[p2p-research] Trust Relationships in P2P Networks

[Alex Rollin]

The followoin came through the Ripple list.

I wondered if others would agree that bilateral and multilateral trust  
can occur in a P2P Network and that this would by definition form a
Commons when the trust ia multilateral.  There may be an inter-network  
commons then like the bank below that also enjoyed multilateral trust  
as a resource offering asset use value to multiple networks.

A

Begin forwarded message:

> From: danny jp <dannyjpw at gmail.com>
> Date: July 29, 2010 12:10:06 PM GMT+02:00
> To: rippleusers at googlegroups.com
> Subject: Re: outside money
> Reply-To: rippleusers at googlegroups.com
>

> Trust relationships are not primarily public and private.
>
> They are bilateral and multilateral. An example of a bilateral trust  
> relationship is a ripple connenction or the relationship between a  
> buyer of a corporate bond and the seller of it.
>
> An example of a multilateral relationship is that between private  
> individuals and a bank. Many people trust the bank to pay.
>
> The  trust relationship upon which our whole economy is based is as  
> follows:
>
> 1) individuals trust banks but not one another, hence they clear  
> transactions between them using a bank (banks enjoy limited  
> multilateral commitment from individuals)
> 2) banks trust the government but not one another, hence they clear  
> transactions between them using the central bank (aka government)
> 3) everyone trusts the government (enjoys full multilateral  
> commitment)
>
> belief in deposit insurance comes from (3).
>
> the reason we use public debt as outside money is that it is easier  
> to trust taxpayers to meet future commitments (since they can be  
> compelled to pay) than it is a given private bank.
>
>
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