Stellar and the $10 Trillion Economy

medium.com

13 points·quintendf··4 comments

> Once a week, the two partners “settle up” off network

I believe the network allows the propagation of credits through other gateways. That means the debt should be able to be settled via Bitcoin, Yap stone or other methods without doing an off chain transfer. Those real-world transfers could also be troublesome in many circumstances if they were over a certain amount of value.

(OP here)

Agreed that there are lots of well designed on-network mechanisms for this as well. My point was that early Stellar uses cases will probably involve blending on-network/off-network transactions, especially in communities not (yet) comfortable with relying on bitcoin.

Assuming two people get together to make this happen is reasonable. It's also reasonable that two other people will get together and do US<-->BTC and another two peple will do BTC<-->BRL. That gives you the 'path' to make the remittances automatic. My point was there really doesn't need to be a cross border transfer at all - simply wait until someone builds another gateway to return the debt.

For people sending money home to Brazil, well, they don't have to know anything about Bitcoin to make this work. The network just takes care of it.

I love the postage stamp analogy! Great post man.

Yeah! I'm really curious how long it will take for those "closed loops" to develop. I think cryptocurrency co's should be working as hard as possible to find them and get them online.

Thanks re: postage stamp :)

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