To: TCMAY@GOT.NET, CYPHERPUNKS@toad.com Subject: Re: A problem with anonymity From: monty.harder@famend.com (MONTY HARDER)

But if the escrow agent is anonymous, we simply recurse, moving now to the question of whether anyone can trust the Anonymous Escrow Agency not to take the money and run.

TC> (I mention banks because, when you look at it closely, today's banks can TC> quite easily claim that a customer made a withdrawal when he didn't. That TC> they don't says more about the nature of persistent businesses than about TC> any government oversight or security features. This is a side point, but it TC> bears keeping in mind that the real world of banks and businesses, etc., is TC> not fully secure, either. And yet it mostly works pretty well. The reasons TC> for this are interesting to consider.)

A bank has $$ invested in impressive-looking buildings, (so that vanishing into the ether and setting up shop elsewhere is rather difficult) and several officers whose TrueNames are registered with the appropriate agencies, so that they may be sued if they pull this crap.

While individual stockholders might appreciate the anonymity (and protection from legal action) of owning stock in a bank or escrow agency (might just combine the functions, while we're at it), they demand onymity of the officers with whom they entrust the keys to the corporation. Monster@FAmend.Com *

The real secret is that for most banks the individual transaction is << than the total stream of transactions. Defaulting on a single transaction will show a profit that is miniscule compared to the over-all earnings at stake if the bank's credibility is jeopardized. When banks have gotten into trouble it is frequently when they allow one customer or one transaction to represent a significant share of their business. You have a high probability of being able to trust an escrowee with your $1 if you know he intends to collect commissions on holding $1million for others based on his "trusted" representation. Buford C. Terrell 1303 San Jacinto Street Professor of Law Houston, TX 77002 South Texas College of Law voice (713)646-1857 terrell@sam.neosoft.com fax (713)646-1766