Prosper.com's standing orders
adelevet
prosper.com (now called portfolio plans,
http://www.prosper.com/help/topics/lender-portfolio_plans.aspx).
As a lender it lets you specify minimum criteria for what you consider
acceptable loans, and then goes on to automatically bid on every loan
request that meets these criteria.
On the surface it would seem that there is no fundamental difference
to how ripple works, since a borrower will be able to to exploit
existing, distributed networks to finance a certain project.
Interpersonal trust in ripple is simply more formalized -- less
interpersonal -- at prosper, as it is achieved through a form of
credit rating and debt to income ratio as well as interest.
Is ripple therefore best thought of as (a tool for) social innovation?
Or, in other words, is ripple's reliance on interpersonal trust and
friendship connections its major, maybe even exclusive defining
characteristic?
Thomas Hartman
It seems to me that the difference between making a loan via ripple
and via prosper is that with ripple, you are essentially your own
credit rating agency. Your judgement of credit worthiness is based,
probably, on knowing the person you're lending to, or otherwise doing
some due diligence such as a traditional credit check. Via prosper,
you're outsourcing the check on credit worthiness completely to
prosper; there's no way for "personal intuition" to play a role. With
ripple, you can use personal intuition, and optionally augment this by
doing a real credit check.
I have read that prosper.com's default rate is around 20%, which seems
pretty high to me.
Maybe personal intuition can do better than experian?
Sorry if this is answering a question you didn't ask.
Thomas.
Alexis Delevett
coming from...
So far I identified ripple with its distributed
technology (automagically sourcing network connections
to find pathways for the desired credit). And although
it was clear to me that it represented "merely" a
translation of existing technologies into a new domain
(and thus wasn't fundamentally new), I wasn't aware
that this (technological, p2p) model was already being
applied in the same domain by others (e.g. prosper,
where the standing orders are exploited to satisfy a
given credit request).
It seems to fair to say, then, that the emphasis on
interpersonal trust is the one central characteristic
of ripple -- a characteristic that does make it
fundamentally new and different. While this is
absolutely inspiring, it also puts it in the realm of
utopia for me (not even so much in the sense of being
unrealistic, but more in terms of being challenging,
really, such as the quest for the hook (= how to get
people to start practicing)).
--- Thomas Hartman <thomash...@googlemail.com>
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Ryan Fugger
routing. Existing payment networks do not do this as far as I've been
able to tell.
Prosper and similar services are not payment systems, but lending
systems, and so are not really comparable to Ripple. The difference
is that payment systems are for moving value given a payer and a
recipient. Lending systems determine who will pay and who will
receive funds at various times, but don't create new ways of
transferring value once payer and recipient have been determined.
Ripplepay does involve interpersonal credit in building a network to
route payments through, but any kind of credit would work. My bias
towards interpersonal credit comes from thinking that direct human
relationships are easier to create and have greater value than other
relationships, but that's just my opinion. Interpersonal credit is in
no way a defining characteristic of Ripple.
(I realize that the heading "Ripple" on the Ripplepay site causes
people to think that Ripplepay *is* Ripple. I really ought to clarify
that better.)
Ryan
Thomas Hartman
> people to think that Ripplepay *is* Ripple. I really ought to clarify
> that better.)
Personally, I think of the (in development) p2p payment program as
being called "rippled".
This is by analogy with httpd, sshd, etc.
rippled is a back-end server program, which is used (or will be used,
once it gets done) by front end clients such as ripplepay.com and
others, when others are developed.
Just like gmail.com is a front end to some smtp server being run
internally by google.
Maybe the name rippled will stick?
Thomas.