Smart Contracts - the format

Any contract.  Any monetary transaction.  Works with any language.  The format is simple and understandable.  Works for finance.  Works for legal.  Works for IT.

While it works to store past transactions, open transactions provide an exchange, so it works for stock exchanges, currency exchanges, or grocery store transactions.


One table with 5 columns:

Transaction ID

Commerce ID - person/entity identifier
Item Type - initiating value, terms, value, delivery, notice, status
Description - quantity and value OR terms OR status/notice messages
Time Stamp

Example - Selling 100 IBM for a final price of 4900 USD:

Initiating a transaction, 100 IBM, myCommerceID

Terms, 5000 USD, myCommerceID

Corresponding Value, 4900 USD, hisCommerceID

Accepted, contract, myCommerceID

Delivered, 100 IBM, myCommerceID

Delivered, 4900 USD, hisCommerceID

Completed, completed, myCommerceID

Completed, completed, hisCommerceID

Example - Buying 100 IBM for a final price of 5100 USD:

Initiating a transaction, 5000 USD, myCommerceID

Terms, 100 IBM, myCommerceID

Corresponding Value, 100 IBM, hisCommerceID

Modification, 5100 USD, hisCommerceID

Accepted, contract, myCommerceID

[deliveries on both sides of the contract]

1. Note the identical structure for both the Bid and Ask.  Everything is a commodity.

2. In-process transactions create a market place for goods and services.

3. The standard format allows other companies to participate.

The above is what I term a "transaction stack".

A public list of transactions (open and completed)

In a standard format, with a Commerce ID for privacy (what some call a "smart contract").

It works with all currencies and barter too.


Example:
1. Make an offer to purchase.
2. Describe terms.
3. Receive a counter-offer.
4. Agreement (contract)
5. Deliver on each side.
6. Completed.

Time-stamps at each stage.

Block-chaining the list of transactions is one solution to prevent faked results.



Below describes the details of this.  It solves the idea of "money".

The System, as it works today.

How many new bonds did the Fed purchase today?  30 years to repay.  How many infants born today?

Get to work little debt-slaves.  Mommy and Daddy spent it.


300,000,000 debt-slaves vs. the Federal Reserve.  Class-action lawsuit.

All Americans are plaintiffs.  Including you!

300,000,000 Debt-slaves vs. the Federal Reserve

A class-action lawsuit appears possible.  Fraud is alleged and I think can be clearly proven.  Based on my analysis, I think a conservative ruling would be to force the Fed to only lend what they have with a monetary judgement of $100-500 billion.  As the numbers are large, I suggest a 1% contingency to the lawyer so $1-5 billion.  Each American would receive around $1,000.  Forcing the Fed to only lend what they have would place enormous pressure on Congress to balance their budget.

Basic argument
When the Federal Reserve Act was written, there was collateral.  That collateral was confiscated in 1933 domestically, and 1971 internationally.

Under basic contract law, a contract can be declared null and void if there is insufficient consideration conveyed.  So, if the Fed is purchasing $100,000 T-bonds for essentially creating digits in an account or writing a check, the Fed is not conveying consideration.  While the Treasury receives something of value, the Fed does not take risk or convey anything that would be considered valuable from their perspective.  Therefore, the T-bond contract can be declared null and void under contract law.  (Legislation cannot supersede basic contract law.)

Background
Open market operations have two separate parts. 1. Is the initial bond purchase from the treasury.  That is a purchase with no risk with a marginal cost of zero. 2. Is sitting on the bid and ask to adjust interest rates via buying and selling existing bonds in their portfolio.

I am referring to part one above. That is the origin of the creation or manufacture of money. Government spends it through various contracts. It does not get into the hands of the population until many have marked up the cost. It is an ineffective distribution mechanism. I also submit that it is illegal lending to the government and the fed assumes no risk.

History
Treasury bonds were designed in the mid-1860s during the Civil War.  Bankers on both sides of the pond exchanged a series of letters.  They were trying to figure out how to keep the population (white and black) as slaves without them knowing they were slaves.  Thus, they invented T-bonds.  It took them 50 years to get it through Congress with the Federal Reserve and income tax system installed in 1913.  Why 50 years?  Because many people at that time understood money and gold, so it was difficult to push through.  See the 1890s and The Yellow Brick Road and the Cross of Gold.  Subsequent generations carried through on the bankers' slavery system.  (FYI, I have been unable to locate copies of those letters on the internet recently.  I read them about 8-10 years ago.)

Visions of the future

Lawrence Summers wrote a good article in the WSJ about lack of jobs due to automation.

Currency is a product manufactured by the central banks.  Due to centralization of the distribution system (eg. Wall Street and Washington DC), 90% of the population does not receive sufficient product (currency).  People are forced to work to purchase that product.  That requires jobs.

If, for example, taxi drivers are replaced by robots, taxi drivers will not have a way to purchase that currency.  Without currency, taxi drivers will be begging on the street.

Many wealthy do not see this as a concern, but it is.  If people do not have a way to purchase currency to purchase food, they will steal the currency from the wealthy. Identity theft and other tactics.

Also. Another concern is if a robot taxi driver picks you up and a hacker decides to drive the car off a ravine, who would ever know?

I reverse-engineered the idea of money and arrived at the solution to all of the above problems (described below).

Bitcoin 2.0?

In my opinion, Bitcoin 2.0 will not be a currency. It will be a "block chain" of all electronic transactions regardless of what was conveyed. This requires a standard format. I thought that format through and there is really only one result. Promise Language describes it.

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.