10.14.2017

IOU Transfer Protocol Program

**Now known as IRHN, see ir.hn for more info**

IOUTP Program

1. GIVER: take inputs for prompt and password.  Save prompt and password. RECEIVER:  Take inputs for prompt and password. Save prompt and password.  Must match what the giver sets.  

2. GIVER: Echo prompt to all connected people.

3.  MIDDLEMAN: If a prompt comes to me echo the prompt to all others connected to me except the one who gave it to me.

4.  MIDDLEMAN: Remember which person gave me the prompt.

5. RECEIVER: If the prompt that comes to me matches the prompt I set, then issue the set prompt and password to the person who prompted me.

6.  MIDDLEMAN: If a prompt and password comes to me from a person I prompted earlier, then send that prompt and password to the person who initially prompted me.

7.  GIVER: If a prompt and password comes back to me for which I initiated the prompt; check if the password is correct.

8.  GIVER: If the password is correct then send an IOU, prompt, and password to the person who returned the prompt and password to me.  Delete prompt and password from memory.  Clear all memory except <<save issued IOU code into database>> as an active IOU but not who it was issued to.

9.  MIDDLEMAN: If an IOU comes to me for a given prompt and password; <<save IOU code>> and <<save who sent IOU>> then submit an IOU, prompt, and password to the person who sent the prompt and password to me.  <<save issued IOU code in database>> After this; delete prompt and password from memory.  Delete who gave me prompts and passwords.  Ie: clear all memory.

10.  RECEIVER: If an IOU comes to me and I originated the password then <<save the IOU code>>.  Clear all memory except <<save who issued me the IOU.>>

11.  If transaction doesn't complete then the receiver tells the giver to cancel the iou's.  The giver will tell the first middleman that the "IOU the giver issued is now cancelled for <<prompt>> and <<password>>.  You are advised to cancel the IOU that you advanced".  This middleman then sends this to the next person.  If one of the people cancels the IOU and doesn't tell the next person, the IOU accounting will be different and the person will no longer trust the person who cancelled the issued IOU without notice.  

No one will know exactly who was the weak link and the reason the transaction failed.  However if you notice that one of your friends has a higher rate of failed transactions than others then you will eventually unfriend them.  Also there is nothing to gain by being the weak link because the IOU given to you will be cancelled anyway.

12.  Next the GIVER starts the echo process again to find another route to the receiver, this time omitting the friend through whom the transaction failed last time.  Repeat all the rest of the steps.

13.  You will need to keep track of an IOU tally between you and all your friends.  You should check your tally against your friends periodically to ensure that the accounting is the same.

14. As long as you buy the same amount as you sell you will have to exchange no money.  If you buy more than you sell or sell more than you buy, then you will have to end up settling your debt with your friends at some point.  You will pick friends based on what forms of payment they will accept for settling debts.

15.  Also you need to set what you pay out for an iou.  An iou should be roughly the value of a half dime in 1792 (currently about $1.25).  So say I will redeem any IOU I issue at $1.25 or I will give 0.0002 bitcoins or I will give 1 luumn or I will give a 1lb loaf of bread.  Then when the person who collects IOU's from me wants to cash out, they can select how much of each thing I offer they want to collect from me.

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