Enabling Transactions

You place a pack of chewing gum on the counter at a convenience store. The store attendant looks at the gum and says, “one ninety nine.” You place two dollar bills on the counter. The attendant takes the bills and hands you back a shiny one cent coin. You thank her and walk out, peeling the cellophane from the gum package as you head back to your car.

This minor episode reenacts a ritual members of our species have conducted for tens of thousands of years. We call it a transaction: two parties meet to exchange something of value. You want something; another person who has that thing establishes the conditions under which s/he would be willing to part with it; you reach consensus; you hand over something of value that satisfies those conditions; the other person gives you the thing you wanted; you both go on your ways. Ideally, both parties are better off after the transaction has concluded.

In some ways, history is the story of how we’ve perfected our ability to transact with each other. At an earlier stage, you and the store clerk would’ve had to negotiate over the relative value of the goods you were exchanging. (“A pack of gum? That’ll be a chicken thigh, thank you.”) Eventually we abstracted value into currencies we could all agree on, and then abstracted it even more. Eventually, it became pure information; today you can pay for the gum by waving your wristwatch over the counter — a magic trick that would’ve baffled our forebears.

The valuables we exchange musn’t be pecuniary. The penitent man confessing to a priest is transacting; he’s sharing intimate information about his life in exchange for peace of mind. Few such interactions stand on their own; more often they’re part of a sequence of interactions that follow one another, building trust one step at a time. The act of confession likely isn’t the penitent man’s first transaction with a priest; more likely he’s been in many prior interactions with other church functionaries that led up to this point in his life. Some of them served as gating factors that mark a significant transition in the person’s life. For example, the man had to become baptized at one point; i.e. he gained membership in a community in exchange for part of his identity and independence. That, too, was a transaction.

Architecture exists to support such transactions. The convenience store makes it possible for you to purchase gum much in the same way that the confessional makes it possible for the man to relieve his conscience. Buildings set aside parts of our physical environment for particular uses; the convenience store has all the necessary components to ease the exchange of gum for currency.

Information environments are also created to support transactions. I have a bag of rock salt sitting in my Amazon.com shopping cart at the moment. (My kids’ birthdays are coming up and I’m going to make ice cream for them.) I can’t buy it yet because this particular product is what Amazon calls an “add-on” item, which means I must buy other goods amounting to more than US$25 before I can purchase the rock salt. So now I’m wandering Amazon.com looking for other things I can buy. When I do find something, I will add it to my cart. Eventually, I will check out: I will click on a button that marks my consent, setting in motion a process wherein my credit card will be charged and a series of machines (and some humans) will gather the things I’ve requested and convey them to me.

I will undertake this transaction without overthinking it, much as you do when you pay for a pack of gum at the store. But this transaction is much more complicated than the exchange of money for a pack of gum. So much has had to happen beforehand for me to be able to do this. First finding out about Amazon.com, opening an account in the system (over a decade ago!), making my first purchase, eventually trying to purchase an “add-on​” item and figuring out that it’s a different type of good… All transactions, all critical moments that led up to this most recent purchase. (And those are only the transactions that involved Amazon — I also had to transact with my bank in order to secure the necessary credit to pay for the rock salt.) Information environments supported all of these interactions successfully, to the point where I now take them for granted.

In the past, at least one other human would’ve been required for me to be able to buy rock salt, but all we need now is a place designed to enable the required sequence of transactions. In buying the rock salt, I’m not transacting with another person in the way the penitent man transacts with a priest or you transact with a store clerk when you buy gum. When I shop on Amazon.com, I transact with the environment itself. People are still involved, but indirectly; some who work in logistics will fulfill my request (although one suspects their involvement, too, will whittle away in time) and those who designed, built, and manage the place where the transaction is happening. Increasingly the responsibility for enabling the exchange of value in our societies falls on the designers, developers, and the managers of the environments where we transact.