Topic: NXTBank Credit Rating System (Read 5889 times)

nxtgt · « **Reply #20 on:** June 13, 2014, 02:15:19 pm »

Quote from: bluemeanie1 on June 12, 2014, 09:36:49 pm

yes, this sort of 'stickyness' does contribute to NXT value and yes... price.

-bm

That whitepaper was interesting but it seems like we're getting ahead of ourselves with issuing bonds as mechanism for deposits and withdrawals. Bonds are rather complex instruments and the market would just be a mess if all people are trying to do is deposit and withdraw their money, or borrow. I'll save you the lengthy technical explanation but pricing bonds involves a lot of financial mumbo jumbo that isn't as forthcoming as understanding a fixed interest rate. Changes in interest rates impact bond value, as well as term to maturity, timing of interest payments, duration, convexity, etc. We'd have a scenario where people are trying to redeem bonds and not getting all the money they deposited and not understanding why.

bluemeanie1 · « **Reply #21 on:** June 13, 2014, 04:26:22 pm »

Quote from: nxtgt on June 13, 2014, 02:15:19 pm

Quote from: bluemeanie1 on June 12, 2014, 09:36:49 pm
yes, this sort of 'stickyness' does contribute to NXT value and yes... price.

-bm

That whitepaper was interesting but it seems like we're getting ahead of ourselves with issuing bonds as mechanism for deposits and withdrawals. Bonds are rather complex instruments and the market would just be a mess if all people are trying to do is deposit and withdraw their money, or borrow. I'll save you the lengthy technical explanation but pricing bonds involves a lot of financial mumbo jumbo that isn't as forthcoming as understanding a fixed interest rate. Changes in interest rates impact bond value, as well as term to maturity, timing of interest payments, duration, convexity, etc. We'd have a scenario where people are trying to redeem bonds and not getting all the money they deposited and not understanding why.

my thought is that all these underlying functions can be shielded from the end user. I certainly dont imagine the average user issuing or marketing bonds.

-bm

nxtgt · « **Reply #22 on:** June 17, 2014, 06:28:24 pm »

Does it make sense to start with localized reputation management using the network/trust line model rather than global ratings? For example, a mechanism could be developed such that if A "trusts" B, trust information contained within A's network would flow to B. Then level of trust can range from strong to weak based on history of on-blockchain transactions or hypothetically, completion of "smart" contracts between A and B?

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Author Topic: NXTBank Credit Rating System (Read 5889 times)

nxtgt

Re: NXTBank Credit Rating System

bluemeanie1

Re: NXTBank Credit Rating System

nxtgt

Re: NXTBank Credit Rating System