Time Banking: Bringing Back Barter

In a recent post, we talked about the nature of social capital. Here, we discuss a related concept. Time banking is a great way to build your social capital as well as do something you feel good about.

In 1980, a man named Dr. Edgar S. Cahn suffered a massive heart attack. He was 46. Recuperating in the hospital and “feeling useless,” he dreamed up Time Dollars as a new currency to provide a solution to massive cuts in government spending on social welfare. The concept of Time Dollars recreates humanity's first system of commerce. Before there was a gold standard or fiat money, there was barter. In its original form, it was trade in the most literal sense of the word. Person A would give person B one cow in exchange for, say, ten bags of grain. There was no currency and no inflation, and the exchange rates were determined through haggling. Time Banks, which trade in Time Dollars, put a modern spin on the same concept.

The basic concept is that all hours are created equal. A hair stylist's hour of work is equal to a babysitter's, and both of those are equal to an hour spent helping someone with their garden. In a specialized society like ours, each person trades primarily in one skill. Suppose the auto mechanic wants to go to a two-hour concert. Using a time bank, he can "debit" his account two Time Dollars for the tickets, as long as someone who can get him the tickets also participates. At a later date, he can perform two hours' worth of mechanical work for another participant of his time bank, at which point he will have paid his debt.

Most time banks are local organizations. They are found all over the world with several websites dedicated to directing users to time banks in their area. Timebanks.org, a sort of directory, advises that the optimal size for any one bank is under 150. Since every time bank relies on mutual trust, keeping the numbers small keeps things personal without a whole lot of unscreened strangers. It also makes it easier to track everyone's time dollar accounts.

What kind of experiences do people have with time banking? Loretta B., a guest writer at my favorite personal finance blog, Get Rich Slowly, writes:

"When my Dad died, my yoga teacher from the timebank came and stayed at the house during the funeral. She removed all the medical equipment, restoring the house to normal. Others served food and cleared up at the luncheon after my Dad’s funeral. I cannot tell you the relief I felt having people I could trust take care of that for me, and financially, I would not have been able to afford the luncheon any other way."

Time banking is an exciting concept for many reasons. When Dr. Cahn concieved the idea, he imagined it being used for social welfare programs, a sort of volunteer effort with rewards. That potential is just now being recognized. Since this is a "pay it forward" system, it's more than just another charity effort. People who use a service from a time bank are called upon to offer their own services to others. This creates a ripple effect and keeps the system from being a handout.

TerraNet: Peer-to-Peer Cellular

TerraNet, a Swedish company, has announced that the first implementation of their revolutionary phone network will take place in South America later this year, with plans for a commercial debut in the works for 2009. The concept behind the network relies on using the handsets themselves to create a free wireless network. These would be augmented by low-cost substations. In its proposed form, the setup is purely peer-to-peer and eliminates all of the expensive overhead involved in setting up regular cell phone service.


The service is accomplished by using handsets adapted to work as peers. When a TerraNet phone switches on, it looks for other handsets within range. Each of these peers can route data or calls for other phones in the network. Though each handset has an effective range of about one kilometre, a call can be routed through several different phones, effectively extending the range as long as there is another phone to serve as a re-transmitter.


The idea has far-reaching implications for the developing world. Although it won't necessarily replace wireless service in metropolitan centers, it could be extremely effective in rural or isolated areas. For example, a small village in Africa doesn't have enough potential subscribers to justify the installation of base stations and towers, as well as the costs of connecting these over hundreds of miles to the nearest existing network. However, a P2P network requires no extra hardware aside from the phones themselves. This, as well as the lack of maintainance required, makes it an attractive option.


This idea has been proposed before, but TerraNet brings some very practical solutions to several important questions. The company has developed several protocols to address day-to-day issues. Switching from tower to tower or provider to provider constantly results in a significant drain on a phone's battery. A power-saving algorithm, vital for places without reliable electricity, is already in place on the phones TerraNet plans to use. Also included is high-end encryption, eliminating concerns over eavesdropping. TerraNet also says the process of distributing data flow through the network has been perfected and patented. While congestion is still possible, this will greatly increase the amount of information that can be passed over the network at any one time.


Finally, the company touts its interoperability with existing networks. Using a gateway consisting of a regular PC with an inexpensive USB device, a TerraNet network can be connected to another P2P or standard Global System for Mobile (GSM) network, meaning users are no longer restricted to their neighborhood in making calls.


