From:	Robert Watkins robert.watkins@******.com
Subject:	Cash, Credit and Crime
Date:	Fri, 2 Jul 1999 13:39:46 +1000

Doc' gives a lovely example of how a credstick works, which I've totally
snipped. Read his post if you want his ideas. This is my post, and it's got
my ideas!

Doc pointed out that the credit on the credstick isn't available until the
transactions are validated. One example in the modern world that might make
people understand a bit clearer is how cheques.

When you get given a cheque, you can't rush out and spend the money straight
away. You have to wait until you get the cheque to a bank, deposit it, and
wait the 5 days or whatever it takes for your bank to clear the cheque. This
"clearing" process is basically a validation of the cheque.

When you make a transaction with a credstick, the transaction still has to
be cleared. If the transaction was made with a card reader, connected to the
Matrix, it would get cleared pretty much straight away. If it's a
stick-to-stick transfer, or otherwise done offline, the clearance wouldn't
happen until BOTH sticks connect to a card reader and transfer their account
details up. Again, this is a validation process. Until the validation is
done, the money isn't transferred.

In many cases, a "holding" state is entered, however. As an example, take
credit cards. If you order, say, a desk to be made, and it's going to cost
$400. The furniture place will put a hold on your card, so that you have
$400 less to spend, ensuring that the money will be there when they go to
take it out. But you are not charged the $400 (and so don't get interest put
on, or (for a saving account) don't lose the interest you are earned) until
the furniture shop puts the money through.

--
.sig deleted to conserve electrons. robert.watkins@******.com