Saturday, February 18, 2017

The simplest way to understand sandbox

Take a one dollar bill and scrape off the denomination. Replace that ink with the flex LCD that displays a histogram.  The histogram with maybe five bars tells you the probable denomination.

Now invent a wallet that can program these dollars, make change with hem honestly, setting the histograms properly, but using a histogram convolution and reduction, so change is always a histogram or likelihood chart.

Then you have paper cash, sandbox, no double spending, no forgery, no letter to Janet; cash, paper, exact paper, well except for the programmable histogram..

What the histogram does is enable the bots and the pits;they make autotrade work. Curtrency risk is always measured, and therefore priceable.

Now we can see how auto trade work in his environment.  When you have a pile of paper, with the LCD set to large, you want to go trade, on line.  But, undder the assumption of paper cash, we made wallets honest, they guarantyee honest double entry accounting.  We did that when we scraped off the ink and replaced it with an LCD, we implied the wallet was honest.

You, simple enough, tell the trading site you have set some denominations, in the stacl of paper at home, to zero; transferring their value to a trading bot in Sweden, where it, using long term storage, set some paper denominations to the values you dropped.  But the the bot is free to trade, as long as the paper in the data center is protected, it is the ledger.

In other words, a simple step by step warping from paper cash to full silicon sandbox, works, and proves the concept.. But the real revolution is price compression, the general solution to a double sided Black-Scholes. Onve that is in the pits, in yhe form of S&L, then you get a huge accelerator effect. Every trader wants to do business in the sandbox.

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