Re: Some notes on price stabilization indexing

Jeffrey,

RE: "Ripple effectively ought to be an  index in this context"  +   "I mean
in the choice of currency in question"

Not clear what you're saying in regard to an index.


RE: The price will vary in relation to the supply/demand offer pairs on the
paths through the ripple network that are found that satisfy the request.

And what determines the supply price offer and demand price bid for any
pair?  Feelings?  Are the Ripple feelings different in some way from the
(AFAIK) purely speculative feelings that determine bitcoin supply price
offers and demand price bids?

Joseph


On Thu, Jan 9, 2014 at 1:54 PM, Jeffrey Cliff <jeffrey.cliff@gmail.com>wrote:

> I do not mean XRP at all.  I mean in the choice of currency in
> question.  The price of putting a USD payment from a USD account to a
> (USD or other) account is well defined.  The price will vary in
> relation to the supply/demand offer pairs on the paths through the
> ripple network that are found that satisfy the request.  ie
> https://ripple.com/wiki/JSON_Messages#ripple_path_find
>
> On 09/01/2014, Joseph Potvin <jpotvin@opman.ca> wrote:
> > Jeffrey, XRP could be an index in its own right, yes. But I've not been
> > able to find anything that tells me what tangible or intangible source
> > information it varies in relation to, or the mechanism of its value
> change.
> >
> >
> > --
> > Joseph Potvin
> > Operations Manager | Gestionnaire des opérations
> > The Opman Company | La compagnie Opman
> > http://www.projectmanagementhotel.com/projects/opman-portfolio
> > jpotvin@opman.ca
> > Mobile: 819-593-5983
> > LinkedIn (Google short URL): http://goo.gl/Ssp56
> >
> > On Thu, Jan 9, 2014 at 10:56 AM, Jeffrey Cliff
> > <jeffrey.cliff@gmail.com>wrote:
> >
> >> I know it was mentioned before, but Ripple effectively ought to be an
> >> index in this context, given a choice of a target address, and the
> >> address of the user coming to make a payment.
> >>
> >> On 23/12/2013, Fabio Barone <holon.earth@gmail.com> wrote:
> >> > This is a much more fleshed out and realistic (in that more potential
> >> > for
> >> > acceptance by businesses) proposal
> >> > than an idea of an "open wallet" I had some time ago, which was
> >> essentially
> >> > about
> >> > publishing the currencies one would be willing to accept and let the
> >> > parties negotiate transactions.
> >> >
> >> >
> >> > 2013/12/19 Joseph Potvin <jpotvin@opman.ca>
> >> >
> >> >> This is just a quick update on a topic that I think is interesting to
> >> >> just
> >> >> a few on this list.
> >> >>
> >> >> In preparation for the March meeting in Paris I'll be writing some
> >> >> use-case examples, scenarios in which algorithmic pricing with a
> >> vendor's
> >> >> chosen index would be preferred.  Please contact me if you would like
> >> >> to
> >> >> collaborate this topic.
> >> >>
> >> >> The function use of price indices in web-payments can be summed up as
> >> >> follows:
> >> >>
> >> >> "Using any standards-compliant e-commerce software, a vendor would
> >> select
> >> >> a reference currency they prefer to use for base price management,
> and
> >> >> identify any other currencies they would be equally willing to
> >> >> accepted
> >> >> in
> >> >> payment. They can also select one of the available price indexing
> >> >> services,
> >> >> which could be a currency exchange rate, or another type of index
> more
> >> >> relevant to the scope and dynamics of their particular business that
> >> >> would
> >> >> enable greater price stability, variability with key input prices, or
> >> >> some
> >> >> other criterion.
> >> >>
> >> >> When a vendor selects a given index service, their e-commerce
> software
> >> >> would automatically query its data feed in order to interpret their
> >> >> base
> >> >> price for each good or service from its publication date, to express
> >> >> the
> >> >> same real value in each of the other currencies that the vendor has
> >> >> identified as acceptable for payment. Price re-calibrations occur on
> >> >> an
> >> >> established schedule through time, and each update is digitally
> signed
> >> by
> >> >> the vendor's e-commerce software.
> >> >>
> >> >> A customer browsing the vendor's e-commerce site chooses a payment
> >> >> currency that s/he has available to pay, from amongst those
> identified
> >> as
> >> >> acceptable to the vendor. (This would be like choosing a mutually
> >> >> acceptable language on a multilingual website). The vendor's site
> then
> >> >> displays all prices in that currency to the purchaser.
> >> >>
> >> >> When the customer activates a purchase, the vendor's shopping cart
> >> >> function sends the digitally-signed interpreted price expressed in
> the
> >> >> buyer's chosen currency to the purchaser's own payments processor,
> >> >> local
> >> >> or
> >> >> external. Once the purchaser's available funds are confirmed, the
> >> >> transaction is processed at both ends.
> >> >>
> >> >> ***
> >> >>
> >> >> Some indices being worked on as time permits:
> >> >>
> >> >> A useful ready-to-go index for any global retail vendor to consider
> >> would
> >> >> be the "World Price Index":
> >> >> http://www.worldeconomics.com/WorldPriceIndex/WPI.efp
> >> >> Recently I made arrangements with EF Publishing for direct server
> >> queries
> >> >> to their WPI for the W3C WebPayments work.
> >> >>
> >> >> With the founder of http://www.centralbanking.com/ I've been
> >> >> discussing
> >> >> the utility and design of an index based on total market
> >> >> capitalization,
> >> >> which can be constructed from data at this source:
> >> >> http://www.world-exchanges.org/statistics/monthly-query-tool
> >> >> Precise methodology for the index is not yet worked out.
> >> >>
> >> >> The Earth Reserve Index that I and some colleagues are working on
> (the
> >> >> details of which are admittedly tangential to this list) received
> some
> >> >> useful off-list feedback during the past week. I've posted an edited
> >> >> update
> >> >> to the Earth Reserve Index concept-of-operations 2-pager here:
> >> >>
> >> >>
> >>
> http://www.projectmanagementhotel.com/attachments/6030/ERindex_2page_19dec2013aPDF.pdf
> >> >> http://www.projectmanagementhotel.com/documents/449
> >> >>
> >> >>
> >> >> Joseph Potvin
> >> >> Operations Manager | Gestionnaire des opérations
> >> >> The Opman Company | La compagnie Opman
> >> >> http://www.projectmanagementhotel.com/projects/opman-portfolio
> >> >> jpotvin@opman.ca
> >> >> Mobile: 819-593-5983
> >> >> LinkedIn (Google short URL): http://goo.gl/Ssp56
> >> >>
> >> >>
> >> >>
> >> >> <http://goo.gl/Ssp56>
> >> >>
> >> >
> >>
> >>
> >> --
> >> GENERATION 26: The first time you see this, copy it into your sig on any
> >> forum and add 1 to the generation
> >>
> >
> >
> >
> > <http://goo.gl/Ssp56>
> >
>
>
> --
> GENERATION 26: The first time you see this, copy it into your sig on any
> forum and add 1 to the generation
>



-- 
Joseph Potvin
Operations Manager | Gestionnaire des opérations
The Opman Company | La compagnie Opman
http://www.projectmanagementhotel.com/projects/opman-portfolio
jpotvin@opman.ca
Mobile: 819-593-5983
LinkedIn (Google short URL): http://goo.gl/Ssp56