Web Currencies: Social Currencies for You and Your Friends

How could a (social) currency system look like that can be used between friends and family?

It is part of the bigger question: How is value created within social networks and how can we measure it.

Arne, one of our German readers directed us to Ripplepay:

"Ripplepay.com is a payment system where you can be your own banker. Connect to your friends, family, and associates and your credit with them becomes a fully-functional currency."

The principle of the Ripple project is well described in the following concept paper ("Money as IOUs in Social Trust Networks & A Proposal for a Decentralized Currency Network Protocol").

In the social context, people speak less about money and currency, and rather more about (social) favours.  “Go talk to my buddy there, he anyways owes me a favour”.

“Social Currency Systems” operating within a group of friends need to transfer these principles of bilateral favours and the exchange of services (“large and small favours”) into quantifiable units. That’s basically what Ripplepay does.

It remains to be seen if Ripple (see Wikipedia article) in its current form will be applicable in practice. But the effort itself is already notable.

Recommended reading is the book The Future of Money, by Bernard Lietaer.

Originally posted in German by Jochen Krisch, translated by Jason Soo.