Connected sandbox nets

Bearer assets kept on the web net. Moved via block chain.

The Takeaway:

• With $63.2 million in fresh funding from 14 banks, Fnality is building tokenized versions of five major fiat currencies.
• The digitized fiat would be fully collateralized by cash held at central banks and is meant to solve the “cash on ledger” problem faced by other financial blockchain projects.
• The consortium says it is open to working with JPMorgan, whose JPM Coin project has similar aims.
• Fnality’s tech partner, Clearmatics, is building these systems on a private version of ethereum.

Fnality International is building the missing link in the banking blockchain.Formerly known as Utility Settlement Coin (USC), the newly rechristened U.K.-based project is developing blockchain versions of five major fiat currencies: the U.S. dollar, the Canadian dollar, the British pound, the Japanese yen and the euro. Led by former Deutsche Bank executive Rhomaios Ram, the consortium boasts an ample budget, having just raised $63.2 million from 14 shareholder banks.

At this point these nets need to consider instruction cache lockout, verify nodes in the contract graph with trusted miners who control passage past the contract node. All this can be guaranteed with a spectre based protocol in the instruction cache.  One needs 'cancel before timeout with fee' to cancel passage through the node is one party fears the other has reneged. With that change, the bearer asset net can access other ledger systems outside its own liquidity net.

Trusted miners greatly simplify contract verification on the web, up to some measurable probability f scofflaws.  This is how real banking works, one gains the extra liquidity by tolerating a sufficiently small list of scofflaws.

The rule is simple. If the contract requires verification that the counter party has completed its ledger entry.  If either party sees congestion or otherwise suspects the counter party ledger fail, then the suspecting party can cancel its own ledger entry, with an a fee increasing in time.  It is very similar to a entry and exit fee for trading pits; your willingness to pay a cancellation fee, if needed; that can be collateral, or  hedge, just like an entry fee. It causes risk equalization as scofflaws who cannot or will not keep the reserves are systematically outlawed from the contract.

In any event, we can see the sandbox flourish in front of our eyes.  The next big challenge is getting the New fed to adopt interfaces to these nets; or perhaps, have on of these nets take over the central bank function under contract with Congress.

If I started a new company, (my fifth fake company?), I would build a gateway, connect any of these liquidity nets with any other liquidity net.  I would first announce the new opportunity on this blog, then trick the venture capital folks to go search for this routing company, and in response the kids will create the company; bingo, a new unicorn. Works every time.  I think this can be assigned to Goldman-Sachs.  Can I just do that? Manipulate the market so GS has no choice, it was named the liquidity net router company? The New cisco?  Can I reach the kids at GS, tell them to strike now?  Watch for GS news, they have to respond somehow, see if their mathematicians are reading the blog.

Inside out trading pit:

Basically we need the 'inside out' trading pit. It uses cancel within timeout, keeps a node in every liquidity net. It is inside out because the trade is established, then the prequals checked in real time by verifying ledger transactions, within a known bound with a recall congestion fee.

Once we get congestion management, everything in sandbox comes from a construction set, with rules for connecting units or transaction flow that maintain commutative property in the turbulence of constricted flow. What we do is a lot like quantum computing, done in serial fashion.