Title: Is using digital signatures to authorize off-chain transactions a good idea? Post by: ning on February 20, 2014, 03:51:19 PM In the future, as for micro-transactions, transaction fees will probably be relatively more expensive than they are today. For on-chain transactions, digital signatures have been used to authorize transactions. And this method guarantees security and accountability.
What about off-chain transactions? Can and should digital signatures be used to authorize off-chain transactions? Well, not sure. But, why not? Title: Re: Is using digital signatures to authorize off-chain transactions a good idea? Post by: ning on February 20, 2014, 03:52:27 PM Here's a simple scheme for employing digital signatures for off-line transactions:
Mr. Goodman: trusted 3rd party Andy: an identity (not necessarily a person) Bree: an identity (not necessarily a person) [Scene 1: Opening up an account with Mr. Goodman] Andy: Hi, Mr. Goodman, I want to open up an account with you. Mr. Goodman: Choose a wallet address you like, and sign this <Random-String> Andy: Here you are: {<Wallet-Address>, <Signature-for-the-Random-String>} Mr. Goodman: Here is your deposit address <Deposit-Address> and you are all set! [Scene 2: Depositing] Andy: Hi, Mr. Goodman, I want to make a deposit. Mr. Goodman: Sure, just send fund to your deposit address. (Andy sends funds to his deposit address) (Mr. Goodman consults the Blockchain and confirms Andy's deposit) Mr. Goodman: Your account has been credited. [Scene 3: Withdrawing] Andy: Hi, Mr. Goodman, I want to make a withdrawal of 0.33 BTC. Mr. Goodman: Sure thing. You just need to sign this: {withdraw, {from, Andy}, {to, <External-Wallet-Address>}, {amount, 0.33 BTC}} and pay a miner fee of 0.0001 BTC. Andy: Done, and this is the signature <...> Mr. Goodman: (After verifying the signature) The fund is on its way. [Scene 4: Off-chain transferring (Finally!)] Andy: Hi, Mr. Goodman, I want to transfer 0.00007 BTC to Bree. Mr. Goodman: Sure thing. You just need to sign this: {transfer, {from, Andy}, {to, Bree}, {amount, 0.00007 BTC}} and pay a fee of 0.00000007 BTC. Andy: Done, and this is the signature <...> Mr. Goodman: (After verifying the signature) Done. Title: Re: Is using digital signatures to authorize off-chain transactions a good idea? Post by: ning on February 22, 2014, 09:59:22 AM [Scene 5: Closing an account]
Andy: Hi, Mr. Goodman, I want to close my account registered with you. Mr. Goodman: Sure, please sign this {close_account, <Andy's-Wallet-Address>} Andy: Done, and this is the signature <...> Mr. Goodman: (After verifying the signature) You are all set. Bree: Hi, Mr. Goodman, I want to transfer 0.0003 BTC to Andy, and this is the signature <sig...> for {transfer, {from, Bree}, {to, Andy}, {amount, 0.0003 BTC}}. Mr. Goodman: Oh, I'm sorry, but Andy is no longer a customer with us, so this transaction cannot go through. You'd better make a on-chain transaction. Bree: OK, I'll call him later, then. |