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In Cryptonomicon all the banks issue paper IOUs for Silver they claim to have. In order to keep each other honest that they really have the silver, just before closing time time Friday the banks would all run and demand exchange on every piece of their competitors paper they could get their hands on.

I'm looking at you ecash mints.

Enki 5mo ago

Thats the Suffolk system right?

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Enki 5mo ago

That was part of the "free banking" system that the national banking act of 1860 nuked.

Bill Cypher 5mo ago

Uh, what? This is from a fiction book. It is sounding like there is a gap in my history knowledge that needs to be filled.

Enki 5mo ago

I mean, I've read the book, so I know what you're talking about, but this is an actual banking system that e-chash mints might be able to use.

The only flaw with the banking system as applied to e-cash ments would be that the Suffolk Bank was a central clearing house for smaller banks. And they had regular redemption demands to this centralized bank.

Bill Cypher 5mo ago

Ah, a top down proof of reserves system instead of a bottom up system where once a week we all pick a mint and clean them out to force a show of reserves.

This week fuck minibits, next week coinos, and so on.

Enki 5mo ago

Yeah exactly. Obviously, I prefer the bottom up approach.