Tuesday, November 15, 2016

Color vs Ito

How well do you obey Ito rules? Does your look back window include enough rare events so your bit error accumulation is not under run.  If you over compensate for risk, look back beyond any  structure, you are overly green. Otherwise overly red.

Define amber to mean, specifically, when all bi-directional liquidity events terminating at a smart card, appear to be random, independent gaussian arrivals, mean = variation, poisson balanced, mostly. The mostly is covered by accumulating surplus, the pit boss collecting bit error.  That is amber, table quantization.

The ethereum boss is forcing everyone to keep the local integrating variables smooth, that insures that all excess over and under bit error accumulation gets noticed, and extinguished.

There might be a sneaky enforcement method, a black bot method.  Program the smart cards to take a mandatory re-charge break twice a week. I think this works, it tends to migrate the herd to a time synchronization.

How does this effect ethereum?
They guatrantee enforcement of contracts, but that only works when  there is an effective 'time out' for congested conditions on the block chain, a back pressure. They cannot guarantee there are always enough block chain toiler to keep up. They have not avoided the probability issue.  But, almost everywhere, meeting the congestion issue is enough, especially if their machine can do pretty firm, but reversible forks to support contract timeout.  That is where the trading pit comes in, it enforces a local mapping between rarity and time when it presses the bets.

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