Have you heard of Bitcoin? If not, you should have.
Bitcoin is the best known application of a far more important technical advance called blockchain.
A blockchain is a secure way to store and update a database.That database might hold the information on something of value. That value can be broken up into little pieces called tokens. Bitcoin is a currency that is not backed by government fiat, and whose tokens (called bitcoins) have value.
The more secure the blockchain, the easier it is to trade the tokens because their value is clear.
So … what if the something of value was an expensive asset that isn’t liquid … and you put its ownership in a blockchain … and then sold the tokens? For example, you might have just created fractional ownership of something like an artwork, or a building, or a ….
This is where the world is heading. It’s not clear how this will impact macroeconomics.
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