Although many details, such as specifics of the protocols and specific frequencies remain closed, TerraNet is confident that commercial applications of their concept will begin within two years. With little information coming from inside the company itself, the results will have to speak for themselves.

Breaking Up Online

Fellow blogger Brie Aleida at Taut Thoughts has a great post today on how to break up correctly via MySpace or Facebook. In short, she writes:

"Today the way we maintain friendships is different. Writing letters and making phone calls have given way to Facebooking and txting. The right way to break up with your boyfriend or girlfriend has changed with time, too. In case you are ready to end things and aren’t sure how or you are just curious, here is a step-by-step way to break up with someone and be clear that it is OVER..." [Read more]

Though the post is hilarious, it does illustrate a great point. The way people start, maintain, and end relationships has changed drastically in the last few years. Today, there is a whole new set of etiquette and social normals for dealing with this kind of thing.

Before the advent of social networking sites, a fight would start over finding the proverbial lipstick stains on a shirt collar. Today the dispute becomes both pettier, and a lot more public. Forgetting to untag yourself in a Facebook picture with your ex can lead to an angry message on your public wall from your current love interest.

In the past, there'd be a box of returned records and sweaters on the front lawn. now, the baggage is electronic. Anyone can sift through your returned dirty laundry if they want.

For an example, take the (in)famous case of a wife uploading her divorce rant to YouTube. To date, the video has gotten thousands of hits. Lawyers say the video won't help her divorce case, but I imagine it was done more for catharsis than monetary gain.

Of course, for those of us happy with our relationship, this is mostly just another form of sick entertainment, akin to watching fists fly on Jerry Springer. But then, I guess that's the intent, isn't it?

Everyone Else Gives T-Shirts; Why Can't I?

It's been about two weeks since I started this blog, and I think it's time to get you readers involved a little. So here goes, the first contest from The Social Creature. Send me an interesting story from your experience with social networking sites like Facebook or MySpace. Your story can be funny or strange, as long as it's entertaining. You can post it as a comment here, as I look at all comments before they become public. Within the next two weeks or so, I'll pick my favorite one and post it here for the world to see. The most entertaining story will get the writer 15 minutes of fame and a free Social Creature t-shirt when the design debuts at the beginning of May. As usual, I also welcome other comments, recommendations and suggestions for interesting topics.

Meanwhile, here are a couple of interesting links from other bloggers:

How to Make and Spread Rumors from Dan Zarella, an expert on viral marketing

3 Great Social Networking Tools from The Fog of Eternity

BookLamp - Book Recommendation System from The Sociable Blog

MyMission2: The World's First Aspirational Network

This month, MyMission2 took its BETA version public. The site hopes to use the idea of a "social contract" to connect people trying to achieve a goal with people who can help. The process is relatively straightforward; fill in some information about yourself, post your mission and start working toward the goal, or respond to the missions of others. This startup has a feel distinct from other social networking sites and is trying to maintain that distinction by concentrating on the mission at hand, so to speak. David Ashford, the CEO, calls this "content-to-people, rather than people-to-people," which makes it a refreshing change of pace for network sites.

Users of the site are known as "missioners". Those asking for help by posting a mission become "comissioners". Other users, the "responders", pledge their support by responding to the missions and form a sort of mini-community around each goal. Users enter their own mission descriptions and sort them by category. Each missioner has the ability to upload relevant files and reward the responder he or she feels has been the most helpful. Whenever a new mission is posted, select users are notified about it based on the information they provide in their profile. When I asked about this selection process, CEO David Ashford told me, "We only alert a small number of people... these are the people that are most likely to be able to help fulfil the mission."

These missions range from the ordinary ("I Want To Learn Spanish") to the somewhat more ambitious (one user aspires to "Live Forever"). What is surprising is the amount of support shown to almost any mission falling within this spectrum. Even the guy that wants to live forever receives a myriad responses, including links to articles on slowing the aging process. Admittedly, there are some strange and mangled requests, such as a plea to help "save the cheerlader" without any follow-on explanation. However, these seem to get weeded out quickly. The users on the site "get it" and tend to band together to discourage and report inappropriate and irrelevant inquiries.

The whole idea is a great example of building social capital. You can ask for help, but you will be rewarded for helping others as well. Each is expected to give and to receive based on a points system. For now, the points just add a bit of competition to the site and help distinguish newcomers from people who have been involved since the BETA went public. In the future, though, the site's creators hope to allow users to redeem their points for real-world rewards.

