CreditExchange

Main.CreditExchange History

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September 27, 2010, at 12:58 AM by Daniel - formatting
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'''Credit Exchange'''
September 26, 2010, at 07:50 PM by Daniel - clean up
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There is a basic explanation of the Credit Exchange concept at [[Definitions]].

For this extended example, consider Node A, which can route payments between any three nodes B,C, and D.
to:
There is a basic explanation of the credit exchange concept at [[definitions]].

For this extended example, consider node A, which can route payments between any three nodes B, C, and D.
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A is more friendly with nodes B and C, less friendly with node D. So there is no transaction fees for payments routed B to C or C to B. Nor is there a transaction fee for routing payments where D is the payer. However, where D is the payment recipient, there is a transaction fee of 2%.

Node A's exchange rate table is
to:
A is more friendly with nodes B and C, less friendly with node D. So A charges no transaction fees for payments routed from B to C or C to B. Nor is there a transaction fee for routing payments where D is the payer. However, where D is the payment recipient, A charges a transaction fee of 2%.

Node A's exchange rate table is:
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Every node stores an exchange rate table like the above, which it uses when acting as a payment intermediary between any two neighbors.

A node could store a ridiculous exchange rate, like 1%, or 0%, to discourage exchanges it does not want to do. Alternatively, the party could register a second node to segregate credit exchanges it does not want to do.
to:
Every node stores an exchange rate table like the one above, which it uses when acting as a payment intermediary between any two neighbors.

A node could store a very high exchange rate to discourage exchanges it does not want to do. It could store a very low exchange rate (or no fee at all) to encourage exchanges it does want to do.
September 26, 2010, at 12:44 AM by Daniel - remove link to non-existent page
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A node could store a ridiculous exchange rate, like 1%, or 0%, to discourage exchanges it does not want to do. Alternatively, the party could register a second node to segregate credit exchanges it does not want to do. See [[Users,Parties, and Nodes]].
to:
A node could store a ridiculous exchange rate, like 1%, or 0%, to discourage exchanges it does not want to do. Alternatively, the party could register a second node to segregate credit exchanges it does not want to do.
March 08, 2008, at 05:18 PM by 190.33.59.5 -
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A is more friendly with nodes B and C, less friendly with node D. So there is no transaction fees for payments routed B to C or C to B. Nor is there a transaction fee for routing payments where D is the payer. However, where D is the payment recipient, there is a transaction fee of 2%. This situation could be diagrammed like so

to:
A is more friendly with nodes B and C, less friendly with node D. So there is no transaction fees for payments routed B to C or C to B. Nor is there a transaction fee for routing payments where D is the payer. However, where D is the payment recipient, there is a transaction fee of 2%.
March 08, 2008, at 05:17 PM by 190.33.59.5 -
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[[Definitions|Basic definition of credit exchange.]]
to:
There is a basic explanation of the Credit Exchange concept at [[Definitions]].
March 08, 2008, at 05:14 PM by 190.33.59.5 -
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There is a basic definition of credit exchange at [[Definitions]]
to:
[[Definitions|Basic definition of credit exchange.]]
March 08, 2008, at 04:48 PM by 190.33.59.5 -
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'''Credit Exchange'''

There is a basic definition of credit exchange at [[Definitions]]

For this extended example, consider Node A, which can route payments between any three nodes B,C, and D.

    C
    |
 B - A - D

A is more friendly with nodes B and C, less friendly with node D. So there is no transaction fees for payments routed B to C or C to B. Nor is there a transaction fee for routing payments where D is the payer. However, where D is the payment recipient, there is a transaction fee of 2%. This situation could be diagrammed like so


Node A's exchange rate table is

 B-A -> A-C: 1
 C-A -> A-B: 1
 B-A -> A-D: 0.98
 C-A -> A-D: 0.98

Every node stores an exchange rate table like the above, which it uses when acting as a payment intermediary between any two neighbors.

A node could store a ridiculous exchange rate, like 1%, or 0%, to discourage exchanges it does not want to do. Alternatively, the party could register a second node to segregate credit exchanges it does not want to do. See [[Users,Parties, and Nodes]].