8 ms·

> The EEA describes itself as a standards group designed to help enterprises build their own interoperable technology, mostly using private versions of the ethe

by Torai 9y ago

> The EEA describes itself as a standards group designed to help enterprises build their own interoperable technology, mostly using private versions of the ethereum blockchain. Ether price soaring right now, but isn't Master Card's bussiness direct competition of the public Ethereum blockchain as a payment system?

52-6F-62 9y ago
They were reportedly doing research about two months ago into using Ripple as a cross border payment solution.[0] Circle is using Ethereum presently for cross-border payments. It might be that they're investigating Ethereum for a similar purpose. [0] edited for link: http://www.amis.org.mx/amis/img/convenciones/2017/PDF/Plenarias/dia2/1_Antonio_Alejo_KPMG.pdf http://www.amis.org.mx/amis/img/convenciones/2017/PDF/Plenar...
wuliwong 9y ago
I have always thought that but it just crossed my mind that credit cards are basically just terrible loans. You could still give out loans in cryptocurrencies. Maybe Master Card could just switch if a particular crypto currency gained wide adoption. They could start issuing new cards with some sort of technology that allowed for cryptocurrency transactions at businesses. Or maybe they can use existing card tech, I really don't know anything about that.
- SomeStupidPoint 9y ago
  What makes them terrible loans? Also, much of the benefit of credit cards is from the fraud protection and mediation that companies provide -- it's not so much that they're loaning me $X00, but that they're covering the transaction details against fraudulent use and provide a dispute mechanism if don't feel the merchant has lived up to their offer post payment. I find it much more likely that MC is trying to be the MC of cryptocurrencies -- eg, by packaging up a USB dongle that automates transactions using "secure" means, which they then insure against abuse. From that perspective, ETH makes a reasonable platform.
  - skellera 9y ago
    I think he just meant because it's a 20%+ loan typically. But really a person shouldn't be holding a balance on a credit card.
- jerguismi 9y ago
  Credit card loads are the best to me as a consumer, since there is 0% interest for 1,5 month on average.
- JackFr 9y ago
  So maybe I don't understand this, but one of the purported advantages of cryptocurrencies is that the supply cannot be expanded by loose credit. Thus it is seemingly impossible (to me at least) for a bank to for a bank to extend credit.
  - nopzor 9y ago
    Even if the supply of the currency can't be expanded, can't credit still be issued from the supply of currency that the lender has?
JustAnotherPat 9y ago
Not really. Ethereum payments sell on being trustless, which means you have to upfront the money. Mastercard deals in credit. You'll never get the benefits of a credit based system in ethereum. This is why all ethereum dapps stink so far too. People are used to exchanging trust for goods and perks.
- tehlike 9y ago
  mastercard deals in credit? banks deals in credit, mastercard is a payment network.
  - campbelltown 9y ago
    This is true. But mastercard facilitates the liquidation of this credit via their payment systems, which people will continue to use. Initially people will likely use ether as a store of value/hedge against the traditional economy. Also dapp fuel, as we all hope. Furthermore, take a look at coinbase as an example of a company profiting heavily on this new payment system. Mastercard has an opportunity to capture some of the new value being created in the ecosystem. They don't have to fall off the map if we all start using ether. If they do, they failed to innovate. I suspect their execs understand this.
    - dmcy22 9y ago
      Coinbase makes a percentage on each purchase/sale of a cryptocurrency, much like how a bank makes money when we buy forex. As far as I know, they don't take a fee for transfers of cryptocurrencies, which is more along the lines of what Mastercard does.
jethro_tell 9y ago
I don't understand why the coin would increase in value, it's the tech that they are looking at, to use among themselves on private block chains.
- DennisP 9y ago
  For now, because the public chain doesn't have the privacy and scalability they need. They expect that to change, and which point they plan to migrate some applications to the public chain. In the meantime they're being careful to stay compatible, and contributing development resources. Also JP Morgan has a client that bridges public and private chains. Source: I watched the EEA conference, and some smaller presentations later.
  - jethro_tell 9y ago
    Interesting, are they funded in anyway by eth coin?
    - DennisP 9y ago
      As far as I know the big corporations haven't invested in ETH. There are also some ICO-funded startups involved. I don't think the Ethereum Foundation is funding any private chain efforts, though they are collaborating with the EEA.
- joshschreuder 9y ago
  Them using the tech privately is seen as an indication of support (or at least interest) in the platform. So the public coin benefits from exposure and validation of its tech.
heliumcraft 9y ago
Ethereum is a platform and is not meant to be a payment system per se. One can however build a payment system (and other things) on top of the platform.

