What if every click I did on the Internet only cost a small part of the penny? What if your favorite news site, your broadcast service, or even your daily email use can be paid for small increases, instead of one large piece at the end of the month? This vision – where almost every digital reaction can be liquefied through “precise books” – hovering on the Internet economy since its early days. But as the Nick Zabo card in 1999, Micropayments and mental transactions costsHe pointed out that there are more than just a technique that stands on the way.
Twenty-five years later, Szabo’s warnings about the costs of mental transactions-cognitive expenses of determining whether something worth paying its price. Although developments such as “smart agents” based on artificial intelligence and bitcoin solutions such as Lightning Network Promays without friction, Szabo notes are still necessary to understand why this idea does not fly completely, and whether that may change recently.
Below, we will check:
• The basic arguments from the Szabo 1999 paper
• Why did the fine books remain on the sidelines of decades?
How is the lightning network trying to artificial intelligence and bitcoin?
• Whether the costs of mental transactions can be reduced, in the end, enough to make fine books prevailing
The paper that identified the dilemma
in Micropayments and mental transactions costsNick Szabou has determined the fact that technology is often ignored: while mathematical costs (such as payment of payments, prevent fraud, or verification of encryption authentic Small remains high stubborn.
“The cost of the customer’s mental transactions will soon dominate the costs of technological transactions for the treatment system used in the treatment (if you do not actually), and the efforts of the minute technology that stresses technological savings on cognitive savings will become unrelated.”
– Nick szabo, Micropayments and mental transactions costs (1999)
The basic Szabo argument is that for most consumers, there is a “troubled worker” even in the smallest payment decisions. You ask yourself, “Is this article worth 2 cents? 5 cents? 10?” Instead, consumers are attracted towards flat fees and packed everything you can eat, even if it ends at a slightly more cost in the long run. Mental relief in knowing that you will not be contradictory with each click is simply more valuable than the few stoves.
Sources of these cognitive costs?
3 points listed in the paper, but it can be more.
1. Unconfirmed cash flows
Consumers rarely have an ideal insight into the amount of what they will get or spend at any specific time. Flat or assembly reduces planning and balanced pressure of these doubts.
2. Product quality assessment
In many online purchases – especially digital commodities – you cannot know the real “quality” of what you buy until you use it. Whether it is an article, game, or movie, the mental effort needed to report, “Is this worth x? “Every time you click it can be more expensive than the same minute.
3. The complexity of decision -making
Our brains are good in making quick calls when the risks are high or small options, however awesome When we have countless small decisions.
Why did Micropayments stop – despite the new technology
1. The noise “Payment of the Internet”
In the late nineties and early first decade of the twentieth century, the Internet was welcomed as new boundaries for small wandering. Systems such as Netbill, Mllencent and Payword promised flows without friction with small sums. Dream? All artists, newspapers and web owners will be paid directly for each page or each minute of the consumed content.
But even with treatment and fraud costs it has become more manageable, the user’s dependence has never reached the critical mass. The argument of the cost of mental transactions for Szabo explains this to a large extent: Consumers found that it is easier to deal with one monthly subscription to deal with countless pennies that fly from their digital portfolios.
2. The rise of the “free” services funded by the ads
Search engines, social media and news sites were gradually adopted Free for the consumer, ads supported model. Why? It is easy for the consumer’s mind-not to register or carefully manufacture each page download. Meanwhile, the site owner raises your attention through ads.
Even the distinctive content is attracted towards low -statistical walls and subscription models. Once the frequent mental load is replaced, small payments were replaced with one monthly shipment, customers complained less and pushed more stable.
3. “Smart Factors” and AI: Early promises, slow results
Szabo also expected solutions such as “smart factors” that, in theory, can deal with many small decisions on behalf of the consumer. The idea was that artificial intelligence can absorb your preferences (“I love reading about financing, but only from sources with a good reputation, and I am ready to pay up to 10 cents.
After building a truly dedicated agent no Continuous training and control requires – not to mention the conflict of potential interests alone – very difficult. To accurately manage artificial intelligence, you must realize your implicit preferences and be reliable to act in your interest.
Did anything change in 25 years?
Although Szabo visions are still valid, the scene in 2024 (and beyond) differs in several important ways:
1. User facades improved
From the portfolio of the intuitive mobile devices to Chatbots, the design of the user interface is the league tournaments before it is in 1999. Some friction was removed: you can click on payment or use login to the password or integrate with wearable devices. but Public cognitive expendituresDo not disappear if the purchase is worthy of attention – it has not disappeared. Even one tap is too much if you have to do it hundreds of times a day.
