From: monty.harder@famend.com (MONTY HARDER)
Date: Fri, 1 Sep 95 17:46:10 PDT
To: CYPHERPUNKS@toad.com
Subject: Re: A problem with anonymity
Message-ID: <8B04409.00030003D4.uuout@famend.com>
MIME-Version: 1.0
Content-Type: text/plain


TC> This is one thing that _bonding_ is designed to partially ameliorate. One
TC> posts a bond which is greater than the amount being carried, or at least is

  A variation of a bond is an escrow agent....

     Overload Alert: I use "escrow" here in the more mundane sense of
     the folks who collect your real estate taxes and homeowners'
     insurance from you 1/12th at a time along with your mortgage
     payment, for instance.

  If the buyer has a =nonymous= agent to recieve the payment, which is
only released to the seller upon proof(s) of performance (whether in
lump sum or on a schedule of staged payments tied to specific milestones
in a long-term project) then the buyer has someone to go after in the
event of such shenannigans.

TC> There are still scams and manouvers to thwart this reputation capital
TC> scheme. The agent planning to "defect" (default, split, abscond, renege,
TC> etc.) can try to pile up as many pending transactions as possible,
TC> anticipating that the various transactees will be unaware of each other.

  And the escrow method dynamically scales to meet this threat, whereas
the bond is static.

  Of course, the escrow agent will extract his pound of flesh, just as
any other form of insurance. Such is the nature of life.




 * A Liberal puts your money where his mouth is.
---
 * Monster@FAmend.Com *