A Critique of the Digital Monetary Trust

Going through some older files, I came across a paper of mine called A Critique of the Digital Monetary Trust:

Abstract: The DMT is a currently operating digital bank with anonymous accounts. While it has many nice features, it suffers from a number of drawbacks, mainly having to do with its design as a single, closed, centralized system. We examine the possibilities this design allows for a malicious bank to take advantage of its users. While the DMT claims that this is acceptable because it is unavoidable in banking, we show that this is false, by outlining schemes involving independent parallel or distributed systems. These solutions require less trust than the DMT, often without being any more mathematically complex.

I encountered the DMT as part of Dodge City, the online community site of Laissez-Faire City, a libertarian nation project from the early 90's that morphed into a freedom in cyberspace venture. For my general criticism and this paper, I was kicked off the Dodge City site by the operator. Not long after, the entire project fell apart due to the personality of this individual. (It should be noted that the DMT is an entirely separate venture, run by J. Orlin Grabbe.)

The DMT is an inherently paradoxical system, in that it is an attempt to create freedom and anonymity via a single monolithic entity. In the paper, I outline its weaknesses, and suggest radically distributed, decentralized alternatives. Those interested in the future of cryptoanarchic banking may find these suggestions interesting.

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v. nice

v. nice

since you wrote that

since you wrote that article, has there been any improvements to the basic system or have others taken it and made it better with another sevice?

Not sure, I haven't followed

Not sure, I haven't followed it closely. I doubt it has improved, they weren't very receptive to feedback. There aren't any systems that are reliable and anonymous. Most "big ventures" (e-gold, PayPal) shy away from anonymity.

certainly one of the best

certainly one of the best reasons for owning .9999 bullion far away!:grin: