The logistics of digicash

That is where we assume transaction costs are zero.

Cash, bearer notes, always had and still have that assumed property. we ignore the cost of ATM trucks and those fees bundled into the bank fee. I think that is the definition of bearer note, the logistics is personal, the bearer may deposit the note at her leisure, and there is high confidence in its legitimacy.

Financial profit, any profit taken from a channel has to induce the enterprise into triple entry accounting, manage a profit generator. In our cash, the enterprise often eats the ledger costs down the road. The goal is for the customer and clerks to appear as a two color, keep profits mostly independent, and last in the channel.

Online, digicash means the buyer and seller literally defer the ledger cost, it is implied in the price, the liquidity net has an implied ledger fee which is almost white noise, bound.

So, a liquidity net running bearer micro-bitcoins implicitly collects micro-coins and calls the bitcoin ledger via the master wallet account.  It is rounding up and someone has accumulated enough micro-coins to request a ledger call.  Bearer bitcoins work just fine under spectre secure liquidity nets, they always defer to the master bitcoin account managed as a block chain node.  All the merchants can use this technique,deferring the ledger costs for bitcoin is a great way to generate liquidity when secure ID can enforce the double spend contract. We will all need spectre compatible hardware wallets.

Running an S/L with micro bitcoins is not a problem.  There will be an implied white noise expense due to fractional reserve banking, issuing more micro coins than can be proved on the bitcoin ledger.  Not a problem, clearly bound upper and lower, with scofflaw cops. But all account will often suffer the shared risk of bankruptcy and scofflaw losses. But all accounts get the optimum future bet, ex post, and pricing more accurate.  The utility boils down to obtaining risk equalized traders in the net, the one trader as about as accurate as any other. That generates the cash in advance concept, there is no better measure of risk than if one member just took cash from the group, or dropped cash into the group.

Flexible contracts make risk equalized groups.  If I can agree to to have my clicks watched then I can get credit.  The principle is simple, the more specifically, over time, I click on something, the more I know about it when I purchase. The hobby net concept is an example.  Members all know something specific about each other, they all construct foam airplanes, for example, as a hobby.  This is practically confirmed is the group allows their clicks and comments to be monitored. Most members pre-qualified as bonafide users of foam materials and tools.  So, here you have the hobby web site is a great place to install cash in advance, a specialized virtual credit card system, without the credit ban.

Depositors would drop their future purchases into their account, keep micro bitcoins on account, earning interest.  When a new batch of better foam is available, the credit is available, the Baumol process works, purchases become optimally scaled to be linear with S to L.  Having secure iPods with AppleID is a big winner in this market. All parties know there is an actual thumbprint.