How does one gain trust without an authority?

Commerce between anonymous people is possible with a P2P database and open source.

A public record of one's previous transactions is reputation.


This is exchange software and payment processing software: a marketplace to sell any good or service including currencies and stocks.  It provides reputation, but does much more than that.  Anything of value can be traded freely.  Value-added services can be provided by new and existing companies.  It works with today's companies and allows new ones to thrive.

What is a Commerce ID™?

A Commerce ID™ uniquely identifies an individual or entity for the purposes of conducting commerce or monetary transactions.

The Commerce ID™ can be used once for a single transaction or re-used in multiple transactions.  It can be publicly associated with identifying information or kept private.

It allows accountability with total privacy, even if the record of transactions is public (eg. a P2P/peer-to-peer database).


An example of a Commerce ID™ would be a GUID (Globally Unique Identifier) that would be generated by the individual or entity.  That ID might be associated with a name or email or other identifying information.

Alternative Currencies

All currencies have pluses and minuses.  There is no holy grail of a perfect currency.

So the answer is to allow efficient translation between currencies.  This requires a standard language to create that efficiency.

It allows the individual to hold all their wealth in any form (eg. gold, land, wheat, rice, USD, Yen, Euro, Bitcoin, etc.), and have it "translated" electronically when conducting a transaction.

I term this "wealth translation".


Example:

A Visa card that debits your Bitcoin when you purchase something at the grocery store.  The grocery store receives currency of their choice, Visa debits your Bitcoin.  A "wealth translator" takes a small fee on the transaction.

See below for the working prototype.  An exchange software that works for any transaction (grocery store to central bank).

Since I am currently physically in Thailand...

I will talk from the Thai baht perspective.

There are 3 forms of baht:  gold, digital, and physical. Each has a different value.

Once upon a time, the physical correlated to physical gold. That is no longer the case, largely due to the digital abundance. Fractional-reserve.


Can the physical currency return to physical gold valuation? Baht to baht?  Yes, I think it is possible, however, it would require a wind down of digital currency mostly in financial instruments. This is simply moving money from one form to another. Existing wealth remains while pulling society out of poverty.   It also allows opportunities to build wealth.

The Federal Reserve and Fiscal Responsibility

When the Fed creates money to purchase bonds, the Treasury spends it. Where does that newly created money get spent? Government contracts.

Since the Fed is legally responsible for managing the economy and it is officially considered part of government, fixing that journal entry is possible: an accounting rule or legislation to ensure the Fed cannot create money to lend to the Treasury.

The above would not immediately balance the budget, but would place the Fed on the side of fiscal responsibility.