Archive of UserLand's first discussion group, started October 5, 1998.

Re: Music economy & internet: the real roadblock

Author:Wesley Felter
Posted:6/19/2000; 6:16:05 PM
Topic:Music economy & internet: the real roadblock
Msg #:17919 (In response to 17906)
Prev/Next:17918 / 17920

I've spent some time looking at the micropayment proposals floated around so far, and as far as I can tell they're not going to work, because of a basic flaw: they're secure at both ends and as a result cost too much. I don't really care if someone steals 5 cents from me, or at least not enough to make my computer into a fortress. Heck, I don't care if they steal $49.99, that's the limit on my potential loss today with credit cards. On the other hand, an artist depending on a steady stream of 5 cent deposits into her account does care about security. If it costs 1 cent to process a transaction with this assymetrical security constraints, the artist presumably would love the 4 cents deposited in her account just as much as a 5 cents deposit. Sounds to me like a great opportunity for an Internet based business, payment processing.

I agree completely. The key insight behind Millicent IMO is its relative lack of security. By reducing the risk, they eliminated the need for elaborate security schemes. The semi-offline structure of the system also reduces overhead costs.

I've often thought about starting a Millicent broker, but I've been busy, Sand Hill Road is a bit far from here";->", and I'm not sure if Compaq is willing to license their patent.

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