James A. Donald
jamesd at echeque.com
Tue Feb 27 17:29:03 CST 2007
Ka-Ping Yee wrote:
> Have you heard of http://ripple.sf.net/? What do you
> think of it?
Brilliant insight, great idea, but suffers from the
critical mass problem that afflicts any proposal to
provide competition to the existing government run money
In addition to the critical mass problem, governments
tend to treat competition as illegal, once the
competition gets large enough to to make a dent -
observe what is happening to e-gold. E-gold is
attempting to comply with overbearing and intrusive
regulation to the great detriment of its business and
its customers, but the government has no intention that
it be possible for e-gold to comply. Of course a
decentralized system is a lot more resistant to this
than a centralized system such as e-gold. E-gold looks
like being the Napster of internet money - one that
showed the way, though it was ultimately suppressed.
Therefore, in my opinion, the best prospect for a
decentralized money system such as ripple is in some
activity that is already somewhat illegal, for example a
file sharing system, in which the participants grant
each other upload credits.
Ripple, as it stands at present, does not really address
the routing problem, (in the sense that the proposed
routing algorithm sucks), and indeed does not need to,
for there are very few participants. For a file
sharing system, would need to be more DHT like.
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