Tuesday, March 21, 2017

Blockchain and insurance companies

It applies the general rule of sandbox disruption, it replaces statistics of probability over time with odd of occurrence without replacement.

The block chain is a linked list of all known insurance pay ins and outs.  So, there exists filters, Turing complete, that operate over the block chain and can determine probability of occurrence to the precision of the filter and the block chain.  But, there is no other more accurate collection than the block chain (by assumption).  Hence, as long as the filter can select precisely, odds of occurrence,the maximum entropy bet, is known.

The trading pits are different a bit
Over the short uncertainty of arrival moment, the trading pits can switch order of arrival! They control time indexing a bit because the implied assumption that here is space on the loading dock and workers can shuffle around orders. That is why fair trading is important, give all trading bots a warning that an interest cost of shuffling orders is about to be imposed.  Interest is not due with time, but due with warning.

Why re-order liquidity events?
The pit boss is under contract to keeo odds of monetary loss within a bound.  Innovative interest costs ae the price we pay, our end of the bargain.  It works.
Price compression is actually a balance between a bit of expansion in one color and compression in the other, The balance is set by pit boss contract and determines probability of monetary loss or gain.

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