--- begin forwarded text X-Sender: rah@pop.sneaker.net Mime-Version: 1.0 Date: Wed, 13 May 1998 12:54:33 -0400 To: Digital Bearer Settlement List <dbs@philodox.com> From: Robert Hettinga <rah@shipwright.com> Subject: Philodox Symposium: Digital Bearer Transaction Settlement Sender: <dbs@philodox.com> Precedence: Bulk List-Subscribe: <mailto:requests@philodox.com?subject=subscribe%20dbs> X-Web-Archive: http://www.philodox.com/dbs-archive/ -----BEGIN PGP SIGNED MESSAGE----- Announcement Date: May 13, 1998 The Philodox Symposium on Digital Bearer Transaction Settlement The Downtown Harvard Club Boston, Massachusetts July 23-24, 1998 Philodox Financial Technology Evangelism, of Boston, Massachusetts, in association with the Digital Commerce Society of Boston, announces the first in a series of symposia, conferences and workshops on the subject of digital bearer transaction settlement. The first of these gatherings, a symposium examining the technology, economics, markets and law of digital bearer settlement, will be held at the Harvard Club of Boston, Thursday and Friday, July 23 and 24, 1998. What is Digital Bearer Settlement? A digital bearer transaction is one where a cryptographically secure value-object, issued and underwritten by a third party, is exchanged between the two parties in a trade, typically over a public internetwork. The object, when passed in trade for something else of value, executes, clears, and settles the transaction instantaneously, securely, and, usually, anonymously. And, at considerable savings in transaction cost compared to "book-entry" transactions, such as credit and debit cards, checks, and modern securities clearing methods. It is estimated that $100 billion in transactions are being executed on the internet annually. 40% of all retail stock trades are now executed from the net, for instance. If it's possible to properly call a credit card transaction transmitted under Secure Socket Layer to be settled and cleared on the net itself, then an estimated maximum of $10 billion of those transactions, 10%, are actually cleared and settled on the net, with marginal market share to other transaction protocols. By comparison, $3 trillion in foreign exchange transactions are executed, cleared and settled every day, using standard book-entry processes. There are electronic check and debit protocols in experimental development, but, as transaction settlement time tends towards the instantaneous, the more cost, security, and non-repudiation advantages there are for digital bearer settlement. It is not unreasonable to see how transaction costs can be reduced enormously by digital bearer settlement, possibly by several orders of magnitude over any analogous book-entry method. It is completely conceivable that digital bearer transactions, of all kinds and sizes, from macrobonds to micropayments, will be executed, cleared, and settled on ubiquitous global internetworks, and will become the dominant transaction mechanism over time on those networks, and, by extension, in the global economy in general. It may happen sooner than we can imagine. Electronic book-entry settlement itself is only 40 years old at best, and internet financial cryptography and digital bearer settlement are much more a phenomenon of collapsing microprocessor prices than electronic book-entry settlement ever was. The Philodox Digital Bearer Transaction Settlement Events Towards that end, Philodox has taken it upon itself to focus the attention of the information technology, financial and legal communities onto the technology of digital bearer settlement though the following series of events. First, this initial Symposium of professionals interested in digital bearer settlement, to be held in Boston. Then, contingent on interest, a peer-reviewed Financial Research Conference to be held during the winter of 1998-99 in Manhattan or Washington, followed by a small Developer's Conference in the spring of 1999, held in more casual surroundings, and, finally, a teaching Workshop for Financial Professionals held in the summer of 1999 at a resort location, probably Bretton Woods, New Hampshire. It is hoped by Philodox that some, or perhaps, all, of these events will be recurring ones, and of course, that they will increase in attendance over time. The Symposium Each section of the Symposium agenda will consist of a short presentation on the topic by the most expert symposium participant on the subject present, followed by discussions led by a moderator. While it is not expected that everyone will even be conversant on each topic, it is