The ALTA Account FAQ

What is an ALTA account?

An ALTA account is an anonymous asset account held at the Digital Monetary Trust (DMT) and accessed via the World-Wide Web. ALTA assets may include currency deposits, shares of certain stocks, certain types of warrants, and whatever other assets (such as gold) that the system is equipped to handle.

What are ALTA accounts good for?

ALTA assets may be freely paid and received in the ordinary course of business among ALTA participants at small transactions costs. As such, the ALTA system represents a private and confidential monetary economy taking place outside the confines of the nation-state. Most (not all) of these assets may be also transferred outside the ALTA system into the ordinary global economy. Such transfers are, however, more costly and transactions lose their confidentiality outside the system.

Who holds ALTA accounts?

We don't know. ALTA customers, like all DMT customers, are anonymous.

What is the relationship between "ALTA accounts" and "DMT accounts"?

ALTA accounts are held in the DMT worldwide computer network, and serviced by DMT servers. There are, however, several differences between ALTA accounts and DMT accounts:

1. DMT transactions are conducted using DMT client software (a "DMT browser"). ALTA transactions are made using ordinary web browsers, such as Internet Explorer or Netscape Navigator, which make a secure connection to the DMT server. (In principle the DMT browser is more secure.)

2. The DMT client database (containing digital signatures on the customer's account information) is held on the customer's own computer. The ALTA client database, which contains the account information for an ALTA customer (his "ALTA portfolio"), is located on the DMT server itself.

3. Currently, access to LESE (the Laissez Faire Electronic Stock Exchange) is only available to those holding ALTA accounts. However, assets in the system may be easily transferred between ALTA and DMT accounts. (ALTA payments to the claim number of an account held by a DMT browser can be collected by the DMT browser. Similarly, DMT browser payments to the claim number of an ALTA account can be collected by the ALTA account.)

How is privacy maintained in the ALTA system?

There are numerous mechanisms.

When one customer pays another, payment is never made directly to a username, or even ALTA account number. Nevertheless, this payment can be made with the confidence that only the proper party can collect the payment. Payment is made to an ALTA claim number, which is a one-way function (a hash) of the payee's account number. This makes it impossible for one customer to masquerade as another, for the simple reason that one has to have the account number itself (not just the claim number) in order to collect payments.

In addition, customers you do business with are prevented from keeping records of payments to your ALTA account number (as opposed to your claim number).

From the point of view of the customer receiving payments, new account numbers can be freely created for special purposes, and can later be abandoned and the funds transferred to a new account. Thus, over time, there will not only be no list of transactions associated with any particular account number, but the account numbers themselves can be removed from the server database at the customer's own discretion.

Of course, any customer may choose to keep any internal records he desires, at his own discretion and risk. But the DMT server and the system of cryptology prevents spying on the financial affairs of a customer.

The ALTA system uses DMT technology. A technical description of DMT's anonymous account system may be found at the following location:

The Digital Monetary Trust - Part 2

A different description, that covers the same material at an intuitive level, may be found at:

How DMT Works: A Simple Explanation

What happens to money placed in ALTA accounts?

The ALTA system follows DMT rules. For information on the DMT balance sheet, see

The Digital Monetary Trust - Part 1

for an explanation. Essentially the ALTA system must hold its assets in the form of cash; high-quality, short-term securities; or gold. Commercial loans, long-term or otherwise risky securities, and risky assets (excepting a small investment in gold, which is a risky investment) are prohibited. In particular, loans cannot be made to Laissez Faire City, or associated private, entities—such as LFCIT, MUNI-Corp, or DODGE CITY—all of which would fall under the category of commercial loans.

How is access to ALTA accounts protected?

An customer must provide his username and password to access his "ALTA portfolio." Thereafter, each individual ALTA account is protected by a pass-phrase.

Why do you require the pass-phrase to be a minimum of 32 characters?

That's the minimum needed for reasonable security. After all, it is the customer's assets. If he wants to leave his money lying on the sidewalk of a busy street corner, it's okay with us. But if so, he should stay the hell out of the ALTA system.

What is the ALTA network?

The ALTA network is the DMT network. This involves computer servers in different political and geographical jurisdictions, which communicate over the Internet by end-to-end encrypted packets which form a virtual private network (VPN). For more information, read the DMT-FAQ

What are the fees charged in ALTA?

A guide to fees in the DMT/ALTA/LESE system may be found at: DMT Fees

How do I activate my ALTA accounts for trading on LESE?

Click on the name of the ALTA account. You will see a summary screen, and a LESE-enable button. The first time you do this you will create a LESE password (which must be different from your ALTA password) and a LESE username (same as your ALTA username).

Where can I read more about the DMT/ALTA/LESE system?

A general road map to the available articles may be found at: DMT Guide