[ISN] Final Call: Symposium on Digital Bearer Transaction Settlement

From: mea culpa (jerichot_private)
Date: Wed Jul 01 1998 - 00:00:47 PDT

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    Announcement Date: June 29, 1998
    
    
    F I N A L  C A L L  F O R  P A R T I C I P A N T S
    
    
    The Philodox Symposium on Digital Bearer Transaction Settlement
    
    The world's very first meeting on digital bearer transactions
    
    
    The Downtown Harvard Club
    Boston, Massachusetts
    July 23-24, 1998
    
    To Register: <http://www.philodox.com/symposiuminfo.html>
    
    Registration Deadline: July 9th, 1998
    
    
    THE DEADLINE IS APPROACHING
    
    Philodox Financial Technology Evangelism, of Boston, Massachusetts, in
    association with the Digital Commerce Society of Boston, announces the
    first in a series of symposia, conferences and workshops on the
    subject of digital bearer transaction settlement.
    
    The first of these gatherings, a professional symposium examining the
    technology, economics, markets and law of digital bearer settlement,
    will be held at the Downtown Harvard Club of Boston, Thursday and
    Friday, July 23 and 24, 1998.
    
    This is the Final Call for Participants for the Symposium. In order to
    guarantee their seats, participants in the Symposium must register at
    <http://www.philodox.com/symposiuminfo.html>, and deliver payment to
    Philodox as specified in the "Registration and Payment" section below,
    on or before 12:00 Noon, EST, Thursday July 9th, 1998.
    
    Registrations received after that time will receive admission to the
    Symposium on a space available basis, and, because room size will be
    chosen based on registration at the time of the deadline, space will
    be severely limited. Furthermore, the size of the symposium itself has
    an absolute maximum size of only 60 persons, regardless of the space
    we secure for it. In other words, if you have any intention of
    attending at all, please register before the deadline, and, the sooner
    you register, the more assured you will be of getting a Symposium
    seat.
    
    
    WHAT IS DIGITAL BEARER SETTLEMENT?
    
    A digital bearer transaction is one where a cryptographically secure
    value-object, issued and underwritten by a third party, is exchanged
    between the two parties in a trade, typically over a public
    internetwork. The object executes, clears, and settles the transaction
    instantaneously, securely, and, in the most secure protocols,
    anonymously.
    
    Moreover, these financial cryptographic protocols promise to reduce
    the cost of transactions by several orders of magnitude -- that is,
    possibly a thousand times cheaper -- than equivalent "book-entry"
    transactions, such as credit and debit cards, checks, and modern
    securities clearing methods.
    
    Since it is possible to issue any security -- cash, micropayments,
    debt, equity, or any derivative thereof -- in digital bearer form, it
    is probable that digital bearer settlement will become the dominant
    form of transaction settlement in the information age.
    
    In fact, as transaction settlement latency tends towards the
    instantaneous, the more cost, security, and non-repudiation advantages
    there are for digital bearer settlement protocols. So-called "Real
    Time Gross Settlement", will be, for all practical intents and
    purposes, digital bearer transaction settlement.
    
    
    THE MARKET FOR DIGITAL BEARER SETTLEMENT
    
    It is estimated that $200 billion in transactions are being executed
    on the internet annually.  40% of all retail stock trades are now
    executed from the net, for instance. If it's possible to properly call
    a credit card transaction transmitted under Secure Socket Layer to be
    settled and cleared on the net itself, then an absolute maximum of 10%
    of those transactions, or $20 billion annualized, are cleared and
    settled on the net today, with marginal market share to other
    transaction protocols. By comparison, $3 trillion in foreign exchange
    transactions are executed, cleared and settled every day, using
    standard book-entry processes.
    
    
    Given their cost advantage, flexibility, and scaleability, it is
    completely conceivable that digital bearer transactions, of all kinds
    and sizes, from macrobonds to micropayments, will be executed,
    cleared, and settled on ubiquitous global internetworks, they will
    become the dominant transaction mechanism over time on those networks,
    and, by extension, in the global economy in general.
    
    It may happen sooner than we can imagine. Electronic batch-processed
    book-entry settlement itself was only possible 40 years ago, and it
    wasn't until 1983 that era of the physical settlement of paper bearer
    certificates in the capital markets was officially over, when the US
    Congress made interest on bearer bonds not tax-deductible, effectively
    outlawing them.
    
    However, as Milton Freidman said at roughly the same time, "Regulation
    usually benefits the regulated". Operations departments in securities
    firms were only too happy to see the end of physical settlement
    because book-entry settlement was so much cheaper. If that weren't the
    case, there  would still be people clipping coupons every quarter, and
    sending their bonds and multithousand-dollar cash bills around in
    Brinks trucks to various Wall Street "cages" for settlement. And, of
    course, the reason we have book-entry market regulation -- and
    taxation -- is because the book-entries are there to begin with.
    
    In the same sense, internet financial cryptography and digital bearer
    settlement are much more a phenomenon of collapsing microprocessor
    prices than electronic batch-processed book-entry settlement ever was.
    In fact, it will probably be necessary for digital bearer settlement
    to exist for any serious economic activity (that $20 billion a year
    for internet credit cards versus $3 trillion a day for foriegn
    exchange, for example) to happen on the internet. The very ubiquity of
    the future internet will demand it, and when the time comes, the law
    will change to reflect the new economic reality of digital bearer
    settlement, just like it did for book-entry settlement.
    
    
    THE SYMPOSIUM
    
    Towards that end, Philodox has taken it upon itself to focus the
    attention of the information technology, financial and legal
    communities onto the technology of digital bearer settlement though a
    series of events, starting with this initial Symposium of
    professionals interested in digital bearer settlement, to be held in
    Boston in July.
    
    Each section of the Symposium agenda will consist of a short
    presentation on the topic, followed by discussions led by an expert
    moderator. While several experts in the field of digital bearer
    settlement will be on hand to lend their help where needed, it is
    expected that participants will bring their own particular knowlege to
    bear on specific elements of the symposium program, and, of course,
    not everyone will have something to say on every topic.
    
    Rest assured there will be plenty to talk about, however. This
    symposium will be focusing on several thorny economic, marketing,
    legal and policy problems of digital bearer settlement, and there are
    lots of differing opinions on how to solve those problems, so expect
    to participate in some animated discussion.
    
    
    THE SYMPOSIUM AGENDA
    
    AGENDA
    
    THE PHILODOX SYMPOSIUM ON DIGITAL BEARER TRANSACTION SETTLEMENT
    The Downtown Harvard Club
    One Federal Street, Boston
    July 23-24, 1998
    
    
    THURSDAY, JULY 23, 1998
    (Club Dress Code: jacket and tie, please, no jeans or athletic shoes)
    
    0730-0830:  Check-in, Breakfast
    
    0830-0845:  Welcome
    
    0845-1015:  HISTORY OF BEARER TRANSACTION SETTLEMENT
                Moderator: Robert Hettinga
    
    1015-1030:  Break
    
    1030-1200:  DIGITAL BEARER SETTLEMENT TECHNOLOGY SURVEY AND FORECASTS
                Moderator: Ryan Lackey
    
    1200-1300:  Lunch
    
    1300-1500:  BEARER SETTLEMENT LEGAL/REGULATORY SURVEY AND FORECASTS
                Moderator: John Muller
    
    1500-1515:  Break
    
    1515-1715:  POSSIBLE LEGAL/REGULATORY SOLUTIONS
                Moderator: John Muller
    
    1730-1930:  Reception, Cocktails and Hors d'Oeurves
    
    
    Friday, July 23, 1998
    (Dress Code: "business casual", no jeans or athletic shoes)
    
    0800-0830:  Breakfast
    
    0830-0845:  Announcements
    
    0845-1015:  INTERNET TRANSACTION SETTLEMENT ECONOMIC/FINANCIAL SURVEY
                 AND FORECASTS
                Moderator: TBA
    
    1015-1030:  Break
    
    1030-1200:  CAPITAL MARKET APPLICATIONS FOR DIGITAL BEARER SETTLEMENT
                Moderator: Robert Hettinga
    
    1200-1300:  Lunch
    
    1300-1430:  OTHER MARKET APPLICATIONS FOR DIGITAL BEARER SETTLEMENT
                Moderator: Robert Hettinga
    
    1430-1445:  Break
    
    1445-1630:  NEW PRODUCT/MARKET IDEAS FOR DIGITAL BEARER SETTLEMENT
                Moderator: TBA
    
    1630-1645:  Closing
    
    
    SYMPOSIUM COST AND REGISTRATION
    
    The cost for the Philodox Symposium on Digital Bearer Transaction
    Settlement is $447, payable to "Philodox", on a company check or
    personal money order sent to Robert Hettinga, Philodox Financial
    Technology Evangelism, 44 Farquhar Street, Boston, MA, 02131, USA.
    Philodox must have delivery of your payment on or before noon, Eastern
    Standard Time, July 9, 1998. Massachusetts residents should add 5%
    sales tax. If possible, please include the recipient's email address
    on the check, to aid in confirmation.
    
    In addition, participants must also register for the Symposium at the
    Symposium's registration page,
    <http://www.philodox.com/symposiuminfo.html>.
    
    Include on the form provided there the participant(s) name, email
    address, company affliation and shirt size, in addition to what
    expertise and interests you bring to the symposium, to help us with
    content and discussion development. Confirmation of your Symposium
    seat will be sent by email upon receipt of your check. If you intend
    to pay your Symposium admission by wire, please indicate so the
    checkbox provided on the form, and wire instructions will be sent to
    you by email. If, for some reason, you plan to come but cannot arrange
    payment in time for the deadline, please register anyway, and contact
    Mr. Hettinga directly at <mailto: raht_private> to see if
    something can be worked out.
    
    Your Symposium fee goes towards conference room rental, breakfasts,
    lunches, a cocktail reception on Thursday night, snacks, audio-visual
    rental, internet access on-site, various mementoes of the occasion
    including an embroidered "polo"-style shirt. And, of course,
    Philodox's event management fee.
    
    SCHOLARSHIPS
    
    A small number of scholarship fee-waivers will be available,
    contingent upon direct sponsorship and the size of the Symposium, to
    be selected by Philodox and based upon the applicant's financial need
    and ability to contribute to the symposium. Please contact Robert
    Hettinga, <mailto: raht_private>, if you want to request a
    fee-waiver.
    
    
    SPONSORSHIP
    
    In addition to direct event and website sponsorship opportunities,
    including the possiblity of exhibition space, there are several
    in-kind sponsorship opportunites available, particularly in the areas
    of audio-video services and internet services, including internet
    access, web-casting and web-page development. Please contact Robert
    Hettinga,<mailto: raht_private> if you're interested in in-kind or
    direct sponsorship of the Symposium.
    
    
    THE DIGITAL BEARER SETTLEMENT EMAIL LIST: DBSt_private
    
    As part of Philodox's ongoing support of the technology of digital
    bearer settlement, an email list has been established to discuss the
    technology and it's ramifications in an unmoderated, informal setting.
    Please see <http://www.philodox.com/dbs-archive/> to see the initial
    archives of the Digital Bearer Settlement discussion list, and, use
    the following URL in any mailto capable browser to subscribe to the
    list itself: <mailto:requestst_private?subject=subscribe%20dbs>.
    
    It is hoped that the Symposium's participants will use
    dbst_private as a "watering hole" list for their discussions
    before, during, and after the Symposium.
    
    
    WHO IS PHILODOX?
    
    Philodox is a new financial technology evangelism company founded by
    Robert Hettinga, founder of the Digital Commerce Society of Boston,
    and founding moderator and editor of several internet discussion lists
    and newsletters on digital commerce and financial cryptography. Mr
    Hettinga is also founder of both the International Conference on
    Financial Cryptography, and the International Financial Cryptography
    Association.
    
    For more information on Philodox, please see
    <http://www.philodox.com>.
    
    
    See you soon in Boston!
    
    Cordially,
    Robert Hettinga
    
    Founder,
    Philodox Financial Technology Evangelism
    Boston, Massachusetts
    
    The Philodox Symposium on Digital Bearer Transaction Settlement is
    sponsored in part by the Internet Guide Service Inc., <mailto:
    esjt_private>, and their generous contribution of
    conference internet access services.
    
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