expected that participants will bring their own particular expertise to bear on specific elements of the symposium program, and, of course, not everyone will have to present something. We have a lot to teach each other, but, fortunately, most of the people who are interested enough in this topic to come to this first symposium will know more than enough to have at least some opinions on the topics under discussion, and will certainly want to share those opinions with everyone else. Finally, there are lots of differing opinions this subject, so expect some animated discussion. Because of the expected demand and the size of the Harvard Club space we're using, participation in the symposium will be limited, and advance registration will be required. See below for details. The Symposium Agenda Agenda The Philodox Symposium on Digital Bearer Transaction Settlement The Downtown Harvard Club of Boston July 23-24, 1998 Thursday, July 23, 1998 (Club Dress Code: jacket and tie, no jeans or sneakers) 0730-0830: Check-in, Breakfast 0830-0845: Welcome 0845-1015: History of Bearer Transaction Settlement How old is bearer settlement? Why should we think about physical bearer settlement? What were the market models for underwriting digital bearer instruments? What sanctions prevented non-repudiation? What happened to physical bearer settlement? What is digital bearer settlement? How was it invented? What is the status of digital bearer settlement now? 1015-1030: Break 1030-1200: Digital Bearer Settlement Technology Survey and Forecasts What are the different digital bearer settlement protocols? How do they work? Which ones are on the market today? What are some of the technical limits of these protocols? Can they be overcome and do they need to be? What kinds of technology is in the labs? 1200-1300: Lunch 1300-1500: Bearer Settlement Legal/Regulatory Survey and Forecasts How did we get transaction regulation in the first place? What are the legal restrictions on bearer transactions in general? What are the laws on strong cryptography? How do the above laws and regulations effect the prospects for digital bearer settlement? What effect will cash-settled, and possibly anonymous, digital auction markets have on intellectual property rights? 1500-1515: Break 1515-1715: Possible Legal/Regulatory Solutions What can be done about bearer settlement law and regulation? Are there ways that internet digital bearer settlement can coexist with book-entry settlement laws? Will the potential cost savings overcome the need to regulate? What about intellectual property laws? Should there be a legislative/regulatory strategy? If so, what would it look like? 1730-1930: Reception, Cocktails and Hors d'Oeurves Friday, July 23, 1998 (Dress Code: "business casual", no jeans or sneakers) 0800-0830: Breakfast 0830-0845: Announcements 0845-1015: Internet Transaction Settlement Economic/Financial Survey and Forecasts What is the annual dollar volume of all transactions worldwide? How are they broken up by payment mechanism? What is the actual and forecasted dollar volume of internet transaction execution? How will those transactions clear and settle? What are the current clearing and settlement costs? What are the expected costs of internet digital bearer settlement? What is the micro- and macroeconomic impact of a digital bearer settled economy? 1015-1030: Break 1030-1200: Capital Market Applications for Digital Bearer Settlement What kinds of securities can you create digital bearer instruments for? How do they work? How do you vote stock, collect dividends, etc.? Can you really do limited liability in software, without law? What size transactions can be cleared and settled like this? How much transaction volume can a digital bearer market handle? 1200-1300: Lunch 1300-1430: Other Market Applications for Digital Bearer Settlement Just how ubiquitous can the internet be? Can you create cash settled pay-per-use utilities? Even roads? Digital bearer gambling tokens? "Digital Collectibles"?? Lions, and tigers, and bears: "Perfect kidnappings", "crypto-anarchy", auction markets for force, geodesic warfare, the end of civilization as we know it, and other monsters under the bed. 1430-1445: Break 1445-1630: New Product/Market Ideas for Digital Bearer Settlement Who are the entrepreneurs? What else can we do with digital bearer instruments? When is the transition to digital bearer settlement going to happen? Where's the most bang for the buck, right now? How are we going to make money on this? 1630-1645: Closing Symposium Cost and Registration The cost for the