Summary:

A very innovative new micropayment system analysed by Red Herring. “Ronald Rivest, cofounder of RSA Security, a security software company, h…

A very innovative new micropayment system analysed by Red Herring. “Ronald Rivest, cofounder of RSA Security, a security software company, has proposed a novel solution called Peppercoin, a name derived from English law, which states that one Peppercoin is the smallest payment allowed in a contract. This micropayment mechanism uses cryptography and aggregates multiple micropayments. A micropayment merchant will likely get hundreds of thousands of these tiny transactions, but Peppercoin will randomly drop 99 percent of them. The other 1 percent will be sent to the bank for 100 times the payment. Seems simple, but the trick is to make the system untrickable.”

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