Is this dumb?

I honestly have no clue:

  1. How to call this thing I have in mind, and

  2. How dumb / unreasonable / challenging / legally complex it might be

But I’d like to hear your thoughts and opinions on this.

Can you imagine a blockchain that would act as an automatic aggregator and distributor of all kinds of assets, with a focus on cryptocurrency first and foremost, which would not require third party exchanges to act a middle man for this aggregation and distribution?

Practical example.

Take the Cardano network.

Introduce a new type of functionality in it for its Smart Contracts, in order to:

  • instantiate new external cryptocurrency wallets
    [ BTC, ETH, SOL, TUSD, anything else ]

  • retrieve or calculate the current exchange rates from the market
    [ BTC / ADA, ETH / ADA, SOL / ADA, etc. ]

  • give the opportunity to anyone to bring their cryptocurrency deposits in the network
    [ in BTC, ETH, SOL, TUSD, whatever else ]

  • “wrap” those deposited cryptocurrencies for the transfer through the Cardano network
    [ where each “wrapped” cryptocurrency is effectively backed by the real thing underneath ]

  • give the possibility to ADA stakers, holders and traders to exchange the “wrapped” value for ADA
    [ converting their “cardanized” TUSD, SOL, ETH, BTC, etc. - to ADA itself ]

  • and provide the option to “unwrap” it at will for holders to move the original asset wherever

    • with a “wrapped” CUSDT moved only through the Cardano network, with much lower fees
    • and the “unwrapped” USDT movable at will through the external original USDT network

Additional ideas:

  • assuming that there’s enough liquidity in the market to allow for such an exchange to take place in another way, the blockchain network itself could reward the depositors with the full amount of their transfer in ADA right away, reserving the transferred deposits for future exchanges with those who will later come to exchange their ADA funds for the external cryptocurrency network holdings

  • provided there’s a way to ensure the same mechanism for FIAT currencies, there’s no stopping anyone to configure the blockchain to connect to its own local bank account (in USD, EUR, GBP) for the similar exchanges to take place - and since the banks will want to “verify” the transfer of the funds from whomever is making the request, the addition of optional metadata, already available throughout the network could prove to be quite useful in the negotiation / settlement process

This is probably quite a horrible idea overall, but I thought I might share it anyway.

Did you take a look at Milkomeda?