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London Real

Proof of stake vs owning stocks.

London Real

Brian Rose

Investing, Cardano, Crypto, Bitcoin, Brianrose, Ethereum, Londonreal, Technology, Cryptocurrency, Business, Defi

4.41.9K Ratings

🗓️ 11 March 2022

⏱️ 4 minutes

🧾️ Download transcript

Summary

Alex Fazel discusses the differences between owning stocks and proof of stake.

Transcript

Click on a timestamp to play from that location

0:00.0

We should probably zoom out real quick because we've been talking a lot about crypto and maybe

0:06.3

frame what we're about to talk about in comparison to what I used to do as a banker, right?

0:11.4

I think this is this next slide that you put up that looks like a superhero slide. What are you

0:15.6

trying to say here with this slide here? Looks like the boxing fight slide. But essentially,

0:21.4

so today we'll talk about the low risks or talking about proof of stake and single coin

0:25.7

staking specifically for stables because we see so much asymmetrical returns here. But I think

0:32.3

going back to the traditional trad fire out would make a lot of sense for people who have the same

0:37.2

background as you and maybe are not just moving in to defy at the moment. What is the difference

0:42.4

between proof of stake and the normal shares or equity plays that we say in traditional,

0:47.9

that we see in traditional finance? And I think one of the cool things of seeing this

0:52.3

Brian in terms of proof of stake is you know how in traditional finance you have

0:57.2

common shares and preferred shares or common stocks and preferred stocks? Yeah, it's something that

1:02.4

when you go to buy a company, you can go back in the day and the Wall Street Journal and you could

1:07.0

say, okay, I could buy common stock basically shares of Apple computer or you could provide

1:12.0

or Ford Motor Company or Disney or you could buy the preferred shares, right? Which meant you got

1:18.4

a fixed yield over time, right? And that was an option that you got, you could kind of have one

1:23.9

of the other. You could get the upside of the share and get no promised dividend or you could get

1:29.6

a little bit more of a fixed dividend and maybe slightly less ownership in the company. Exactly

1:34.8

it and you get voting rights on the common shares as well. But the beauty about proof stake,

1:39.6

just to show why proof of stake and this kind of similar to an equity model, right? Because you

1:45.0

need to hold the tokens. But what's better about DeFi than Trafi is you have all of that in one.

1:51.6

So the validators, those who run the nodes, they're getting voting rights plus the dividends and one

...

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