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Re: First WEB credits transaction today!

From: Nathan <nathan@webr3.org>
Date: Mon, 06 May 2013 14:46:04 +0100
Message-ID: <5187B41C.9090200@webr3.org>
To: Melvin Carvalho <melvincarvalho@gmail.com>
CC: Kingsley Idehen <kidehen@openlinksw.com>, Web Payments <public-webpayments@w3.org>
Melvin Carvalho wrote:
> On 6 May 2013 15:26, Kingsley Idehen <kidehen@openlinksw.com> wrote:
> 
>>  On 5/5/13 5:42 PM, Melvin Carvalho wrote:
>>
>>     Nathan and I were playing around with the ripple.com interface today
>> and we discovered that you can use it to issue web based currency based on
>> your ripple address.
>>
>>  We succeeded in getting a trust line going got a transaction into the
>> ripple ledger at entry 627613.  Since ripple requires a 3 letter ISO we
>> decided to use WEB.  Though through the magic of JSON LD I think this can
>> be converted to a URI.
>>
>>  So what it means is that any URI can issue WEB credits.  Tie the URI to a
>> ripple boostrap via
>>
>>  <> foaf : account <ripple:r38363268...>
>>
>>  Which is generally an IFP.  Note that the ripple bootstrap is just for
>> convenience, you can layer on more trust.
>>
>>  Then use that account to issue a genesis block for how many credits you
>> wish to issue.
>>
>>  Then record transactions out of band and use ripple to process netting as
>> necessary.
>>
>>  You will be the steward of your own credits.  Whether they are worth
>> anything or not, will be up to the market!  Enjoy! :)
>>
>> Wow!
>>
>> Talk is no longer cheap :-)
>>
> 
> Thanks :)
> 
> The only thing that I havent worked out how to do is to destroy the account
> key after issuing a finite and fixed supply.
> 
> You could use a notary to do this, I suppose.
> 
> But how do you know you can trust the notary?

You don't, and you don't issue a finite number, in fact you don't issue 
any more than you can afford.

You fix the price instead. Such that one WEB is always equal to one USD.

Then each person can issue WEB credits backed by them, but they have to 
be willing to redeem WEB credits backed by others. So I can send 
Kingsley one WEB credit, and he can redeem it for $1USD with Melvin, 
because we all trust each other.

If you scale this up, then gateways (like bitstamp, mtgox, btce etc) 
will no doubt trust each other, and trust their users, if a user 
deposits $100USD with them, then they have 100WEB to spend anywhere 
which has a trust path.

Currencies which change in value are no good, we need one which has a 
fixed value in order to make money fluid in, out, and over, the web.

I think that makes sense.. Melvin?

Nathan
Received on Monday, 6 May 2013 13:47:21 UTC

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