OPEN-TRANSACTIONS-TO-BANK PROTOCOL (OT with Bitmessage.)

Open-Transactions and Bitmessage combination to produce:

PROTOCOL FOR TRANSFERS BETWEEN OT SERVER AND SEPA (REAL WORLD BANK)

An easy way for OT wallets, behind the scenes, to negotiate OT-to-Real-Bank transfers (and vice-versa.)

Let's say Alice wants to send OT-based Silver Grams to Bob's Euro account at his bank.
Let's say Jorg is willing to accept Silver Grams in return for SEPA transfers.

1. Alice forms this string:  "Silver_Asset_ID+Server_A_ID+EURO_SEPA"
2. Alice uses the above string to generate a Bitmessage broadcast key (Bitmessage calls this a "pseudo-mailing-list.")
3. Jorg, wishing to earn some money, is already listening to all broadcasts for that key.
4. Alice broadcasts a message to that key: "I want to transfer 100 grams, at the price of 1 gram, to be received by a Euro SEPA account as X Euros. My Bitmessage ID is ALICE."
5. Jorg receives the message, and agrees with the price. He sends a message via Bitmessage to ALICE, saying, "I am willing to make the transfer. My NymID on Server A is JORG. My silver account on server A is JORG_Silver_A and my SEPA ID is JORG_SEPA."
6. Alice initiates a SEPA via Escrow (a smart contract we will make), from her account on Server A, to Jorg's account on the same OT server, in the amount of 101 silver grams. This smart contract then sets a timer for 1 to 5 minutes.
7. Alice sends a Bitmessage (or OT message, either will work at this point) to Jorg containing the transaction number of her running smart contract on Server A, along with the SEPA Account ID for Bob: BOB_SEPA.
8. Jorg sends a SEPA transfer from his Euro account, JORG_SEPA, to Bob's Euro account: BOB_SEPA.
9. Alice's Escrow awakens in 1-5 minutes, and starts periodically checking (via SEPA calls) to see if BOB_SEPA has received the Euros. If so, she automatically releases the Escrow to Jorg's silver account on OT.
10. Also, if Alice does nothing to announce the SEPA transfer success, the Escrow will automatically release to Jorg after a timeout period.
11. If Alice disputes (claiming the SEPA transfer was never received by Bob) then the escrow splits the silver grams between Alice and Jorg.

At this point, Alice and Jorg have to have access to some reputation system, and each will have their own acceptable level of risk based on the smart contract itself (which logic ultimately determines whether a dispute defaults to Alice, or Bob, or splits the money between them.)

Alice and Jorg can also take advantage of cash streaming protocols (multiple transfers beneath the risk limit) in order to transfer larger amounts than the risk limit.