Lesson 7: assurance contracts

This idea was inspired by this: https://en.bitcoin.it/wiki/Contracts#Example_3:_Assurance_contract

An assurance contract is a way of funding the creation of a public good, that is, a good that, once created, anyone can benefit from for free. The standard example is a lighthouse: whilst everyone may agree that one should be built, it’s too expensive for an individual sailor to justify building one, given that it will also benefit all his competitors.

One solution is for everyone to pledge money towards the creation of the public good, such that the pledges are only committed if the total value of all pledges is above the cost of creation. If not enough people contribute, nobody has to pay anything.

So, using the tipbot system, it is possible to promote  an assurance contract in favor of a user:

#MediterraneanCoin assurancecontract @smallplatf 1000 MED 2014-06-30

This means that, in favor of user smallplatf, it is started an assurance contract funding, which will last until the expiration date (2014-06-30).

Users all over the internets can contribute to this funding using the "assurancetip" command. If the target amount is reached before the expiration date, than the target user will receive the amount. Otherwise, if by the expiration date the target amount for funding is not reached, the target user will receive nothing and the contributed amounts (using "assurancetip") will be given back to all contributing users.