Philodox Symposium on Digital Bearer Transaction Settlement is $447, payable by company check or personal money order to "Philodox", and sent to Robert Hettinga, Philodox Financial Technology Evangelism, 44 Farquhar Street, Boston, MA, 02131, USA. Massachusetts residents should add 6% sales tax. Please contact Robert Hettinga <mailto:rah@philodox.com>, or <mailto:rah@shipwright.com> for wire instructions if it is necessary to make your payment by bank wire. Include the participant(s) name, shirt size, email address, and company affliation, if applicable, with your check or money order. Confirmation of your check and your Symposium seat will be sent by email. If you pay by wire, please notify Mr. Hettinga by email that you intend to do so, and include in your email the other requested information. In order to organize the Symposium properly, payment must be received by Philodox no later than noon, Thursday, July 9th, 1998. Again, attendance to the Symposium is limited, so please register as soon as possible to assure your seat. The Symposium fee goes towards conference room rental, breakfasts, lunches, a cocktail reception on Thursday night, snacks, audio-visual rental, internet access on-site, various mementoes of the occasion, and, of course, Philodox's event management fee. Scholarships A small number of scholarship fee-waivers will be available, contingent upon direct sponsorship and the size of the Symposium, to be selected by Philodox and based upon the applicant's financial need and ability to contribute to the symposium. Please contact Robert Hettinga, <mailto: rah@philodox.com>, or <mailto: rah@shipwright.com>, if you want to request a fee-waiver. Sponsorship In addition to direct event and website sponsorship opportunities, including the possiblity of exhibition space, there are several in-kind sponsorship opportunites available, particularly in the areas of audio-video services and internet services, including internet access, web-casting and web-page development. Please contact Robert Hettinga, <mailto: rah@philodox.com>, or <mailto: rah@shipwright.com>, if you're interested in in-kind or direct sponsorship of the Symposium. The Digital Bearer Settlement Email List: dbs@philodox.com As part of Philodox's ongoing support of the technology of digital bearer settlement, an email list has been established to discuss the technology and it's ramifications in an unmoderated, informal setting. Please see <http://www.philodox.com/> to see the archives of the Digital Bearer Settlement discussion list, and its subscription information. If there is enough demand, an additional announcement list for the Symposium itself will be created, but it is hoped that the Symposium's participants will use dbs@philodox.com as a "watering hole" for their discussions. Who is Philodox? Philodox is a new financial technology evangelism company founded by Robert Hettinga, founder of the Digital Commerce Society of Boston, and founding moderator and editor of several internet discussion lists and newsletters on digital commerce and financial cryptography. Mr Hettinga is also the founder of both the International Conference on Financial Cryptography, and the International Financial Cryptography Association. For more information on Philodox, please see <http://www.philodox.com>. For more information on Robert Hettinga, please see <http://www.shipwright.com>. For more information on the Digital Commerce Society see <mailto: majordomo@ai.mit.edu?body=info%20dcsb>. For more information on the International Conference on Financial Cryptography, see <http://www.fc98.ai/>. See You in Boston! Cordially, Robert Hettinga Founder, Philodox Financial Technology Evangelism Boston, Massachusetts -----BEGIN PGP SIGNATURE----- Version: PGP for Personal Privacy 5.0 Charset: noconv iQEVAwUBNVnPvMUCGwxmWcHhAQGEDwf6AzFX53KDFRwNieTsU7M19nLf7F88BNWM bu+ii9aJsrAFlvkllyFuruVMjEWiYpNTfj5xPEJaaIxeHFRR6vNJet7XekAMjg1O ZeYzs86I9DovtSIpSuSt3uHcPuwPgE9ZvO0parHwUl64uZ1cTldExYPCaquqU1K0 YzOVI+01MNKs/T5Zo68nRhkm1DfzYCE3DjKs4YA2mgA8nmgpqjhbnncOYATgv3Up H+RRLLVSHD3nKh2RdK49RtGpRg6YvDRI3FP0vPaPTAMNy6A0KREhcnixZp8CZhBC X510YO4ctlUkcS6esfSL9NyDZNlvLPZ4DdFveFgCurqvrUF5dyHMvQ== =6min -----END PGP SIGNATURE----- ----------------- Robert Hettinga (rah@shipwright.com), Philodox e$, 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire' The e$ Home Page: http://www.shipwright.com/ --- end forwarded text ----------------- Robert Hettinga (rah@shipwright.com), Philodox e$, 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire' The e$ Home Page: http://www.shipwright.com/