2. Blockchain and encrypted currencies
The Lightning Network aims to repair payments by enabling the transactions close to the fixed with very low fees. It does not solve the basic platform of the paper, which assumes that the costs of technical transactions are zero. But Lightning is the best current online protocol for open and inter -operating money online.
3. Amnesty International enters chat
Tools such as ChatGPT, advanced advanced recommendations and agent frameworks have been able to allocate deeper experiences for each user. In theory, an artificial intelligence assistant can learn your tastes or budgets so well that you are rarely annoyed by accurate approval claims, or you can fully automate it in a specific budget. However, building that confidence in the artificial intelligence agent is still an obstacle. The question transmits from “Is this worth it?” To “What does artificial intelligence do?”
Looking forward: Are we ready for the accurate renaissance era?
In order for a collective dependence, people need to avoid a feeling of nickel and mixing at each turn. Even if the technical fees are near zero, the cost of mental treatment can make the fine books feel learning. Making microscopic books as invisible as possible, while tracking the value that is exchanged, is crucial.
It is likely that obtaining Micropayments properly requires rethinking business models, and there are exciting examples where micro -defenses appear as a viable strategy:
• Payment call for all doors
In the world of artificial intelligence – the demonstrations that are already flourish (called credits or symbols). Since companies are strictly evaluating use on the return on investment and commercial needs, they are less deterrent due to mental friction that keeps consumers in a critical position. They are used as they need in an actual time.
• Tips and donations
Small and voluntary payments for creators or open projects can work specifically because they do not lead to the same feeling of commitment. Users donate a gratitude or spirit of society, making fine books appear to be a gesture more than a forced charge. Stacker News and Nostr pushed this model forward to take advantage of the lighting network.
Smart design for smooth experiences
Regardless of the business model, the user experience design is the key to making MicroPayments practical. The simpler, the more “the payments” will be “invisible”. Some ideas include:
• Automated rules and AI: Allow users to set extensive preferences (“There is no objection to spending up to $ 2 a day on distinguished articles”) and relying on a smart agent to deal with decisions in the background.
• Collected invoices: collecting multiple small shipments in one easy -to -understand statement, which reduces the mental losses of each individual treatment. Ideally, this will be a standard and normal product, rather than detailing it in one or vertical place.
• Intuitive reactions: submit clear claims so far – such as the monthly spending tape – helps users track costs without overwhelming them.
Not only overcomes the cognitive barriers set by Nick Sazabo, the bars of faster and cheaper transactions, but also the studied design that meets real human psychology. When these elements-AII-based automation, the models based on use that do not feel ambiguous, and the user interface that does not converge-can see the real renaissance payments.
Conclusion: Szabo visions are still controlling
Nick Sazabo’s paper in 1999 proved significantly and hit it after all these years. Although technology has advanced-advanced internet speeds, Blockchain-based payment bars and advanced AI-remaining central problem:
People do not want to think about small payments all the time.
it’s not only About software or encryption; It relates to psychology how to appreciate attention, comfort and certainty. Microbial defenses can only succeed if these mental costs can be reduced or “compiled”. Artificial intelligence agents and the Bitcoin Lightning network are new pieces of the mystery, but their success depends on providing a user experience that hides or leads to completely automated accurate decisions.
Will the next 25 years finally bring an era in which fats flourish? Perhaps – if we discover how to make a small portion of Pence Unwashed A monthly subscription. Until then, we may realize that precise books become simply Another one arrow in the heels From the payment forms, you coexist with advertising offers, which are based on subscription, and explicit “free”.
But at the present time, Sazabou’s warning stands: a world Still It collides with human psychology. The costs of our mental transactions are real, and if the future solutions – whether it is Amnesty International, Lightning, or anything else – do not address our deeper preference for simplicity, the precise defenses will remain an interesting idea never to become virtual.
References and more reading
• Szabo, N. (1999)Micropayments and mental transactions costs“
• Fishburn, P., Odlyzko, AM, and SIDERS, RC (1997)Fixed fees for pricing the unit to obtain information commodities“
• Nelsen, c. (1998)The issue of small books“
• Rivest, RL and Shamir, A. (1996)Payword and Micromint – Simple MicroPayment Plans“
This is a guest post by Jacob Brown. The opinions that are expressed are completely property and do not necessarily reflect the views of BTC Inc or Magazine Bitcoin.
The post Szabo’s Micropayments and Mental Transaction Costs: 25 Years Later first appeared on Investorempires.com.