Transaction Banking

http://www.bloomberg.com/news/articles/2016-05-22/fraud-in-4-trillion-trade-finance-turns-banks-to-digital-ledger

Transaction Banking description.

http://www.efinancialnews.com/story/2016-05-12/transaction-banking-a-steady-performer-on-wall-street

Transaction Banking gets its own distinct name because it appears that the only difference between using cash or a credit card to buy something is the magnitude of the purchase price.  This problem domain which is more accurately called "Big Buck Buys" has a vehicle that plays in the transaction that also has its own distinct name:  Invoice that has associated contractual information such as products or services and agreed up prices and terms.  The kind of things that in a purchase at a check out counter don't come into play until after the fact in the form of a receipt.

The idea is to apply blockchain to the Invoice system.  Good idea since the invoice is a  kind of quasi payment thing.   A contract that has a follow on trade transaction settlement in actual payment of funds.  If there are two invoices for the same transaction (doubling the purchase price payment) then there is a problem.  Not exactly like counterfeiting which produces a new illegal copy of money but more like a cloning of an existing document in the trading process and presenting it as a false basis for payment.

In my monetary system proposal currency as well as accounts are block chained.  It is logical to extend the excellent proof of blockchain on an open ledger to Invoices in Transaction banking.  Since that category is by definition it would obviously have priority for blockchain technology application.  Similar to stock trading.  Probably end of the day clearing functions between banks as well.

In this view of blockchain application to monetary transactions the adoption of blockchain becomes a top down progression of application starting with the Big Buck stuff first.  A shift from the bottom up progression of application to the common day to day use of money in small amounts as a medium of exchange.

If the real impetus push to blockchain currency transactions is at the Big Buck level then it will be more or less in the background but so much more important to watch than digital "Small Change" applications of digital currency on block chain.

Look at the common data elements related to an Invoice as described by Wikipedia:

• The word invoice (or Tax Invoice);
• A unique reference number (in case of correspondence about the invoice);
• Date of the invoice;
• Credit terms;^[3]
• Tax payments, if relevant (e.g., GST or VAT);
• Name and contact details of the seller;
• Tax or company registration details of seller, if relevant [e.g. Australia Business Number (ABN) for Australian businesses];
• Name and contact details of the buyer;
• Date that the goods or service was sent or delivered;
• Purchase order number (or similar tracking numbers requested by the buyer to be mentioned on the invoice);
• Description of the product(s);
• Unit price(s) of the product(s), if relevant;
• Total amount charged (optionally with breakdown of taxes, if relevant);
• Payment terms (including method of payment, date of payment, and details about charges for late payment);

Looks like the receipt that I received at the supermarket.  Actually, the receipt is more like an invoice if I pay using a credit card rather than the confirmation of immediate cash currency.  Since "Cash" is an ambiguous colloquial term rather than the "Real Thing" described by Wikipedia and I am not sure of what term to use for Real Money like a paper dollar bill that is the official cash of the USA with a serial number and denomination amount on it I will call it "hard cash money".

Invoice data elements are appropriate for Big Buck transactions but since they are common for small amount transactions as well providing business information associated with the transaction there seems to be an opportunity to lock the data elements to the basic Money related data elements such as date and amount and include it all in the Total Monetary System blockchain structure rather than stripping out and separating related data to separate data bases that are used for other purposes such as inventory control....... Put it all on the blockchain.  A single master blockchain.  It is all digital so what is the incremental cost of doing it?  How much difference is there for the computer program or application then between a one dollar transaction and a million dollar transaction?

In the big picture the thing called "Loan" and debt contract are not much different than Invoice.  It is a transaction in which Money itself is transacted in a trade of two different things, or maybe States of Money.

Money today traded for Money tomorrow (plus interest).

So many descriptors that imply differentiation of a thing were necessary in the past that are no longer needed in the digital domain of Information Engineering Technology.  Most often this is the case because so many things are now managed digitally independent of their past physical association that no longer really applies except in our conceptual delay in weaning ourselves form a continuing perception of a thing related to its past tightly bound physical nature.

There are many conceptual things still described by their old time words associated with their physical bindings.  These old terms should die an natural death like "dialing" someone described calling them on the "telephone" using the dial with holes in it related to numbers.