### M205 Markov Processes

Copeman's Process of Internet Triangularisation

CPIT

Raison d'état

For any Internet transaction S2 -> S3 that is a CPIT, by offering the service of attaining the transaction S2 -> S1 -> S3, the service provider creates scalar value.

Definition

Copeman's Process of Internet Triangularisation (CPIT) is a term, created by Philip Copeman of the TurboCASH Project, that describes an Internet Transaction as a Markov Process separable into multiple-order Markov Processes each with a scalar cost that cumulatively obtains an equal state but where the cumulative costs of the new cpit processes are less than the original process, CPIT

CPIT < Sigma cpit(i) for a process with the order i where the cost of change of state can be measured as a scalar aij.

The sum of the parts is less than the whole. This is only an illusion, caused by lack of visualisation of order.

Example

10,000 customers turning over R 1,0000,000 each have a joint turnover of 10,000 * R 1 M = R 10 Bn. These transactions require accounting and auditing. Typically this costs these users 3 to 5% of Turnover. The 10,000 users are thus paying north of R10Bn * ).03 = R 300,000 M. If this process is replaced with multiple processes, that achieve the same audit quality at a cost of R 200,000 then the process of auditing such a group of transactions is a CPIT with a scalar value of R 100,000.

Reference

A Markov process is a stochastic model, in continuous-time, describing a sequence of possible events in which the probability of each event depends only on the state attained in the previous event. (Wikipedia)

Illustration

In the second-order Markov Process S, The transaction from State S2 to State S3 namely a23 is a CPIT if a21 +a13 < a23

Philip Copeman