MyMission2 has been well-received by users, garnering over 3,000 members in its first week. One review has been mixed, however, citing lack of seriousness in the missions, as well as complaining about the amount of information the site wants from each user. It seems the first is being addressed by an active user community and a responsive customer service team, both of which insure that most missions appearing on the site are legitimate or at least not offensive. The second, however, is part of the nature of the beast. Due to the way others are notified of missions, the more information you provide the more you'll be able to help others.

Overall, the site has a few steps left till maturity, but it shows great potential and my experience with it has been extremely positive. Not only have I already seen feedback about this blog referred from MyMission2, but I've also made contact with other people trying to do similar things or accomplish goals which interest me. The MyMission2 team is working to improve usability and add functionality every day. New users are urged to take a look at the MyMission2 Blog for upcoming announcements. And of course, come support my mission on the site by providing feedback and ideas for this blog!

Panic Buyers: Just For Fun

Doing a little research for an unrelated article, I stumbled on a site called Panic Buyers. To make this as simple as I can, they want you to go to your local grocery store on May 15th, 2008, and buy carrots. Yep, that's it. The creators of the site say that this is the result of a drunken idea to have everyone go to the store and buy certain items. In their own words, they're "not quite sure what the reason behind this is is, other than the fact that a global shortage of carrots would be quite a laugh."

The site offers links to a Facebook group promoting the cause, where membership has already surpassed 221,000. There is also a link for "buying real carrots online," which remains unverified at this time. The site suggests putting the carrots to good use and asserts that the creators of the project will be using their carrots to make food for the homeless locally.

The concept is reminiscent of the Paint the Moon project a few years ago. That project hoped to combine the power of peoples' laser pointers from all over the world to create a visible spot of light on the moon's surface. The unprecedented attempt was unsuccessful due to the physics involved.

YourSpace: A Network For Every Taste

Ever want a social network that serves your interest or occupation? MySpace is great for keeping in touch with that girl you met while partying on spring break, and Facebook will keep you posted on how your best friend from high school is doing, but how about meeting others in the same social niches as you? A recent slew of specifically targeted sites make it possible to network with others who share the same job, the same hobby, or the same geographic region.

"For example, let's say that you want to play with your old band, but the band members have moved on and now live in different cities. So use jamNOW to get together," advises the User's Manual for jamNOW, a networking site for musicians. The site is based on a standalone application which connects to the site's server to put you in touch with other musicians. You and your friends can enter a virtual room where the input from an instrument you have connected to your computer mixes with your friends' audio, allowing each of you to hear it as if you were playing in the same location. The software allows for other users to join the room as an audience, and for your music to be broadcast live on the Internet.

In a previous post, I talked about PilotShareTheRide.com, but there are sites for every mode of transportation. Are you in the trucking business, an aspiring trucker or just living vicariously? Layover.com's myLayover provides you with a community of your own. Layover, a job hunting site for truckers, has just launched a BETA version of its social network which allows you to get updates on weather, licensing and training requirements, and share tips with other truckers. It also offers all the standard social network features such as profiles, photo albums, blogs and video content so you're never bored on the road.

If you're looking for a more conventional past-time, there are also plenty of sites for you. CarSpace caters specifically to automotive enthusiasts and people looking to buy or sell cars while Advogato, a veteran of online communities, serves those working in free and open-source software. MyChurch, a site for Christians modeled on Facebook and MySpace, even allows churches to collect their tithes from members online. There is also Cake Financial, designed for investors. The site links to your brokerage accounts, tracks your performance, and lets you monitor trends as well as sending you alerts of your friends' trading activity.

Looking change the world? Care2 provides a forum for those supporting environmental and social causes. It is designed to facilitate activism. The site has a click-to-donate feature, as well as Earth-friendly shopping, online petitions and a healthy living section, in addition to standard fare expected from a social site.

Perhaps you feel you need a more exclusive experience. If you can get in, sites like aSmallWorld and Diamond Lounge allow you to hobnob with the social elite. While neither explicitly states that net worth is a requirement, each one is invitation only and those are hard to come by. Diamond Lounge charges a $60 per month membership fee, and the rules are akin to a country club (the sites are actively patrolled to prevent undesirable individuals and harassment). aSmallWorld, for example, allows just 15% of its members to invite newbies. Diamond Lounge has 5,000 applications pending from billionaires, professional athletes and members of the film industry. In the end, though, they'll only take 500.