Loom Gold: Beyond Digital Currency
When most Internet users think of digital currency they are picturing a Bank of America ‘online banking’ account or a PayPal account. Both of these prehistoric versions of electronic money helped to revolutionize the way our world handles e-commerce.
However, if you are ‘old school’ or just an ‘old fart’ like I am, digital currency memories bring up thoughts of that original Webmoney Keeper software from years ago still installed on my laptop or learning how to access my first Pecunix account. I was using e-gold digital gold currency almost a decade ago when the account numbers were still under 250,000 and of course they are now over 4 million. That won’t mean much to those of you who pay your electric bill via Bank of America online, but to those who remember placing that x.com referral link on your web way back when…..a low e-gold account number still holds a bit of nostalgia.
Unlike ‘Online Banking‘ or ‘Online Payment Systems’ digital currencies operate outside of conventional banking operations. Digital currency is not a part of the federally regulated banking alliance in the US or pretty much any other country. Instead, digital currency provides global commerce solutions to people who may not even have a bank account or live in a country yet conquered by PayPal. This new and innovative payment method provides a great addition to regular banking channels. This is especially true with Webmoney which has become very incorporated into daily life around Russia and other parts of the world. You don’t have to go online with the bank to pay your bills, Webmoney lets you do it without a bank.
Digital Currency is sometimes called ‘free market’ money. This ‘money’ is available if you want to use it, but its not government issued and you are not required do business using it.
The primary market of exchange and liquidity for the digital currency units is created and maintained by third party independent exchanges. These independent agents are a huge part of this private enterprise or a free market. Additionally, they are not a part of or regulated by any banking authority. Anyone can create some digital currency as long as they find someone else who will accept and use it in exchange for value.
Trying to use privately issued digital currency, is a bit like visiting America with a pocket full Pesos or Euros. Your local bank won’t accept them and only a few stores or restaurants in the US will either. If you want to spend them, you must privately find someone who will accept Pesos. If you want to exchange your Pesos or Euros into US Dollars you must find a third party independent exchange agent.
Many times I’m asked, “What is Digital Currency?”
I think, ‘digital currencies‘ and can be defined by their common traits such as the ability to be purchased from a third party agent outside of any conventional banking system and also be exchanged unit for unit with another digital currency. You can’t do that with BoA, PayPal or Moneybookers and any P2P transfer from that Bank of America account (wire) would run through the Fed Wire system. That bank wire transfer is a highly regulated government controlled system and not a private independent third party private agent. The other identifying feature that singles out all digital currency systems is their finality of payment. No chargebacks! Digital currency payments are 100% final and not reversible. Try that one on for size with a PayPal account.
Today I’d like to introduce a monster new entry into the digital currency arena. Its name is Loom Gold (www.loom.cc) This one is not quite an online payment system and I don’t even consider it to be a regular digital currency as I have described above….Loom is beyond all those ‘minor’ systems.
This system is pristine and uncharted territory for Internet users. Its so simple my 8 year old nephew with a crayon in his hand can understand and use it. (and he rides the short bus to school) You don’t need a bank account, credit card, ID, credit rating or even an email address to transfer value around the globe…….quite simply its awesome. More to come each day this week on Loom Gold including a brief interview with the developer, quick instructions, listings of third party agents who can help you get started, integration info and a short video tutorial. Stay tuned.
paypal e-gold webmoney egold credit cards digital currency
Hi Mark,
I’ve visited the Loom Gold website and I was totally confused about the system.
For any newcomer, it would appear that there is no “transparency”. I can’t even find an “about us” page or who is behind Loom Gold.
Due to the recent attack on E-Gold, dgc-users are cautious in dealing with an unknown digitial currency especially if it is un-clear as to how to convert fiat to Loom Gold and back to fiat currency again.
I can’t even find an “exchange rate” (US dollars to Gold oz. etc) on the site.
Where is the gold stored?
Where are their servers?
How much value/gold are in circulation?
Who are the auditors?
Who is the owner?
Are they reacheable by the DOJ?
Where are they incorporated?
These are just a couple of questions that any would-be user would ask. If the answers are hidden somewhere on the website, maybe a “sitemap” would help too.
Regards,
Steve
Steve,
Good questions, this is a 5 part series so they should all be answered this week or so…
You have to remember, creative intelligent programmer/software architect types are NOT marketing / advertising people.
All will be revealed within a week, I’ll try to answer some questions here:
(Q)..or any newcomer, it would appear that there is no “transparency”.
(a) not yet
I can’t even find an “about us” page or who is behind Loom Gold.
(a) that is a good suggestion, right now this is a project that has been circulating within the DGC community for some time now and we all know how he is and he is very trusted and a genius at what he does.
(Q) Due to the recent attack on E-Gold, dgc-users are cautious in dealing with an unknown digitial currency
(a) Yes, and we all should rightfully so be cautious. Like I said, does not really fall directly into the ‘Digital Currency’ category like you may have known in the past. You are going to have to forget about past companies, accounts and focus on each transaction. (that description may help) Please remember, this is not some Venture capital project where a good business plan gets 24 million to roll out, this is a knowledgeable person creating a new system, so there is not going to be fancy graphics and live help yet. As usual I’m bringing you stuff before anyone else mainstream in the ‘media’ does. Jim over at Vertoro has some good info posted already and is also an exchanger. I think that is the ONLY other place on the Net to find it except what I’m bringing to you this next week.
(Q) ..especially if it is un-clear as to how to convert fiat to Loom Gold and back to fiat currency again.
(a) Again, if you can wait for the next day you’ll get a small list of proven exchange agents to assist you with buys or sells. Its a very exciting project and several quality agents have signed on, and not just today, they have been on board -some for a year or more I believe.
(Q) I can’t even find an “exchange rate” (US dollars to Gold oz. etc) on the site.
(a) Again, you have to begin to understand the concept of how this works, please stay tuned and read on…its not exactly like your regular e-currency.
(Q) Are the reacheable by the DOJ?
(a) Everyone is ‘reachable’ by the DOJ :-)
Mark
Loom is a general purpose content management system, somewhat like a Wiki, except it is *not* open to the public.
It was developed specifically to provide rich, dynamic content to a variety of users with different permissions and privileges.
Its design was inspired by the needs we faced in our accounting business, where we publish a plethora of dynamic and sensitive financial data and reports to users.
The design is founded on accounting and economics. It is not a “public utility.” If you are looking for a public utility which anyone can use, there are many clean restrooms along public highways available.
Mark,
Thank you for the fast responses to the questions. I am excited about this new project/platform that would be a welcome tool for e-commerce.
Looking forward to the upcoming inputs regarding Loom Gold.
Steve
http://www.thecyberspaceatm.com/
This is a working example of a Loom. It shows what you can do with the program.
Mark