Tuesday, December 20, 2016

Ratio algebra is not that difficult

If we consider the dsimple case, inventory flow is always expansionary.  Then, add units., and we find there are always N items to the case, when we consider containers quantized.

But that is not sustainable, maitaining quantization is a slight drain,the accumulation of bit error.  At each exchange, the standard saving sand loans takes a bid and ask, and soon compresses the bets, maintaing a distribution that represents a 3% error in pricing.  The rerdsulting probability graph is a tree, which when driven by the six bit random number generates a random typical sequence of deliveries.  Remember, each point of delivery is a priced event,on the spot, through the pit. (Pit.boss = MarketPrice Commercial)  It is market price because each match results in a probability graph that is as least as good as the last in measuring market price.

By construction, then the neutral &L always forces pricing to match the ratio between item and case, up the chain.  Ratio algebra works, the distribution of coin can be used as a common term, as in:
 $2 of apples and  $1 of peach, split the bit error..


Converting from probability to time is done as follows:'
'Trader A scans the S&L graph and finds reasonable probability of holding value on deposit. So he accepts digits from  trader B, and they go on deposit for trader A.  Then trader B delivers a goodie after going through some unrelated set of sequences, But trader B has inside knowledge of that sequence, and that allows him to contract with time units for delivery.  But it is completely outside the pit, it is smart contract.  The smart contract is going to be about time of expiration in about half the clauses.  Time, place, item, person and penalties.  It is a smart contract risk and invites the insurance companies.  Normally price is included, but the contract, after the pits, is priceless, except for penalties.  It is an agreement, already paid for.

Already paid for simplifies smart contracts quite a bit and nothing in the theory says ante or post is essential, except price is always marked to market at transaction time.

No comments: