Artifact 02ac66caed2ad9a54c2ccaa30ee4af34e8d5b4ef:
- File wiki/squid-fed.md — part of check-in [448e322da9] at 2018-02-06 22:54:24 on branch trunk — Dumb contracts explained (user: bernd size: 2520)
0000: 5b 75 70 5d 28 73 71 75 69 64 2e 6d 64 29 20 5b [up](squid.md) [ 0010: 62 61 63 6b 5d 28 73 71 75 69 64 2d 6d 69 6e 69 back](squid-mini 0020: 6e 67 2e 6d 64 29 20 5b 6e 65 78 74 5d 28 73 71 ng.md) [next](sq 0030: 75 69 64 2d 63 6f 6e 74 72 61 63 74 73 2e 6d 64 uid-contracts.md 0040: 29 0a 0a 23 20 54 68 65 20 44 65 63 65 6e 74 72 )..# The Decentr 0050: 61 6c 20 42 61 6e 6b 0a 0a 4f 6e 65 20 71 75 65 al Bank..One que 0060: 73 74 69 6f 6e 20 69 73 20 6c 65 66 74 20 66 6f stion is left fo 0070: 72 20 61 20 64 65 63 65 6e 74 72 61 6c 69 7a 65 r a decentralize 0080: 64 20 6d 6f 6e 65 74 61 72 79 20 73 79 73 74 65 d monetary syste 0090: 6d 3a 20 63 61 6e 20 79 6f 75 20 72 65 70 6c 61 m: can you repla 00a0: 63 65 20 74 68 65 0a 63 65 6e 74 72 61 6c 20 61 ce the.central a 00b0: 75 74 68 6f 72 69 74 79 20 74 68 61 74 20 63 72 uthority that cr 00c0: 65 61 74 65 73 20 61 6e 64 20 61 6e 6e 69 68 69 eates and annihi 00d0: 6c 61 74 65 73 20 6d 6f 6e 65 79 20 61 63 63 6f lates money acco 00e0: 72 64 69 6e 67 20 74 6f 20 74 68 65 20 61 63 74 rding to the act 00f0: 75 61 6c 0a 6e 65 65 64 73 20 74 6f 20 6b 65 65 ual.needs to kee 0100: 70 20 69 74 20 63 69 72 63 6c 69 6e 67 2c 20 77 p it circling, w 0110: 69 74 68 20 61 20 64 65 63 65 6e 74 72 61 6c 69 ith a decentrali 0120: 7a 65 64 20 73 79 73 74 65 6d 3f 0a 0a 43 65 6e zed system?..Cen 0130: 74 72 61 6c 20 62 61 6e 6b 73 20 67 69 76 65 20 tral banks give 0140: 6d 6f 6e 65 79 20 74 6f 20 62 61 6e 6b 73 2c 20 money to banks, 0150: 69 6e 20 66 6f 72 6d 20 6f 66 20 63 72 65 64 69 in form of credi 0160: 74 73 2e 20 20 42 61 6e 6b 73 20 67 69 76 65 20 ts. Banks give 0170: 74 68 61 74 20 6d 6f 6e 65 79 0a 74 6f 20 74 68 that money.to th 0180: 65 69 72 20 63 75 73 74 6f 6d 65 72 73 2c 20 69 eir customers, i 0190: 6e 20 66 6f 72 6d 20 6f 66 20 63 72 65 64 69 74 n form of credit 01a0: 73 2e 20 20 54 68 65 20 69 64 65 61 20 62 65 68 s. The idea beh 01b0: 69 6e 64 20 74 68 61 74 20 69 73 20 74 68 61 74 ind that is that 01c0: 20 69 6e 20 6f 72 64 65 72 0a 74 6f 20 70 72 6f in order.to pro 01d0: 64 75 63 65 20 67 6f 6f 64 73 20 74 68 61 74 20 duce goods that 01e0: 61 72 65 20 66 69 6e 61 6c 6c 79 20 63 6f 6e 73 are finally cons 01f0: 75 6d 65 64 2c 20 79 6f 75 20 6e 65 65 64 20 74 umed, you need t 0200: 6f 20 69 6e 76 65 73 74 20 75 70 2d 66 72 6f 6e o invest up-fron 0210: 74 2c 20 62 75 79 0a 74 68 65 20 69 6e 63 72 65 t, buy.the incre 0220: 64 69 65 6e 74 73 2c 20 73 70 65 6e 74 20 6d 6f dients, spent mo 0230: 6e 65 79 20 6f 6e 20 74 68 65 20 77 6f 72 6b 2c ney on the work, 0240: 20 61 6e 64 20 66 69 6e 61 6c 6c 79 2c 20 77 68 and finally, wh 0250: 65 6e 