Re: [Payments Architecture] A vision statement for the web payments architecture work

On 26 May 2015 at 16:29, Adrian Hope-Bailie <adrian@ripple.com> wrote:

> How does this change the fact that when sending value over the Web the
> analogy with the Web of today and sending of information breaks down? There
> is no double-spend problem to overcome in designing a system to send email
> over the Internet.
>

One other point about double spend. The web is so big it will throw up some
use cases where double spend is more of a problem and double spend is less
of a problem.

Let's consider a currency as an anti spam measure (which is a typical
motivation for creation).  I might charge a certain amount of credits to
read or write a certain resource, to keep out spammers.  However if that
person is a trusted friend, then I might not even cash the charge at all,
simply give access for free.  In this scenario, a double spend is not
expensive to me, or to the user.


>
> On Tue, May 26, 2015 at 4:10 PM, Melvin Carvalho <melvincarvalho@gmail.com
> > wrote:
>
>>
>>
>> On 26 May 2015 at 15:50, Adrian Hope-Bailie <adrian@hopebailie.com>
>> wrote:
>>
>>> One must remember that this analogy breaks down when you consider that
>>> data can be replicated infinitely and yet we want to send "value" in a way
>>> that it can only be sent once and once it has been sent it is held be the
>>> receiver.
>>>
>>
>> Data cant be sent infintiely, since storage is finite.  Data can be
>> replicated, however, to very large degrees.  This is part of what we call
>> the "open world assumption" [1].  Out of this mass of data comes a
>> consensus, for it to be useful.  This is either top down through central
>> authorities.  Or bottom up, in a self organizing way, which is the design
>> philosophy of the web.  We've seen both system work as a hybrid solution on
>> the web.
>>
>> [1] http://en.wikipedia.org/wiki/Open-world_assumption
>>
>>
>>>
>>>
>>>
>>> On 26 May 2015 at 15:32, Melvin Carvalho <melvincarvalho@gmail.com>
>>> wrote:
>>>
>>>>
>>>>
>>>> On 26 May 2015 at 13:03, Adrian Hope-Bailie <adrian@hopebailie.com>
>>>> wrote:
>>>>
>>>>>
>>>>>> The second is explicitly calling out the need for the architecture to
>>>>>> allow payers and payees to make a transfer of value between one
>>>>>> another,
>>>>>> even if they don't have a common payment instrument or scheme. i.e.
>>>>>> The
>>>>>> Web must work like the Web is supposed to and have a mechanism to fill
>>>>>> the gaps and comment the two.
>>>>>>
>>>>>
>>>>> With this explanaition I understand your idea. But, from my point of
>>>>> view, in the end, this is making a kind of "P2P payment", which we could
>>>>> consider as a new payment scheme.
>>>>>
>>>>> +1 Yes. I wouldn't say it has to be P2P (person to person) it could be
>>>>> a business or government or any other entity on either end of the payment
>>>>> but the point is we ARE suggesting that there be a new payment scheme,
>>>>> called the Web. It will provide the glue between existing schemes so we
>>>>> have a truly decentralized system as Melvin suggests.
>>>>>
>>>>
>>>> There's two aspects of the web, one is the glue and one is the core.
>>>> Just like UNIX has a kernel and drivers.
>>>>
>>>> If you consider every HTTP request returns a number of bytes, which are
>>>> information.  This is transferring something of value.  Extending the core
>>>> of the web to be agnostic to what items of value are transferred.  At the
>>>> same time the web acts as a very good glue and can incorporate existing
>>>> payments systems on a per need basis, much as webmail incorporated email.
>>>>
>>>> Different teams will work on different aspects.  The part that intersts
>>>> me is stitching payments into the fabric of the web itself (if it isnt
>>>> already) and sharing common patterns and experiences.  Probably to start
>>>> with the frameworks around existing payments will be the bigger work.  But
>>>> to see that in the context of a decentralized web will hopefully allow
>>>> incentives to become aligned with value creation, with less friction.
>>>>
>>>>
>>>>>
>>>>>
>>>>>
>>>>> On 26 May 2015 at 11:13, Antonio Ruiz Martínez <arm@um.es> wrote:
>>>>>
>>>>>> Hi Adrian,
>>>>>>
>>>>>> First of all, many thanks for you comments and explanations.
>>>>>>
>>>>>> El 22/05/2015 a las 15:27, Adrian Hope-Bailie escribió:
>>>>>>
>>>>>>> Hi Antonio,
>>>>>>>
>>>>>>>     After reading the current version of the document, I have some
>>>>>>>     comments and suggestions that I would like to share. I hope they
>>>>>>> are
>>>>>>>     useful.
>>>>>>>
>>>>>>>
>>>>>>> Thanks for your input
>>>>>>>
>>>>>>>     - Regarding user experience, I would mention that the payment
>>>>>>>     process (initiation, purchase, obtaining a receipt and the
>>>>>>>     product/service) should be uniform so that the user can see the
>>>>>>>     process is conducted in the same way and, thus, it generates
>>>>>>> trust
>>>>>>>     to the users. I do not know if this is what you want to mean with
>>>>>>>     "harmonizing the checkout experience across e-commerce websites."
>>>>>>>
>>>>>>>
>>>>>>> Yes, this is what that sentence is intending to say. Perhaps
>>>>>>> "harmonizing the payment experience across all Web applications and
>>>>>>> sites."
>>>>>>>
>>>>>>
>>>>>> it sounds ok.
>>>>>>
>>>>>>
>>>>>>>     I would also include that it should facilitate that the user can
>>>>>>>     know the payment options available and even the (automatic)
>>>>>>>     negotiation of these options.
>>>>>>>
>>>>>>>
>>>>>>> Is this not covered under the bullet: "*Provides payees and payers
>>>>>>> unencumbered knowledge and choice in how to undertake payments*"?
>>>>>>>
>>>>>>
>>>>>> May be.
>>>>>>
>>>>>>
>>>>>>>     - I would also incluse some comment on that the way of making the
>>>>>>>     encapsulation of (new or existing) payment schemes should be
>>>>>>> uniform
>>>>>>>     and independent of the type of payment scheme (mobile or not).
>>>>>>>
>>>>>>>
>>>>>>> I think this is implied by the fact that we are "standardizing" this
>>>>>>> process.
>>>>>>>
>>>>>>>     - From my point of view, I do not why know why the document needs
>>>>>>>     the bullets "Enables monetization on the spectrum of Web to
>>>>>>> native
>>>>>>>     apps" and "Bridges distributed value networks should part of the
>>>>>>>     vision.". From my point of view, these issues are a consequence
>>>>>>> of
>>>>>>>     "Encapsulates existing payment schemes and enables new schemes. "
>>>>>>>
>>>>>>>
>>>>>>> No, the first bullet you mention is explicitly talking about enabling
>>>>>>> new business models on the Web due to the reduction in friction and
>>>>>>> cost
>>>>>>> of payments (monetization). This speaks to things like enabling
>>>>>>> pay-per-click/read/watch/listen media consumption or
>>>>>>> similar which
>>>>>>>
>>>>>>
>>>>>>
>>>>>> This last explanation is clearer since the previous one, in my
>>>>>> opinion, do not involve something clear related to the defintion of the
>>>>>> payment architecture.
>>>>>>
>>>>>>  can't be easily done today because the way payments are
>>>>>>> processed makes these business models non-viable.
>>>>>>>
>>>>>>> The second is explicitly calling out the need for the architecture to
>>>>>>> allow payers and payees to make a transfer of value between one
>>>>>>> another,
>>>>>>> even if they don't have a common payment instrument or scheme. i.e.
>>>>>>> The
>>>>>>> Web must work like the Web is supposed to and have a mechanism to
>>>>>>> fill
>>>>>>> the gaps and comment the two.
>>>>>>>
>>>>>>
>>>>>> With this explanaition I understand your idea. But, from my point of
>>>>>> view, in the end, this is making a kind of "P2P payment", which we could
>>>>>> consider as a new payment scheme.
>>>>>>
>>>>>> Best regards,
>>>>>> Antonio.
>>>>>>
>>>>>>
>>>>>>>     - As for security and privacy, the sentences that mention
>>>>>>> "Supports
>>>>>>>     a wide spectrum of security requirements and solutions" or
>>>>>>> similar
>>>>>>>     should be reworded. Why a "wide spectrum"?. I consider that the
>>>>>>>     security, privacy and regulatory issues have to be taken into in
>>>>>>> the
>>>>>>>     development of an e-commerce website or e-payment solution.
