Locikll. Thanks. 
Great point about digital proof of stake. I suppose the next step is transferring ownership of the asset as part of the smart contract. Its not enough to know that someone has a valuable asset to use for collateral if you can't be guaranteed that you can use it's value. For instance if I want to lend to someone on the other side of the world, I would need to know who he is, where he lives, what his asset is worth and whether I could sell it. Out of all of these verifying his identity would be the most difficult on the blockchain. There are also issues having everyone's identity linked with their assets and debts on a public ledger. Then of course you would need to know that the law is on your side to reposes the asset. It seems to me that loaning would always need to be done by an agency or institution, which means we are still tied to an authority that has a fair amount of control.