Re: [ox-en] Apple trees (aka capitalism) are bad. What about barter exchange?
- From: Evgeni Pandurski <epandurski gmail.com>
- Date: Fri, 24 Apr 2009 22:06:11 +0300
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On Fri, Apr 24, 2009 at 5:55 PM, Michel Bauwens <michelsub2004 gmail.com>wrote:
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Dear Evgeni,
whenever you are ready for this, I would like to report on your project
both
for the blog, and as a wiki item in our money section, which records
similar
initiatives,
Michel
Here is a brief description of the design I wrote mostly for myself which
might
happen to be helpful for others too:
================================
Circular Exchange Trading System
================================
Motivation
----------
All current systems of trading use money to measure the value of
exchanged goods. Take measuring length for example - we need a
measuring instrument in order to find out how long a given object is.
But notice one important difference - I do not need 100m tape in order
to measure an object 99m in length because I can mark up the point
where my type ends and continue form that point on summing up all my
measurements. Unfortunately this does not work with money - I can not
buy $99-shoes having $10 in my pocket. And this is not because I have
not earned these shoes but because I have not transfered the wealth I
earned into measurement instruments. Money obviously does not store
value - mortgage contracts do. Money is not medium of exchange either
since we use credit cards to buy stuff. Therefore the banking system is
no more than an industry lending type measures. This shocking
observation leads to the idea that we need a trading system that uses
money as a unit of measurement but does not need money to commit
transactions of exchange.
Circular Exchange Trading System (CETS)
---------------------------------------
TODO: Describe the general idea behind CETS here.
CETS Protocol
-------------
There are three type of nodes in the CET protocol -- CET coordinator,
CET market and CET trader. Communications between these types of
nodes are governed by the CETS protocol.
CET Coordinator
Nodes of this type need to maintain a pool of registered CET
markets. CET coordinators are also responsible for collecting all
trading offers coming from registered CET markets, building the
corresponding directed graph and finding cycles in it. CET
coordinator is also responsible to publish cycles and to coordinate
all CET markets to digitally sign a `circular transaction contract`_
which certificates that all parties have accepted to perform the
transaction.
CET market
Nodes of this type maintain a list of goods they resell together
with their prices. CET markets advertise their `market maker`
services to attract CET traders to participate in the market by
offering to buy or sell. CET markets pass all collected offers to
theirs CET servers of choice in order to find a valid circular
transaction contract. CET markets are free to decide which CET
servers to use in order to maximize their efficiency.
CET traders
Nodes of this type corresponds to the real consumers, producers or
traders of goods. CET traders offer their available products to CET
markets. They also declare the goods they request to obtain from
the CET market.
The goal of CET protocol is to clearly define the means of
communication between:
- CET coordinators and CET markets
- CET markets and CET traders
Under normal circumstances CET traders and CET coordinators are not
expected to communicate directly while performing their typical
functions.
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