>>>>>>> However,
>>>>>>>     I consider that, e.g., the support of different authentication
>>>>>>>     mechanisms is not part of the payment architecture. However, in
>>>>>>> the
>>>>>>>     processes that are part of the payment process, for example,
>>>>>>> getting
>>>>>>>     a payment offer, the payment architecture should define the
>>>>>>>     mechanisms to protect this information. Then, I consider that in
>>>>>>> the
>>>>>>>     bullet we could say that security, privacy and regulatory issues
>>>>>>>     will be taken into account to design the different process of
>>>>>>>     payment architecture that need to be securized.
>>>>>>>
>>>>>>>
>>>>>>> Our intention is to propose an architecture and ultimately define
>>>>>>> some
>>>>>>> standards. When it comes to regulation and security I think our
>>>>>>> approach
>>>>>>> is to cater for everything we know is out there but not prescribe how
>>>>>>> implementations are built. When it comes down to an implementer
>>>>>>> deploying a solution in a specific jurisdiction subject to specific
>>>>>>> laws
>>>>>>> and regulations they should not be restricted by the architecture in
>>>>>>> trying to adhere to these. On the other hand the architecture should
>>>>>>> describe at what points these issues come into scope and provide
>>>>>>> mechanisms to deal with them so that we make the life of the
>>>>>>> implementer
>>>>>>> easier.
>>>>>>>
>>>>>>>     Best regards,
>>>>>>>     Antonio.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>     El 18/05/2015 a las 14:58, Adrian Hope-Bailie escribió:
>>>>>>>
>>>>>>>         The IG are trying to finalize a short vision statement for
>>>>>>> the
>>>>>>>         work we
>>>>>>>         are undertaking, specifically with regards to the
>>>>>>> architecture
>>>>>>>         we will
>>>>>>>         be developing, for payments on the Web.
>>>>>>>
>>>>>>>         The document is intended to express the technical principles
>>>>>>> we
>>>>>>>         consider
>>>>>>>         important in the design of the architecture and I'd
>>>>>>> appreciate some
>>>>>>>         input on it's content.
>>>>>>>
>>>>>>>         The document is also intended to be short, less than a page,
>>>>>>> and
>>>>>>>         as such
>>>>>>>         not too detailed. It's purpose is to frame the design and
>>>>>>> allow all
>>>>>>>         stakeholders to agree up front that we are aligned on our
>>>>>>> vision.
>>>>>>>
>>>>>>>         The audience should be broad, and not necessarily payments
>>>>>>> or Web
>>>>>>>         technology experts, but since this is related to the design
>>>>>>> of a
>>>>>>>         technical architecture the content will be technical.
>>>>>>>
>>>>>>>         Please have a look at the first draft of this document and
>>>>>>> send
>>>>>>>         me your
>>>>>>>         feedback.
>>>>>>>
>>>>>>>
>>>>>>> https://www.w3.org/Payments/IG/wiki/Payment_Agent_Task_Force/Vision
>>>>>>>
>>>>>>>         Thanks,
>>>>>>>         Adrian
>>>>>>>
>>>>>>>         p.s. Thanks Ian Jacobs for the initial work in getting this
>>>>>>> started.
>>>>>>>
>>>>>>>
>>>>>>>     --
>>>>>>>     --------------------------------------------------------
>>>>>>>     Antonio Ruiz Martínez
>>>>>>>     Department of Information and Communications Engineering
>>>>>>>     Faculty of Computer Science-University of Murcia
>>>>>>>     30100 Murcia - Spain
>>>>>>>     http://ants.inf.um.es/~arm/ or http://webs.um.es/arm/
>>>>>>>     e-mail: arm@um.es <mailto:arm@um.es> or arm [at] um [dot] es
>>>>>>>     --------------------------------------------------------
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>> --
>>>>>> --------------------------------------------------------
>>>>>> Antonio Ruiz Martínez
>>>>>> Department of Information and Communications Engineering
>>>>>> Faculty of Computer Science-University of Murcia
>>>>>> 30100 Murcia - Spain
>>>>>> http://ants.inf.um.es/~arm/ or http://webs.um.es/arm/
>>>>>> e-mail: arm@um.es or arm [at] um [dot] es
>>>>>> --------------------------------------------------------
>>>>>>
>>>>>
>>>>>
>>>>
>>>
>>
>

Received on Saturday, 30 May 2015 18:30:17 UTC