On philosophical studies of central banking it is understood that central banks function as clearing houses for private banks. It is not so obvious to come to the conclusion that it is the non zero cost of transport (or settlement etc.) that creates value for a clearance house to exist.
Here we can understand what seems to be centralized to actually be comparable to a randomly distributed set of nodes (as if the central bank were ‘cyberspace’).
And thus we have shown the value of reducing the cost of base layer settlement or rather rendered it applicable to Szabo’s formalization of Smith:
