Bitcoin Forum

Keyhotee ID allows an individual to preserve their pseudo-anonymity while also allowing (if there is a court order) a trail to the real identity.

It's pseudo-anonymous because websites and businesses don't get to have your private information. But there are points in the system where you can verify your real identity so that someone knows that these transactions are from a verified person. This is a potential solution but it's not even being discussed?

http://www.youtube.com/watch?v=3pZaTdEtK-8

Watch the video and tell me if you think this could protect privacy while also allowing for dealing with bad actors in the system?

The Keyhotee-scheme might be a solution but I can't click on any of your options as I don't know all about your product. I guess it is open source and I guess it is great but the questions would make users endorse a service they don't know.

From the video it looks like the system has a few flaws, first is relies on a number of sub-systems (a DNS system, a user client, a merchant client, the Meat-space identity verifier etc etc) ALL of which are dependent on the others to function properly.  It would be hugely difficult to launch such a complete system in one lift.  Second the system as proposed doesn't even support credit cards so it's got little chance of being adopted by the mainstream retails. 

Third the delivery services are intended to be the only ones holding shipping addresses, this is untenable because your location IS relevant to the merchant most of the time.  At the very least they need to know how much to charge for the delivery and very often they are not going to be willing or legally able to conduct business across borders.  It also presents the single largest hurdle in adoption because of the Fed-Ex & UPS Duopoly in shipping at least one of these MAMMOTH companies must integrate this system into their operation for this Keyhotee to work at all.

Lastly the really BIG flaw I see is that their is no revenue stream to allow a company to do the massive customer-support, coding and logistical challenge launching all the systems would be.  Much like Linux, it can be 'free' in one sense but a business model still needs to exist to roll something out, geeks may program for free but they don't do tech support for free.

I think that it will only make things worse by providing the promise that tracking owners of coin and who made a certain transaction is acceptable.  

The beauty of Bitcoin is in its de-centralisation, the lack of control and coercion, that brings us together globally to rise above petty nationhood.

No, it was never designed to accommodate that use case.

Fundamentally it appears to be about decentralized identities, which can aid secure communications.

However as far as I can see it does nothing about obscuring your IP address (nor the centralized signed identities authorities can compel to be released) from your coin spends, thus doesn't address coin taint at all.

VoIP with an obscured IP address is an extremely challenging problem, since low-latency mix-nets such as Tor are subject to timing analysis attacks. In short, we can hide what you communicated in real-time VoIP, but it is very difficult to hide the IP addresses of participants in a VoIP communication.