From: "William H. Geiger III" <whgiii@amaranth.com>
Date: Thu, 31 Jul 1997 21:12:29 +0800
To: Adam Back <aba@dcs.ex.ac.uk>
Subject: Re: uncensorable net based payment system?
In-Reply-To: <199707311240.NAA00742@server.test.net>
Message-ID: <199707311307.IAA17412@mailhub.amaranth.com>
MIME-Version: 1.0
Content-Type: text/plain



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In <199707311240.NAA00742@server.test.net>, on 07/31/97 
   at 01:40 PM, Adam Back <aba@dcs.ex.ac.uk> said:

>Then I can have some net cash savings backed by the rights to 1Tb of
>bandwidth at 100 Mb/sec.  100 Mb/sec for 3 days.

>A problem with this is that the market prices of the assets is
>continually dropping.  How do I hedge against this.  Can I buy futures? 
>Sell 100 Mb/sec for 3 days now in exchange for 200 Mb/sec for 3 days in 1
>years time at an predicted equivalent value? 

Well I see some problems with this. Any increase in bandwith requires the
addition of hardware to accomplish it. It would be of little use to me to
have 100 Mb/sec for 3days considering the cost of installing the lines and
purchacing the extra equipment.

Also in a packet switching environment how do you plan on insuring any
amount of bandwith? The Backbone is not set-up for this. The only way in
the current enviorment that you can guarantee a given bandwith is by
having a dedicated connection point to point.

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William H. Geiger III  http://www.amaranth.com/~whgiii
Geiger Consulting    Cooking With Warp 4.0

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