Imagine that the process of creating a currency brand is analogous to establishing a blog or web page. In addition, issuing currency units or a budget is similar to putting content on the web page, and that using the currency or budget is similar to having that content read by someone else.
What if there is a requirement to have someone else approve your content before you could put it on your web page? This requirement presents a burden to the author’s provision of content, and is analogous to having an unnecessary approval process for issuing one’s own currency brand. The proper approach that we see on the web is to let anyone write what he or she wants, and others do not have to read or visit that web page. Similarly, let anyone issue their own currency – if you don’t believe in what that currency brand represents, don’t accept it.
Additionally, the pre-approval requirement presents an unnecessary burden to the content reviewer as well. Let us say that I agreed to be the reviewer. Instead of worrying about the quality of my own content, I also have to worry about reviewing and approving someone else’s content. This concern is analogous to: Instead of worrying about my own budget, I also have to decide what someone else’s budget should be as it relates to me. Let each currency issuer worry about setting its own limits and others could decide on the acceptability of a currency brand later if it gets offered as payment.
What if there is a requirement that registration with a certain web page is necessary before you could read its contents? While this requirement is understandable in a social network context where privacy is an important issue, it does not make sense in requiring co-membership if the purpose of publishing a web page is to share information.
Such a mentality of restricted usability also does not make sense when it comes to currency and budgets, which should be used based on perceived needs and not on having preconceived agreements to share and use a particular currency with others. This flexibility and openness is an important aspect of entities that cater their products and services based on goals to serve the general public or market. For consumers, currency that is limited to a particular community leads to limited market access. For providers, limiting service to pre-specified beneficiaries implies a conscious decision to limit potential sources of revenue.
The mentality that is advocated in satconomy is to minimize the barrier for an entity to independently issue its own currency brand. Issuing currency should be as simple as issuing unused expense and revenue budgets. A fledgling entity should not have to determine beforehand who is going to accept or reject its currency brand, but should work steadfastly to establish a good brand reputation and increase its likelihood of being accepted by other entities. If an entity’s currency brand is found acceptable as payment, its unused expense budget and the unused revenue budget of the other entity is reduced by the same amount.
Some of the implementation concerns involve the technology for providing reliable and auditable information related to currency brands. There should be accounting conventions when currency is issued as budgets – this concern is addressed by the ocaup accounting model. Payments should be facilitated between accounting systems of different entities – this concern is addressed through the evolving protocol that is now tentatively called Inter-entity Payment Protocol (IPP). Finally, just as a search engine helps a reader decide which web resource to visit, a currency brand index should also be available to help entities decide whether to accept or reject another entity’s currency brand. The hope is that, just as there has been an explosion in the number of web resources due to the ease in which web pages, blogs and profiles are set up, there would also be a surge in the number of independent currency brands that are established using easy to use accounting software, uniform payment protocols and effective currency brand indexes.