

Stellar and the $10 Trillion Economy - quintendf
https://medium.com/@quintendf/stellar-trust-at-the-edge-of-the-network-96b8ce293c33

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kordless
> Once a week, the two partners “settle up” off network

I believe the network allows the propagation of credits through other
gateways. That means the debt should be able to be settled via Bitcoin, Yap
stone or other methods without doing an off chain transfer. Those real-world
transfers could also be troublesome in many circumstances if they were over a
certain amount of value.

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quintendf
(OP here)

Agreed that there are lots of well designed on-network mechanisms for this as
well. My point was that early Stellar uses cases will probably involve
blending on-network/off-network transactions, especially in communities not
(yet) comfortable with relying on bitcoin.

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kordless
Assuming two people get together to make this happen is reasonable. It's also
reasonable that two other people will get together and do US<\-->BTC and
another two peple will do BTC<\-->BRL. That gives you the 'path' to make the
remittances automatic. My point was there really doesn't need to be a cross
border transfer at all - simply wait until someone builds another gateway to
return the debt.

For people sending money home to Brazil, well, they don't have to know
anything about Bitcoin to make this work. The network just takes care of it.

I love the postage stamp analogy! Great post man.

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quintendf
Yeah! I'm really curious how long it will take for those "closed loops" to
develop. I think cryptocurrency co's should be working as hard as possible to
find them and get them online.

Thanks re: postage stamp :)

