RESPECT CREDITS – Brokering $$$ Exchange on the Respect Network
Session Topic: Respect Network Credits
Convener: Kevin Cox, Drummond Reed
Notes-taker(s): Kevin Cox, Drummond Reed
Kevin Cox Notes:
Respect Network Members enable individuals to interact with businesses, government and other members. The Network Members each have overlapping sets of interactions but many interactions - particularly with businesses and governments - will initially be with one Respect Member. Where ever appropriate Respect Network Members can reduce the burden on end users by using the existing relationship with a member to communicate with them rather than creating a new link. This is particularly important when funds are involved because the transfer of funds can lead to unnecessary costs if the funds are transferred for each transaction. Respect Network members can transfer funds to and from each other using Respect Network Credits.
This not only reduces costs but it increases the potential market for each of the Respect Network Members and for each individual attached to the Network. The attached diagram shows the overall structure of the Credit system.
Some members of the RespectNetwork Credit system might allow the individuals whose data is shared to keep some of the Credits for their own use. Some paying organizations might even insist on it as it could be used as a promotional tool. This is very important for those RespectNetwork Credit members who sell directly to individuals as it creates a special rewards currency that has multiple uses and hence is more attractive to consumers than typical rewards currencies while at the same time increasing the network effect for the Respect Network.
Specifying and implementing the details of how this will be done will be the work of this group. One suggestion is that funds in payment between parties in the Network be transferred via Zero Interest RespectNetwork Credits. There will be a transaction charge on the gross transfer of funds to cover the cost of construction and to help build other infrastructure of benefit to all RespectNetwork members but there be no interest on credits accumulated in the system. Instead of paying banks a commission on the transfer of funds a reduced amount could be given to the network and returned to benefit the members and unnecessary offsetting transfers of money between members could be eliminated.
Drummond Reed Notes:
Kevin drew a diagram that explain the ecosystem of personal cloud service providers (CSPs) who would be in the business of helping individuals to exchange personal identity and attribute exchange credentials.
The overall goal is to create a federated system of exchanging digital credits between CSPs which can work across national or industry boundaries and help achieve the network effect for credential exchange. Each CSP can deal with the business customers in its own jurisdiction/country/market and yet still service relationships that need to cross jurisdictions/countries/markets.
One attendee asked about taxes and how these exchanges would be treated by governmental authorities. Kevin explained that the credits should not be taxed because no money is changing hands across jurisdictions, only within a jurisdiction.
As a Respect Network member, Kevin proposed that Respect Network create this system of credits. Drummond agreed that this was precisely one of the goals for which Respect Network was created, and that he was eager to see how this work could be driven forward by the Respect Network members who want to make it happen.
At least one attendee, Ross Hughson from MyInfoSafe and Personal Information Management LTD in New Zealand, said they were interested in working on it because they see the benefit of expanding their market.