Multiplication over time to facilitate peer-to-peer barter relationships

Kenji Saito, Eiichi Morino, Jun Murai

Research output: Chapter in Book/Report/Conference proceedingConference contribution

8 Citations (Scopus)

Abstract

A peer-to-peer complementary currency can be a powerful tool for promoting exchanges that make use of under-utilized computing resources in a trusted way. i-WAT[11] is a proposed such currency based on the WAT System[16], a polycentric complementary currency using WAT tickets as its media of exchange: participants spontaneously issue and circulate the tickets as needed, whose values are backed up by chains of trust. i-WAT implements the tickets electronically by exchanging messages signed in OpenPGP[3]. This paper proposes an extension to the design of i-WAT to facilitate trades. In particular, we propose additional "multiplication" tickets whose values increase over time. By deferring redemption of such tickets, the participants can receive the premium realized by increased debts of the issuers. A game-theoretical analysis shows that this feature is incentive-compatible: the issuers have no reason to strategically default despite the increased debts. A reference implementation of i-WAT has been developed in the form of a plug-in for an XMPP[5][6] instant messaging client. We have been putting the currency system with the proposed feature into practical use.

Original languageEnglish
Title of host publicationProceedings - Sixteenth International Workshop on Database and Expert Systems Applications, DEXA 2005
Pages785-789
Number of pages5
DOIs
Publication statusPublished - 2005 Dec 1
Event16th International Workshop on Database and Expert Systems Applications, DEXA 2005 - Copenhagen, Denmark
Duration: 2005 Aug 222005 Aug 26

Publication series

NameProceedings - International Workshop on Database and Expert Systems Applications, DEXA
Volume2006
ISSN (Print)1529-4188

Other

Other16th International Workshop on Database and Expert Systems Applications, DEXA 2005
CountryDenmark
CityCopenhagen
Period05/8/2205/8/26

ASJC Scopus subject areas

  • Engineering(all)

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