Overstock.com CEO Patrick Byrne just launched the first ever cryptobond, and he’s hoping the technology behind it reinvents the way people buy and sell stocks.
What is a cryptobond? Well, it’s the same thing as a regular bond that a company would use to raise capital, but instead of buying and selling it on, say, the NASDAQ, a person would buy and sell this bond using the same technology behind bitcoin.
“It isn’t just about bitcoin, that’s the sideshow,” says Overstock.com CEO Patrick Bryne. “You can use this technology to recreate Wall Street.”
That’s Overstock.com CEO Patrick Bryne. He’s referring to the blockchain protocol, which is essentially a digital ledger that is distributed to all users of the system. New transactions are then checked against the ledger to ensure that the person actually owns what they say they do. Byrne says this system allows for the elimination of corruptible third parties, like banks and government regulators.
“That’s really revolutionary,” he says. “None of these games can go on. You’d have to rig the laws of mathematics to rig the cryptosecurity market. And even J.P. Morgan, Goldman Sachs, they own themselves their own personal senators and congressmen and regulators and politicians,