Tuesday, February 20, 2018

Digital goods and non-digital goods

We have to distinguish these and not they are treated the same in the sandbox.  These are not 'assets' in the sense of being ownership protocols, these are things desired. A toaster is non digital, Matt Levine's column is digital. 

Goods  have owner protocols, so for example, the owner protocol might require an ad in the order book. I cannot get my good without covering the owner's requirement, say showing an ad on my computer screen, or paying th author a dime.

The sandbox ability to micro-price is universal, it is the standard method of keeping queues from exploding.  Prior to micro pricing the buffer management in Internet was a round trip, too many waiting at one end,  send a slow down message to the source.

We change the running trip congestion protocol to a one way. If  too many are waiting at the destination, the items waiting in the queue will drop out or pay the congestion price, on the spot.  Queue management simply get exposed as a pricing function. From the point of view of internet engineer, the bots are simply allocating for computer resources as they trip through the net.

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