Thanks for the critique! Here’s a breakdown of the points raised:
-Who wants to drive across town to inspect a €50 item?
The focus is on mid to high-value, preferably niche items. Lower-value goods often don’t justify the costs involved in driving and the time spent on validation.
-Can a random broker validate a luxury watch?
Not all brokers have the necessary expertise to validate every item, especially luxury goods. The proposal is to enhance the current system by assigning brokers based on item categories. This specialization will be particularly effective when there are enough brokers for specific categories, such as watches.
- Physical validation adds days to trades.
While physical validation can slow things down, brokers who fail to validate effectively will phase out over time, ensuring that only those with the right expertise remain. It should be economically infeasible to accept assignment, where you have no expertise. This approach aims to streamline the validation process.
-Fees might price out low-value items.
Focusing on mid to high-value items helps avoid the issue of fees pricing out lower-value goods.
Additionally, this idea is designed to integrate into existing niches where validation matters significantly, like trading cards, electronics, watches, and sneakers. Numerous businesses already specialize in validating these items and have the necessary expertise to navigate legal requirements.
I chose to build an L1 for several reasons. One major factor is the desire for fair currency distribution. Additionally, I wanted to ensure instant finality to prevent block reverts during trades.
In 3.1, rejecting (R) fraudulent (F) goods resulting in 0 for the seller is a strong assumption. There are all kinds of possible negatives (typically risks of legal fees) for storage costs of fraudulent goods in the game of hot potato. It might be worth your time to look into the literature a bit more.
The paper was aimed at a broader audience, which is why it simplifies some concepts and makes certain assumptions. While there are potential drawbacks to consider, it’s reasonable to assume that a seller of a fraudulent item gains nothing if the item gets rejected. In that scenario, their goal of making money wouldn’t be achieved, and any additional losses wouldn’t significantly impact the protocol. In fact it would deter fraudsters. I'd love to hear more thoughts on this!
This is now my favorite way to visualize these concepts in practice.
- Who wants to drive across town to inspect a €50 item for a small fee (we can draw comparison to Uber Eats like platforms fees economies)?
- Can a random broker validate a luxury watch? Do we need another blockchain tech for broker validator skill reputation?
- Physical validation adds days to trades, in online economy, the faster the merrier
- Fees might price out low-value items
Let's see how this plays out.
-Who wants to drive across town to inspect a €50 item? The focus is on mid to high-value, preferably niche items. Lower-value goods often don’t justify the costs involved in driving and the time spent on validation.
-Can a random broker validate a luxury watch? Not all brokers have the necessary expertise to validate every item, especially luxury goods. The proposal is to enhance the current system by assigning brokers based on item categories. This specialization will be particularly effective when there are enough brokers for specific categories, such as watches.
- Physical validation adds days to trades. While physical validation can slow things down, brokers who fail to validate effectively will phase out over time, ensuring that only those with the right expertise remain. It should be economically infeasible to accept assignment, where you have no expertise. This approach aims to streamline the validation process.
-Fees might price out low-value items. Focusing on mid to high-value items helps avoid the issue of fees pricing out lower-value goods.
Additionally, this idea is designed to integrate into existing niches where validation matters significantly, like trading cards, electronics, watches, and sneakers. Numerous businesses already specialize in validating these items and have the necessary expertise to navigate legal requirements.