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November 25, 2009

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FC7

"These experiences, along with others such as Second Life’s Linden Dollar economy, indicate that the future of money is not money itself."

Yes, this was the point I wrote about in http://iang.org/papers/fc7.html back in 2000: thinking about money as money was a waste of money. Financial cryptography applications had to be thought about as a holistic polymath approach, starting from the application down.

Hence, games have dominated the new money field; the game developers think about the game first and foremost. The money is added on as a feature, oriented to the application, developed integrally for the application, and not a plugin supplied by a bank.

(The conclusions of the FC7 observation for banks were not pretty, perhaps explaining why banks preferred the cash cow approach....)

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