to cover the face value of the bond. Bond ownership is conveyed solely through possession. There are no accounts, records, or user databases and the block chain ledger is not public“.

One, I’m curious if this is technically feasible, or all smoke. Two (a bit off the boards topic) does anyone know how these bonds actually produce an interest rate return? I read about 10 articles and not one state how they make money on your bonds to be able to pay out interest rates.

UBS was apparently working On their own smart bond in 2016, but can’t seem to find any follow up info. Appreciate any feedback.

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[odolvlobo]

Financial instruments can be implemented on the Bitcoin block chain through protocols such as Bitshares, Counterparty, and Omni. However, these have mostly gone out of favor with companies now preferring to implement financial instruments based on Ethereum.

Solidus and SwiftCoin are scams so it doesn't matter how they work.

[ChiBitCTy]

Financial instruments can be implemented on the Bitcoin block chain through protocols such as Bitshares, Counterparty, and Omni. However, these have mostly gone out of favor with companies now preferring to implement financial instruments based on Ethereum.

Solidus and SwiftCoin are scams so it doesn't matter how they work.

Solidus is an easy scam to spot, and was aware it was one after reading about it for a whole 2mns. But I thought maybe the protocols/tech behind it , or however you state that, might be legit for a non-scam smart bond..like the one UBS was trying to create.

I was hoping there was some advancement with S.C's in this area, but I see that's likely not been happening.  I get why they are going to Ethereum, and knew they were, but that's mostly bs no? Sure it provides the platform to build, but that's only half the battle, the S.C. functioning as a game changer is the other half right. DeFi is a good example of how this is not reality yet. As well as this not being a reality yet- https://bitcointalk.org/index.php?topic=750.msg8140#msg8140 . 

[DaveF]

Part of it is difficulty.
Yes you can build things like that on the bitcoin blockchain. BUT, it's a lot more difficult then using other cryptos.
ETH, be it good or bad, in yours or mine or anyone's opinion is not the question.
It's how much work has to be done.

Using a car example. You don't haul massive amounts of lumber in your Honda Accord. Yes you can, but it takes longer because you have to make multiple trips and you are more likely going to scrape up the paint or dent something. You haul lumber in your pickup truck. On that same note, you don't want to be an Uber driver in a pickup that get's 12 miles to the gallon. That is what the Accord hybrid getting 47 MPG is for.

I can probably find someone to do some sort of a smart bond on ETH before I finish my cup of coffee. Going to be longer and harder to find one on BTC.
On the other hand. There are a lot of reasons not to want to deal with ETH. A lot including the timeline of development that is always in flux.

Just my view.

-Dave