Spotify-like Subscription Model Proposed For Collateral Payments

Summary (IA Generated)

A new blockchain protocol funded by Web 3.

The latest paper to come out from this project, “Promise: Leveraging Future Gains for Collateral Reduction”, proposes a new protocol .

Alice & Bob engage in ongoing relationshipThe easiest way to explain how Promise works is through an example.

Let’s say, Alice engages Bob as a service provider for a series of tasks, and that this relationship is ongoing, where Bob periodically provides a service to Alice and every time, she pays him 1 Ether.

Typically, Bob would have to lock up a collateral of 1.

With Promise, Alice, instead of sending Ether directly to Bob, would lock it up with Promise.

Bob would receive periodic payments through Promise upon delivering proof of the delivered service.

Because the future payments act as additional leverage, Bob may be allowed to post a smaller amount of collateral.

In his view, Promise does for the transactions involving collateral, what Spotify did for the music industry:.

And instead of you paying a monthly subscription, you would pay for each song individually.

Since Promise has no benefit for a one-off relationship, Dr.