Thursday, March 23, 2017

Smart contracts, time deposits and retirement plans

Good luck.

Time promises are the equivalent of promising strict likelihood of arrival at the entrance, and supporting volatile groups on exit. So I promise to keep the entry line at four people, generally. This is like promising to keep a job for five years! The account manager has a slight excess of saves over the market, he has base money.

There is a feedback.
 Time based contracts involve aggregation, and thus time plotters.  They will secretly plot to exit the contract, and the entrance queue drops to 1 or 2 peoples, and the volatile exits not supported. It is in the statement, "Retire in about ten years", the emphasis on 'about', it is the plus or minus one year where the plots take place, they have to make there jump before the pit boss gets the trick, they can snooker the currency banker.

The problem is the money leaves the sandbox, gets contracted to the third party and re-enters the sandbox.  Then the sandbox is divided between those who control the external path and those who don't, so the sandbox ends up pricing that risk internally, anonymously, and the plotters reveal their plan, the pension plans get net present valued, as if your time promise is worthless.

The trick is to run with a retirement basket; mostly on empty for a while then near full for a while, and bet accordingly.  The pits can figure it out. Unless your clock is always more accurate than any other, do not make time promises in the sandbox.

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