Father of Modern Cryptography, Ron Rivest, Launches Micropayment Company


This just in via a PR source: Ron Rivest, an MIT professor and the Âï”R” in RSA Security, has started a new company called Peppercoin. His co-founder in this new venture is Silvio Micali. Rivest and Silvio Micali are the co-founders of the Cryptography and Information Security Group at the Massachusetts Institute of Technology’s Laboratory for Computer Science. Peppercoin is launching a new micropayment system that will enable music companies, and other online content providers, to sell content profitably for as little as a single penny per transaction. According to the press release, “The Peppercoin Payment System will enable companies, for the first time, to complement subscription payment models with profitable “pay per use” ones. For example, music sites will be able to sell single tracks for less than $1, to complement their traditional CD and monthly subscription businesses. Newspapers, magazines and other publishers will be able to add “newsstand” pricing for single-issue access. And gaming sites will be able to add pay-per-play pricing to their subscription models.”

If this works it could have a great impact on the P2P business, as most people, nearly 75 percent would prefer to buy downloads legally than share music files over illegal music networks. I have always maintained a stance which says most of the people are honest and decent people and not criminals as RIAA and MPAA try to make us to be. The inefficienct models that record companies and movie studios are forcing down our throats along with the stupid-politico tricks are the real problem.

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