Exchange

In our industrial economy, we specialize in what we produce. It would be very difficult for us to barter what we produce (our offer) for what we want, because the people producing what we want do not want what we are offering. This difficulty of matching offers and wants is known as the double co-incidence of wants problem. The invention of money provided a solution to the problem. A buyer can receive what they want from a seller by entering into a contract that takes them into debt, so creating money. They can close the contract and so redeem the debt by exchanging what they have to offer for money (a currency). Money functions as a means of exchange, a unit of account and a store of value.

A chiralkine exchange enables people to clear their offers and wants in a marketplace without using any form of currency. Transfers of ownership are linked together without anyone going into debt. The exchange does not use any imaginary store of value.

Like in a monetary system, exchange is controlled by contracts entered into between buyers and sellers, but these contracts impose mirror opposite obligations on both sides, such that the transfer of ownership of something from a seller to a buyer is coupled both to the transfer of ownership of the seller’s want from a third party to the seller and to the transfer of the buyer’s offer to a third party in satisfaction of the third party’s want.

The ownership relationships between two people and a subject are coded in four symbols representing me, you, mine and yours and their four complements representing not me, not you, not mine and not yours.  These can be considered as forming the eight corners of a cube consisting of two interpenetrating chiral tetrahedrons.

Mine and yours are coded from each person’s perspective.

For example, we can code the ownership of a good, such as bread, from both of our perspectives. The diagram below represents bread that is mine, not yours.

When the ownership of a subject is transferred from one person to another all of the symbols are flipped.  For example, when the ownership of bread is transferred from me to you, the symbols are flipped as shown below.

It is as if the seller and the buyer have exchanged the signs of the green +0s and -0s.

In the transfer of a subject from a seller to a buyer, the seller and buyer enter into a contract as they do when debt and money are created. However, instead of the ownership being transferred in one step with the creation of debt and money, both the seller and the buyer are placed under mirror opposite obligations. Until the contract is closed, the subject belongs neither to the seller nor to the buyer. It can conveniently be locked away, for example in an electronic locker under control of the system. The lock is opened with a key provided to the rightful owner at the completion or cancellation of the contract. The key can be, for example, a bar code provided by the system to the smart phone of the rightful owner who then presents the code to a scanner associated with the locker.

Prior to the opening of a contract, the seller and the buyer have units of opposite kind to the value of the subject that are represented as green.

The opening of the contract is coded through the creation of sellers and buyer’s units. Each of the seller and the buyer owes units of the opposite kind to the one created. We represent these units to the seller and buyer as yellow.

A person holding units that are yellow owns units that are of the opposite kind to those owed.

During performance of the contract, the seller uses the seller’s units to buy a subject from a third party having buyer’s units by exchanging the seller’s units for that subject and buyer’s units. A buyer uses the buyer’s units to sell a subject by exchanging them with the subject being sold for seller’s units. The seller’s units are thus used to buy things with and the buyers units are being used to sell things with. We represent the exchanged units to the seller and buyer as blue.

A person holding units that are blue owns units that are of the same kind as those owed.

When both the seller and the buyer have blue units (own the same kind of units as they owe), they have fulfilled their respective obligations under the contract. They can now close their contract and the buyer becomes the owner of the subject. We represent the redeemed units to the seller and buyer as green. The seller and buyer have in effect exchanged the signs of their green units.

   

The exchange of goods and services is controlled through coupled state changes mediated through polarity flips. The diagram illustrates this for the transfer of ownership of bread from me to you coupled with the transfer of peas from a third party to me and a transfer of oranges from you to another third party.

Prototype code has been written. The dashboard for a user looks like this:

The code may be inspected by going to http://chiral.gets.cc/login.aspx. Log in as “clienta” using password tusq500. Full interactive demonstrations are available on request.

In the exchange, all steps are under quaternion control. At no stage does any person exchange a good or service for an imaginary store of value (money or credit).

The system should integrate very well with electronic locks for securing goods undergoing transfer of ownership, for example on a drone or spacecraft transporting the good, and mobile phones used to instruct state changes and receive electronic keys (e.g. a bar code) for opening locks on completion of ownership transfer.