[dynm]

Everything you say makes sense. But can you help me understand why this doesn't also apply to the LLM service I use today? Doesn't that service, in effect, makes a "micropayment" to the LLM providers every time I make a query? Is the key difference that there are only a small-ish number of LLM providers? (Not doubting, just interested!)

[salawat]

As mentioned above, it's not a micropayment. It's just a payment. You can transact in whatever amounts you want, and backend systems will bump the numbers around just fine, even for fractions of a cent. Hell, that's how interest and currency exchange settle out. The LLM provider runs a meter. The meter tallies your activity, wraps it in a transaction, hands it to the backend, backend talks to other banks/payment gateways, an ACH happens, done. That isn't a "micropayment". That's just a payment. In fact, if you pay attention, some of the biggest winners in tech, namely cloud providers or AI providers, are as darling as they are because they figured out how to turn everyday compute tasks into billable transactions. We're exceptionally good at tracking the build up of value, even if your atomic unit of transaction is a thousandth of a cent, but x however many million customers you have, it quickly adds up.

Micropayments have always, as long as I've been in the industry, implied a level of disintermediation on the behalf of sender/receiver. The chance to have that kind of utility died September 11th, 2001, when the U.S. and western world suddenly got the bright idea that the only way to protect themselves from terrorists was to modify the system to be able to surveil everybody l, all at once. Bringing us to a codger explaining why P2P micropayments are pretty much a pipedream in the finance world as she is legally practiced.

[dynm]

Not too interested in debating the semantics of "micropayment", but it sounds like if we swap in "news sites" in place of "LLM providers" everything should still still be possible? Consumers could pay tiny amounts of money for individual articles?