From: Hal <hfinney@shell.portal.com>
Date: Fri, 7 Jan 94 13:34:43 PST
To: cypherpunks@toad.com
Subject: Softlock from alt.wired
Message-ID: <199401072132.NAA05072@jobe.shell.portal.com>
MIME-Version: 1.0
Content-Type: text/plain


Saw this on alt.wired.  They are creating electronic vouchers which you
can use, in effect, to buy software on the net.  I have more comments
below:

> Newsgroups: alt.wired
> Path: portal!sdd.hp.com!sgiblab!swrinde!cs.utexas.edu!howland.reston.ans.net!newsserver.jvnc.net!jvnc.net!exit14tty21.jvnc.net!user
> From: Schull@SoftLock.com (Jon Schull)
> Subject: Re: Time for an Internet Electronic Funds Transfer Protocol?
> Message-ID: <Schull-040194174238@exit14tty21.jvnc.net>
> Followup-To: alt.wired
> Sender: news@tigger.jvnc.net (Zee News Genie)
> Nntp-Posting-Host: exit14-tty21.jvnc.net
> Organization: SoftLock Services
> References: <35218@mindlink.bc.ca> <2fnvni$99h@inca.gate.net> <CIysJ9.4yA@world.std.com> <pfarrellCIyuL0.Hr9@netcom.com>
> Date: Tue, 4 Jan 1994 22:49:49 GMT
> Lines: 46
> 
> 
> I think we at SoftLock Services are pretty much there already.  
> 
> We have an automated, 24 hour 800 number set up for sale of anyone's
> products.
> Dial 1-800-SoftLock. 
> 
> We respond to Email.  (Send something to Intro@SoftLock.com)
> 
> We take VISA, MasterCard, and SoftLock Vouchers. 
> (SoftLock Vouchers are  pre-paid virtual certificates, redeemable by Email
> for
> anything we sell.  Since you get to determine the value of the Voucher, 
> you 
> risk only the value of your Voucher.) 
> 
>  We have a license from  RSA to use the  DES- and public-key-based RIPEM
> for 
> secure Email transactions.  And since we'll soon be selling Passwords by
> return  Email, the purchaser's risk and delay-of-gratification can be
> virtually zero.  
> 
> And we give away the Tools for creating SoftLocked documents and
> executables,
> (freely copyable,   partially encrypted, and instantly unlockable with a
> workstation-specific SoftLock Password).  So anyone can sell anything
> online,
> or off.  For example,  The SoftLock DOS document toolkit, for example, will
> soon be available for free at popular internet sites, and can be ordered
> for
> $9.99 as ProductNumber 10011 from 1-800-SoftLock.   
> (When asked for a SoftLockID, you can press 30639668).  
> 
>  P.S.  We're still shaking this stuff down (and Passwords@SoftLock.com is
> still in chains), but we're open for business.    
> 
> Please inform  me or Staff@SoftLock.com now if you have any problems,
> questions, or propositions!
> ------------------------------------------------------------------------------
> A 400-line press-release, "SoftLock Services Introduces SoftLock Services"
> is
> automatically available from the Email robot at IntroLong@SoftLock.com.   
> 
> Jon Schull              Schull@SoftLock.com               (716)-242-0348
>         "You trust your mother, but you still cut the cards.  
>                  SoftLock makes for a good game."

I got the press release referred to.  The business is to provide passwords
to unlock advanced features of software products distributed like shareware.
You can use a crippled version of the program for free, but to get the
advanced features you call Softlock and pay them money, then they give you
a code which unlocks all the program's features.  Softlock takes a percentage
of the fee and passes the rest on to the developer.

This is not that new, but one thing they do have is a pre-paid voucher
usable to purchase software password codes.  When you buy a new password to
unlock a program you can pay electronically by MC/VISA or by voucher.  (You
can also send checks and cash by postal mail.)

Presumably these vouchers could be given as gifts, or exchanged in other
ways.  If Softlock eventually develops a good range of useful software, this
could lead to a grass-roots form of electronic money.  It would be backed by
the Softlock software products, but could eventually be used to buy other
things, because people would know that the vouchers were worth real products
so they would accept them.  This route to backing money seems to have less
problems with the banking laws, etc.

The specific Softlock vouchers are not anonymous, I'm sure.  Anonymity would
add a lot of overhead and complexity in working with them (see our earlier
discussions of Chaumian cash).  But they could be a start towards a net-wide
electronic payment system.

The Softlock people are somewhat crypto aware, accepting RIPEM messages,
which is good if you want to send your VISA card number to them.  I wonder if
they might be interested in a more cryptographically advanced untraceable
voucher system.

Hal