Wednesday, October 24, 2018

Mostly a regulatory conflict

The problem remains unsolved of feeding a program with real-world data in a tamperproof way, or of running a currency peg without any risk to customers from dishonesty or incompetence by the party holding the reserves.

Larry White discussing the state of Bitcoin mentions this observation. 

The emphasis is on tamper proof, really means no secure smart card, no reliable  contract manager in the hands of the customer.  Banks will trusted the secure, anonymous smart card, more specifically, banks will make cash in advance possible with smart card and pre-quals. Cash in advance is algorithmic and require adjustments of deposits to savings on an algorithmic basis.

But we have made it, we have a finger print sensor on a released credit card.  Secure enough, the cash layer can remain on th server for now, but we can do cash in advance, algorithmically.  Open banking implies that the credit card with print sensor is available to apps everywhere, an algorithmic S&L technology has already been deployed, in a fashion.  

My  prediction holds, 2018 is the first year of deployment, the complete sandbox chain in operation.

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