20 74 68 65 20 67 6f 6f 64 20 69 73 20 73 en the good is s 0260: 6f 6c 64 0a 74 6f 20 74 68 65 20 63 6f 6e 73 75 old.to the consu 0270: 6d 65 72 2c 20 79 6f 75 20 63 61 6e 20 70 61 79 mer, you can pay 0280: 20 62 61 63 6b 20 79 6f 75 72 20 63 72 65 64 69 back your credi 0290: 74 2c 20 61 6e 64 20 73 68 61 72 65 20 79 6f 75 t, and share you 02a0: 72 20 70 72 6f 66 69 74 20 77 69 74 68 20 74 68 r profit with th 02b0: 65 0a 63 72 65 64 69 74 6f 72 20 28 74 68 65 20 e.creditor (the 02c0: 69 6e 74 65 72 65 73 74 20 72 61 74 65 29 2e 20 interest rate). 02d0: 20 54 68 65 20 63 65 6e 74 72 61 6c 20 62 61 6e The central ban 02e0: 6b 20 64 6f 65 73 6e 27 74 20 71 75 69 74 65 20 k doesn't quite 02f0: 6e 65 65 64 20 79 6f 75 20 74 6f 0a 73 68 61 72 need you to.shar 0300: 65 20 74 68 65 20 70 72 6f 66 69 74 20 77 69 74 e the profit wit 0310: 68 20 74 68 65 6d 2c 20 73 6f 20 74 68 65 69 72 h them, so their 0320: 20 69 6e 74 65 72 65 73 74 20 72 61 74 65 20 69 interest rate i 0330: 73 20 6d 6f 72 65 20 61 20 63 6f 6e 74 72 6f 6c s more a control 0340: 0a 69 6e 73 74 72 75 6d 65 6e 74 20 74 68 61 6e .instrument than 0350: 20 61 20 70 72 6f 66 69 74 20 74 6f 6f 6c 3b 20 a profit tool; 0360: 74 68 65 79 20 63 61 6e 20 61 6c 73 6f 20 69 73 they can also is 0370: 73 75 65 20 6d 6f 6e 65 79 20 77 69 74 68 20 6e sue money with n 0380: 65 67 61 74 69 76 65 0a 69 6e 74 65 72 65 73 74 egative.interest 0390: 20 72 61 74 65 73 2e 0a 0a 53 6f 20 69 6e 20 66 rates...So in f 03a0: 61 63 74 2c 20 74 68 65 20 73 79 73 74 65 6d 20 act, the system 03b0: 69 73 20 61 6c 72 65 61 64 79 20 73 6f 6d 65 77 is already somew 03c0: 68 61 74 20 64 65 63 65 6e 74 72 61 6c 69 7a 65 hat decentralize 03d0: 64 3a 20 54 68 65 20 63 65 6e 74 72 61 6c 20 62 d: The central b 03e0: 61 6e 6b 0a 6f 75 74 73 6f 75 72 63 65 73 20 74 ank.outsources t 03f0: 68 65 20 6a 6f 62 20 74 6f 20 65 76 61 6c 75 61 he job to evalua 0400: 74 65 20 74 68 65 20 61 63 74 75 61 6c 20 63 72 te the actual cr 0410: 65 64 69 62 69 6c 69 74 79 20 74 6f 20 62 61 6e edibility to ban 0420: 6b 73 2e 20 20 54 68 69 73 20 67 69 76 65 73 20 ks. This gives 0430: 61 0a 6c 6f 74 20 6f 66 20 70 6f 77 65 72 20 69 a.lot of power i 0440: 6e 74 6f 20 74 68 65 69 72 20 68 61 6e 64 2c 20 nto their hand, 0450: 61 6e 64 20 69 74 20 66 61 76 6f 72 73 20 62 69 and it favors bi 0460: 67 20 63 72 65 64 69 74 73 20 6f 76 65 72 20 73 g credits over s 0470: 6d 61 6c 6c 20 63 72 65 64 69 74 73 0a 28 74 68 mall credits.(th 0480: 65 72 65 2c 20 74 68 65 20 65 66 66 6f 72 74 20 ere, the effort 0490: 66 6f 72 20 76 65 72 69 66 79 69 6e 67 20 74 68 for verifying th 04a0: 65 20 63 72 65 64 69 62 69 6c 69 74 79 20 69 73 e credibility is 04b0: 20 73 6d 61 6c 6c 20 63 6f 6d 70 61 72 65 64 20 small compared 04c0: 74 6f 20 74 68 65 0a 6f 76 65 72 61 6c 6c 20 70 to the.overall p 04d0: 72 6f 66 69 74 29 2e 20 20 45 76 65 6e 20 66 75 rofit). Even fu 04e0: 72 74 68 65 72 3a 20 53 69 6e 63 65 20 74 68 65 rther: Since the 04f0: 20 62 61 6e 6b 73 20 68 61 76 65 20 74 68 65 69 banks have thei 0500: 72 20 6f 77 6e 20 6e 65 65 64 20 66 6f 72 20 6d r own need for m 0510: 6f 6e 65 79 0a 28 74 68 65 69 72 20 50 6f 6e 7a oney.