Tuesday, January 17, 2017

Self trading with our cards

We can modify how our personal budgeting operates using the trading capability of our cards, as long as we set it up with one of the management apps.  Example, is transportation budgeting, paying for insurance, ectricity for the car, tires and the rest, who manages that?

You, you buy transportation trips from yourself.  In the morning, you tap your card on the auto, it has a price beacon.  Type in your destination at the dash.The price beacon reflects back an opening price. The price is compressed, you have debited and credits your accounts for the days travels.  Your card self traded.

The app you tapped, transportation, has an agreement with your card, the card will cover your transportation costs by deposits to 'cash', or just deposits, to cover the bills before they exceed variance.  If you exceed budget, prices might rise, warning you with a red on the card some morning.

We see the obvious layer separation
The app operates ay the smart contract layer, and it can be connected to something like gas buddy.  The possibilities afforded by the transportation contract are well defined.  But the contract has pricing points, like a road trip, certain  places to buy a room and fill up the car.
The app programs the card with a coin protocol, the card can balance the cost between hotel and gas and restaurant, try to maintin budget during the trip.  Its instructions come from the app, and gas buddy may be emphasizing low gas prices along the way, using your card.  This is why we will have the IoT.

It works because the sandbox can be honest, but probabilistic. The smart contracts can hedge all they want, and at any point in  the contract, mark to market, like a checkpoint.  Savings and efficiency abound everywhere with this model.

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