by Torai 9y ago

52-6F-62 9y ago

They were reportedly doing research about two months ago into using Ripple as a cross border payment solution.[0] Circle is using Ethereum presently for cross-border payments. It might be that they're investigating Ethereum for a similar purpose. [0] edited for link: http://www.amis.org.mx/amis/img/convenciones/2017/PDF/Plenarias/dia2/1_Antonio_Alejo_KPMG.pdf http://www.amis.org.mx/amis/img/convenciones/2017/PDF/Plenar...

wuliwong 9y ago

I have always thought that but it just crossed my mind that credit cards are basically just terrible loans. You could still give out loans in cryptocurrencies. Maybe Master Card could just switch if a particular crypto currency gained wide adoption. They could start issuing new cards with some sort of technology that allowed for cryptocurrency transactions at businesses. Or maybe they can use existing card tech, I really don't know anything about that.

SomeStupidPoint 9y ago
What makes them terrible loans? Also, much of the benefit of credit cards is from the fraud protection and mediation that companies provide -- it's not so much that they're loaning me $X00, but that they're covering the transaction details against fraudulent use and provide a dispute mechanism if don't feel the merchant has lived up to their offer post payment. I find it much more likely that MC is trying to be the MC of cryptocurrencies -- eg, by packaging up a USB dongle that automates transactions using "secure" means, which they then insure against abuse. From that perspective, ETH makes a reasonable platform.
- skellera 9y ago
  I think he just meant because it's a 20%+ loan typically. But really a person shouldn't be holding a balance on a credit card.
jerguismi 9y ago
Credit card loads are the best to me as a consumer, since there is 0% interest for 1,5 month on average.
JackFr 9y ago
So maybe I don't understand this, but one of the purported advantages of cryptocurrencies is that the supply cannot be expanded by loose credit. Thus it is seemingly impossible (to me at least) for a bank to for a bank to extend credit.
- nopzor 9y ago
  Even if the supply of the currency can't be expanded, can't credit still be issued from the supply of currency that the lender has?

JustAnotherPat 9y ago

Not really. Ethereum payments sell on being trustless, which means you have to upfront the money. Mastercard deals in credit. You'll never get the benefits of a credit based system in ethereum. This is why all ethereum dapps stink so far too. People are used to exchanging trust for goods and perks.

tehlike 9y ago
mastercard deals in credit? banks deals in credit, mastercard is a payment network.
- campbelltown 9y ago
  This is true. But mastercard facilitates the liquidation of this credit via their payment systems, which people will continue to use. Initially people will likely use ether as a store of value/hedge against the traditional economy. Also dapp fuel, as we all hope. Furthermore, take a look at coinbase as an example of a company profiting heavily on this new payment system. Mastercard has an opportunity to capture some of the new value being created in the ecosystem. They don't have to fall off the map if we all start using ether. If they do, they failed to innovate. I suspect their execs understand this.
  - dmcy22 9y ago
    Coinbase makes a percentage on each purchase/sale of a cryptocurrency, much like how a bank makes money when we buy forex. As far as I know, they don't take a fee for transfers of cryptocurrencies, which is more along the lines of what Mastercard does.

jethro_tell 9y ago

I don't understand why the coin would increase in value, it's the tech that they are looking at, to use among themselves on private block chains.

DennisP 9y ago
For now, because the public chain doesn't have the privacy and scalability they need. They expect that to change, and which point they plan to migrate some applications to the public chain. In the meantime they're being careful to stay compatible, and contributing development resources. Also JP Morgan has a client that bridges public and private chains. Source: I watched the EEA conference, and some smaller presentations later.
- jethro_tell 9y ago
  Interesting, are they funded in anyway by eth coin?
  - DennisP 9y ago
    As far as I know the big corporations haven't invested in ETH. There are also some ICO-funded startups involved. I don't think the Ethereum Foundation is funding any private chain efforts, though they are collaborating with the EEA.
joshschreuder 9y ago
Them using the tech privately is seen as an indication of support (or at least interest) in the platform. So the public coin benefits from exposure and validation of its tech.

heliumcraft 9y ago

Ethereum is a platform and is not meant to be a payment system per se. One can however build a payment system (and other things) on top of the platform.