(their Ponz 0520: 69 2d 73 63 68 65 6d 65 20 64 65 70 61 72 74 6d i-scheme departm 0530: 65 6e 74 2c 20 61 6c 73 6f 20 63 61 6c 6c 65 64 ent, also called 0540: 20 e2 80 9e 69 6e 76 65 73 74 6d 65 6e 74 20 62 „investment b 0550: 61 6e 6b 65 72 73 e2 80 9c 29 2c 20 74 68 65 79 ankers“), they 0560: 20 70 72 65 66 65 72 0a 74 6f 20 67 69 76 65 20 prefer.to give 0570: 74 68 65 20 63 65 6e 74 72 61 6c 20 62 61 6e 6b the central bank 0580: 27 73 20 6d 6f 6e 65 79 20 74 6f 20 74 68 61 74 's money to that 0590: 20 64 65 70 61 72 74 6d 65 6e 74 2c 20 61 6e 64 department, and 05a0: 20 69 74 20 63 72 65 61 74 65 73 20 73 74 6f 63 it creates stoc 05b0: 6b 0a 62 75 62 62 6c 65 73 2c 20 72 65 61 6c 20 k.bubbles, real 05c0: 65 73 74 61 74 65 20 62 75 62 62 6c 65 73 2c 20 estate bubbles, 05d0: 6f 72 20 65 76 65 6e 20 42 69 74 43 6f 69 6e 20 or even BitCoin 05e0: 62 75 62 62 6c 65 73 2e 20 20 52 65 61 6c 20 66 bubbles. Real f 05f0: 75 6e 64 69 6e 67 20 6f 66 0a 70 72 6f 6d 69 73 unding of.promis 0600: 69 6e 67 20 62 75 73 69 6e 65 73 73 65 73 20 64 ing businesses d 0610: 6f 65 73 6e 27 74 20 68 61 70 70 65 6e 2e 0a 0a oesn't happen... 0620: 53 6f 20 74 68 69 73 20 73 6f 72 74 20 6f 66 20 So this sort of 0630: 66 75 6e 64 69 6e 67 20 64 6f 65 73 6e 27 74 20 funding doesn't 0640: 77 6f 72 6b 20 74 68 61 74 20 77 65 6c 6c 20 66 work that well f 0650: 6f 72 20 74 68 65 20 69 6e 74 65 72 6e 65 74 20 or the internet 0660: 61 67 65 2c 20 77 68 69 63 68 20 69 73 0a 77 68 age, which is.wh 0670: 79 20 63 72 6f 77 64 66 75 6e 64 69 6e 67 20 68 y crowdfunding h 0680: 61 73 20 62 65 65 6e 20 69 6e 76 65 6e 74 65 64 as been invented 0690: 2e 20 20 54 68 65 20 69 64 65 61 20 68 65 72 65 . The idea here 06a0: 20 69 73 20 74 68 61 74 20 6d 61 6e 79 20 70 65 is that many pe 06b0: 6f 70 6c 65 20 67 69 76 65 0a 73 6d 61 6c 6c 20 ople give.small 06c0: 63 72 65 64 69 74 73 2c 20 61 6e 64 20 72 65 61 credits, and rea 06d0: 6c 6c 79 20 72 65 63 65 69 76 65 20 74 68 65 20 lly receive the 06e0: 6d 61 73 73 2d 70 72 6f 64 75 63 65 64 20 67 6f mass-produced go 06f0: 6f 64 20 77 68 65 6e 20 69 74 27 73 20 61 63 74 od when it's act 0700: 75 61 6c 6c 79 0a 70 72 6f 64 75 63 65 64 20 28 ually.produced ( 0710: 73 6f 20 75 6e 6c 69 6b 65 20 66 75 74 75 72 65 so unlike future 0720: 73 2c 20 74 68 65 20 63 6f 6e 74 72 61 63 74 20 s, the contract 0730: 69 74 73 65 6c 66 20 69 73 20 6e 6f 74 20 74 72 itself is not tr 0740: 61 64 65 61 62 6c 65 29 2e 20 20 54 68 65 0a 6d adeable). The.m 0750: 69 73 73 69 6e 67 20 70 6f 