Promise Language basics

This is an EDI format/specification/standard/protocol for monetary transactions.  It is free.

Some terminology:
Wealth Storage - a vault or a bank.
Wealth Translation - currency exchange is an example.
Promise Assurance - credit card issuer or an underwriter are examples.
Promise Reporting - credit report agencies are examples.

Only living beings can make promises.

Officers of corporations make promises on behalf of the corporation they work for.  Officers take responsibility for delivery on their promises.

Simple format:

[transaction]
  [promise]
    1 pallet of 100 bills USD
  [endpromise]
  [promise]
    1 million Euros
  [endpromise]
[endtransaction]

Further details can easily be placed into that format.  Who.  When.  Time stamps.  Etc.

Legal can see that it conforms to what they term a legal contract.
Finance can assign risk and time to delivery.
IT can accurately represent it in a computer.

It fixes the world's economy.
It fixes the world's financial system.

Preventing a perpetual fee (for being born)

An EDI format for monetary transactions prevents a perpetual fee. EDI formats are free.

Bitcoin uses an algorithm designed by the NSA. Is there a back door on that algorithm? I do not know. However, knowing the people involved, I suspect there is. While Bitcoin (and other digital currencies) reduce the fees, it is not perfect.  So, how to prevent a perpetual fee?


All transactions can be described as:

Two people.

Promise.
Promise.

Deliver.
Deliver.

End transaction.

Time stamps on each stage clarify risk and accountability.

That is "Promise Language" - a simple EDI format to describe all transactions, regardless of currency. For free.

An EDI format and a fill-in form that is a legal contract

Promise.
Promise.

Deliver.
Deliver.

End transaction.


The above creates efficiency in electronic transactions by providing a standard format.  It also disobviates the need for a lawyer in every transaction.

Lawyers don't understand money or finance, however, draw up the contracts that define the interactions.  Reading through the legalese is difficult due to lack of a standard format:  Promise Language solves that.

Sometimes lawyers create a contract that finance people call a "derivative".  The contract is unnecessary and creates confusion that loses responsibility and accountability.  This is due to the lawyer's non-understanding of money and finance.

Potential issues with Bitcoin

Metaphorically (and digitally) speaking, are there 3 Bitcoins?

Was Bitcoin started on the 0 bit or the 1 bit?  Is there a switch/flapper?

A similar applies to the algorithm.  Is there a periodicity that is predictable and controllable?


I have not looked into these issues, however, are enough cause of concern to research... if I were planning a large investment.

Transactions without a lawyer, a banker, or a gun.

Two people.

One promise.
Another promise.

First delivers.
Second delivers.

End transaction.


Time stamps at each stage allow risk and responsibility to be defined.

Promise Language, a banking protocol, fixes the central banks' problems.

Complex transactions require precise terminology

Imagine you are part of a drug deal or a gun deal.  Tensions are high, heavily armed security on both sides.  Most deals don't end in gunfire due to a deliberate desire to rip off the other party, gunfights occur due to miscommunication.  What was promised?  What was delivered?

In central banking transactions, language differences exist between countries.  Expectations.  Assurances. 

Treaties and trust funds.  Undelivered promises.  Partially delivered promises.  Promises deliberately ripped off.

The above is why a common language to describe complex transactions in a structured way is needed.

Federal Reserve and other central banks in a world of Promise Language and Bitcoin

Promise Language and Bitcoin do not define price.  They allow value to be translated efficiently.

Currencies stabilize price.  Salaries and rents and mortgages do not change on a daily basis.


In other words, things are priced in USD not in Bitcoin or Promise Language.  That is one reason why Bitcoin and Promise Language work so well to settle internationally.


Interestingly Second Market is patterning an exchange based on existing gold.  Price fixing with derivatives.  Second Market is bringing an antiquated structure to Bitcoin.  While it appears well hooked up and will gain liquidity, I have mixed feelings on that exchange.

Gold failed because of storage issues AND price fixing via derivatives settled in dollars.  Second Market appears to be setting up the exact same system.  Price fixing twice a day is not necessary for any reason other than to create derivatives to set the price.  Is Second Market's CEO aware of this problem or is he simply cut and pasting gold structure and creating a company?

Bitcoin's role as part of central bank reserves

Central banks require a clearing settlement device among currencies.  Gold has served that function historically, however, has issues.  Namely: dollar-settled derivatives, requires a vault, and is difficult to transport.

Bitcoin solves these problems.

It is my suggestion that some focus and energy be placed in communicating the advantages of Bitcoin to the various central banks around the world.  This requires trading desks and exchanges to provide liquidity.  The German central bank comes to mind.

A common language to communicate value

Imagine going to Japan and not knowing a word of Japanese.  Your goal is to buy some salmon sushi.  With some pantomiming and lots of gesturing I think most people would figure out how to convey the value that is desired along with the amount of currency required, however, without a common language it would not be the most efficient transaction in the world.

Promise Language is that common language.  Human readable.  Simple.  Computer readable as well.

Promise Language describes monetary transactions

even in a world of undelivered promises.