[Webfunds-users] can systemics trader be used for hansa doller / digigold?

Fri, 30 Mar 2001 10:46:04 -0800

On 30 Mar 01, at 15:38, Rachel Willmer wrote:

> A market can be mounted for any sets of Ricardian Contracts (e.g. gold 
> against silver, palladium and platinum based on the DigiGold currencies) or
> gold against the Hansa dollar). But this doesn't just happen as a result of
> issuing the currency, the market has to be created and maintained.

This brings up a question I have about the Ricardo Exchange Server: what financial 
motivations will be built in to allow an exchange server to generate a profit for 
running it?  Will the server software allow the operator to charge commission for 
transactions?  Or will it allow advertising revenue or some other kind of revenue?  
Ideally, there should be a financial motivation built in that would motivate people to 
independently license exchange servers and set them up for trading between all 
possible combinations of Ricardo Issuances.  Wherever there would be any interest 
in trading, exchange servers would be set up, maybe even competing exchange 
servers both trading the same contracts, so that if one server was charging too high 
of commissions then others would step in and compete.

> Just in case there's anyone on this list who doesn't already know, my 
> interest in all of this stems from the fact we are currently busy 
> integrating support for the Systemics stuff inside our CashBox system, 
> which will enable us to provide an API for the use of these Ricardian 
> currencies within websites, in the same way that you can drive the E-Gold
> currency throught its Shopping Cart Interface (SCI).
> 

That sounds really cool.  The combined system should reach critical mass fairly 
quickly once it is out of beta, and then explode into universal usage.  If either 
Systemics or Intertrader stock were publicly traded, I'd definitely buy some, but I'm 
just a little investor, nowhere near big enough to qualify for venture capital 
investment.

I have a question about a CashBox press release dated Jan 15, 2001.

http://lists.intertrader.com/archives-private/news/2001/000002.html

Quote from the press release:
Ian Grigg, CEO Systemics Inc, said "The Intertrader CashBox
architecture solves the Loading Problem that has always bedevilled
Internet payment systems.  By providing an issuer-neutral platform for
conversions between one payment system and another, Intertrader is
showing the way ahead for the emerging field of independant market
makers."
End Quote

What did he mean by "Loading Problem"?  What is meant by payment system?  
and how will the conversion be done between one payment system and another?  
and what did he meant by independent market makers?  Is that the same as the 
market makers that currently sell e-gold?

It is my understanding that the exchange server is what will enable the conversion 
between currencies.  Ideally exchange servers should make market makers as 
they currently exist obsolete.  They will be replaced by two functions: traders on 
exchanges, and by banking customer service.  Hansa bank makes it difficult to 
open an account, but after Systemics reaches critical mass, there will be banks 
with ricardian issuance servers where it will be easy to open an account.  Putting 
value into the system will be as easy and costless as making a deposit in your 
bank.  People may even have their paychecks deposited automatically.

~ Vincent