– Each peer has a PKE pair. This acts as their ID.
– When someone downloads bytes from a peer, then they ‘owe’ that peer download bytes in return e.g. if you download 1GB of data from me, then in the future I have the right to download 1GB of data from you.
– Peers grant credit limits. The limit is flexible. Strangers would have a small credit limit (possibly zero), friends of friend have a higher limit and so on.
– In order to download 1GB from a peer, you first give them a digitally signed promise to allow them to download 1GB sometime in the future (a digitally signed IOU).
– Credit/IOUs can be traded. Credit transfer transactions are done through the peer that granted the credit. e.g. Imagine 3 peers – John, Bob, and Fred. John owes Bob 1TB. Bob wants to download some stuff from Fred. He’s says to Fred (I’ll give you John’s IOU of 1TB if you give me an IOU of 1TB so I can download stuff from you). Fred agrees. They then contact John to make sure he is aware of this transfer. Bob can no longer try to ‘cash’ in the credit because John knows that credit was transferred.
Over time there would likely be large nodes with large number of connections. These would essentially become ‘banks’. Banks would likely enable convenience by evaluating risks and granted credit to strangers, perhaps required a ‘guarantor’. And so on …. P2P finance is born! Credit is money …