69 6e 74 20 69 73 20 issing point is 0760: 74 68 61 74 20 74 68 65 20 63 65 6e 74 72 61 6c that the central 0770: 20 62 61 6e 6b 20 64 6f 65 73 6e 27 74 20 73 74 bank doesn't st 0780: 65 70 20 69 6e 20 61 6e 64 20 67 69 76 65 73 20 ep in and gives 0790: 74 68 65 0a 63 72 6f 77 64 66 75 6e 64 65 72 20 the.crowdfunder 07a0: 63 72 65 64 69 74 73 2c 20 73 6f 20 74 68 61 74 credits, so that 07b0: 20 74 68 65 79 20 63 6f 75 6c 64 20 63 72 6f 77 they could crow 07c0: 64 2d 66 75 6e 64 20 77 69 74 68 20 61 20 6c 65 d-fund with a le 07d0: 76 65 72 2e 0a 0a 41 6e 64 20 73 6f 20 74 68 61 ver...And so tha 07e0: 74 27 73 20 74 68 65 20 64 65 63 65 6e 74 72 61 t's the decentra 07f0: 6c 20 62 61 6e 6b 3a 20 49 74 27 73 20 61 20 63 l bank: It's a c 0800: 72 6f 77 64 66 75 6e 64 69 6e 67 20 73 79 73 74 rowdfunding syst 0810: 65 6d 2c 20 77 68 65 72 65 20 70 65 6f 70 6c 65 em, where people 0820: 0a 68 61 76 65 20 74 6f 20 73 69 67 6e 20 66 6f .have to sign fo 0830: 72 20 74 68 65 20 72 69 73 6b 20 6f 66 20 74 68 r the risk of th 0840: 65 20 66 75 6e 64 2c 20 62 75 74 20 6e 6f 74 20 e fund, but not 0850: 66 6f 72 20 74 68 65 20 61 63 74 75 61 6c 20 6d for the actual m 0860: 6f 6e 65 79 20 e2 80 94 20 74 68 65 79 20 67 65 oney — they ge 0870: 74 0a 61 20 63 72 65 64 69 74 20 66 6f 72 20 74 t.a credit for t 0880: 68 61 74 2c 20 61 6e 64 20 6f 6e 6c 79 20 70 61 hat, and only pa 0890: 72 74 20 6f 66 20 74 68 65 20 6d 6f 6e 65 79 20 rt of the money 08a0: 70 61 69 64 20 75 70 66 72 6f 6e 74 20 68 61 73 paid upfront has 08b0: 20 74 6f 20 62 65 20 74 68 65 69 72 0a 6f 77 6e to be their.own 08c0: 2e 20 20 4f 6e 63 65 20 74 68 65 20 70 72 6f 6a . Once the proj 08d0: 65 63 74 20 69 73 20 66 69 6e 69 73 68 65 64 2c ect is finished, 08e0: 20 74 68 65 79 20 68 61 76 65 20 74 6f 20 70 61 they have to pa 08f0: 79 20 74 68 65 20 66 75 6c 6c 20 61 6d 6f 75 6e y the full amoun 0900: 74 20 74 6f 0a 61 63 74 75 61 6c 6c 79 20 67 65 t to.actually ge 0910: 74 20 74 68 65 20 70 72 6f 64 75 63 74 20 74 68 t the product th 0920: 65 79 20 6f 72 64 65 72 65 64 2c 20 62 75 74 20 ey ordered, but 0930: 74 68 61 74 20 77 61 79 2c 20 74 68 65 20 6d 6f that way, the mo 0940: 6e 65 79 20 6e 65 65 64 65 64 20 66 6f 72 0a 63 ney needed for.c 0950: 69 72 63 6c 69 6e 67 20 62 65 74 77 65 65 6e 20 ircling between 0960: 66 75 6e 64 69 6e 67 20 61 6e 64 20 70 72 6f 64 funding and prod 0970: 75 63 74 69 6f 6e 20 63 61 6e 20 62 65 20 63 72 uction can be cr 0980: 65 61 74 65 64 20 61 73 20 66 69 61 74 20 6d 6f eated as fiat mo 0990: 6e 65 79 2e 0a 0a 5b 75 70 5d 28 73 71 75 69 64 ney...[up](squid 09a0: 2e 6d 64 29 20 5b 62 61 63 6b 5d 28 73 71 75 69 .md) [back](squi 09b0: 64 2d 6d 69 6e 69 6e 67 2e 6d 64 29 20 5b 6e 65 d-mining.md) [ne 09c0: 78 74 5d 28 73 71 75 69 64 2d 63 6f 6e 74 72 61 xt](squid-contra 09d0: 63 74 73 2e 6d 64 29 0a cts.md).