What will happen to blacklisted coins?

[RGBKey]

blacklist ?
not in the Bitcoin Network ...

Yes, the FBI seized coins may be referred as blacklisted. But that's not actually could be implemented in bitcoin eco system. We are free from those shits.

Why are they referred to as blacklisted? They're still valid currency. Even if we don't like where they went we shouldn't "blacklist" them.

[pedrog]

Even if someone was really trying to create a blacklisting mechanism to be used in bitcoin, I don't think it would be possible due to the nature of the system, in a centralized system like Ripple it can be made, not in bitcoin.

Can you elucidate us on how this could be achieved?

It is possible and was discussed under the name tainting. It is similar to fiat money where you note down banknote id numbers when they were used for a robbery. You can identify the flow of every coin. So when a coin came from a scam then it could be shown.

The plan was to investigate where the owner got these coins from in order to track down the scammer.

In fact scammers would be smart and exchange somehow. The one ending with such coins would have to explain who he is or would have coins that are worth less than they are.

And yes, that is one of Hearns suggestions. It is not implemented luckily. I support the 8MB though. Only not hearn.

I know how it works, I don't think it's feasible, you will need a central authority to say which coins are tainted, if this authority is Spanish it may work for Spanish exchanges, but you can exchange those tainted coins in a Chinese exchange, wand why would they care about the guys claiming the coins were stolen in Spain?

[Pab]

 There is not blacklisting in crypto world,coins are dieing becouse of natural death,than scamersaredoing nextcoin just by cloning code.In acase of XT ,XT is already dead, hurray,short live thay had

[SebastianJu]

Even if someone was really trying to create a blacklisting mechanism to be used in bitcoin, I don't think it would be possible due to the nature of the system, in a centralized system like Ripple it can be made, not in bitcoin.

Can you elucidate us on how this could be achieved?

It is possible and was discussed under the name tainting. It is similar to fiat money where you note down banknote id numbers when they were used for a robbery. You can identify the flow of every coin. So when a coin came from a scam then it could be shown.

The plan was to investigate where the owner got these coins from in order to track down the scammer.

In fact scammers would be smart and exchange somehow. The one ending with such coins would have to explain who he is or would have coins that are worth less than they are.

And yes, that is one of Hearns suggestions. It is not implemented luckily. I support the 8MB though. Only not hearn.

I know how it works, I don't think it's feasible, you will need a central authority to say which coins are tainted, if this authority is Spanish it may work for Spanish exchanges, but you can exchange those tainted coins in a Chinese exchange, wand why would they care about the guys claiming the coins were stolen in Spain?

The central authority is one of the problems, yes. Misuse is something you can see from far away already and this central authority would have a very very strong influence.

But the language barrier should not be a problem. Coins are universal and if they are stolen in a certain country should not matter. The tainting would not be a governmental institute, so all complaints could be solved centrally.

This should never ever come.

Sometimes i think hearn in fact still works for google and he worked there in fact for the nsa. Now he only works for the nsa. His ideas are simply so stupid that it is no fun.

If that is the case then someone at the nsa made a pretty stupid decision to bring the tor ddos protection into the code. Stupid guys.

[SebastianJu]

There is not blacklisting in crypto world,coins are dieing becouse of natural death,than scamersaredoing nextcoin just by cloning code.In acase of XT ,XT is already dead, hurray,short live thay had

Did you buy this account? You really really should work on your correct language. Signature campaign runners don't like bad language very much.

And no, XT has nothing to do with churning out the next scamcoin. Though XT won't survive anyway. Practically everyone using it only wants to push the inclusion of a higher block size in core bitcoin.

[Slark]

XT is now dead but that does not mean we are out of the forest. I keep seeing some regulation obsessed people who believe bitcoin simply must change to bring it in line with other payment systems. This means adding identity information to bitcoin transactions and making it possible to blacklist funds will be serious possibility in the future.

[RodeoX]

I'll still accept them, how bout you? 

[CohibAA]

Anyone concerned about increasing the privacy of bitcoin transactions should know or find out about JoinMarket.

The idea behind JoinMarket is that holders of bitcoin will allow their coins to be mixed with in return for a fee. The mixing will happen in coinjoin transactions. They form a kind of smart contract which means your private keys will never leave your computer so there is no risk of loss (barring malware or bug*)

Put simply, JoinMarket allows you to improve the privacy of your bitcoin transactions for low fees in a decentralized fashion Because of the fee paid, owners of bitcoin will be able to earn an income using JoinMarket.

As the risk is very low, the reward will also be low because of competition between fee-earners. It means that you will be eventually able to do a coinjoin very cheaply. We already see that holders of bitcoin are willing to earn very small amounts per day by lending on the bitfinex exchange, and that contains a substantial risk that bitfinex will go disappear.

Coming (eventually) to wallets you use...

[tokeweed]

Don't worry, when BTC goes back up above $1k there will be no blacklist. 

[Amph]

it would be a good news, less coins in circulation more value for the remaining coins

you can't ask any better, this does not mean that this value should increase, having a very few amount of coins in the end isn't ideal

[Q7]

Having lost faith in bitcoin doesn't mean that the rest of us here share the same sentiment as yours.  For the person to pass on the so-called tainted coins to you there must be some form of exchange going on for example a sale of item. If you are doing things legitimately there's always a proof to show as evidence. Same applies to fiat system if somebody makes huge payment to your account and that get tracked by your tax collector and as long as you have a receipt to prove, it should be nothing. Somehow after reading this thread I have a feeling that we are moving towards unnecessary  state of paranoia.

[Mickeyb]

it would be a good news, less coins in circulation more value for the remaining coins

you can't ask any better, this does not mean that this value should increase, having a very few amount of coins in the end isn't ideal

I don't agree! The day we would start blacklisting coins would be the day that we would have signed a death sentence for Bitcoin. Bitcoin fungibility is extremely important. I can't even imagine what mess would we get ourselves into if we would start accepting some and refusing other coins.

People would lose trust and interest into Bitcoin right away. Imagine if you are to wake up just to find out that half of the coins in your stash are worthless since they have been through Silk Road for example, which might as well be the case and they have been blacklisted.

[zero01]

blacklist coin may be removed or not used anymore  

[Soros Shorts]

blacklist coin may be removed or not used anymore  

I will buy your blacklisted coins for 50% of the spot rate.

[ranochigo]

Blacklisted coins isn't the way to go. Blacklisting coins requires a central authority to list the blacklisted coins and they would not be accepted. This would cause a huge issues with the already limited supply of Bitcoin, if a large hack happens, all of those coins would be blacklisted. By blacklisting them, you are implying that the owner is a criminal which can be untrue if the scammer exchanges it to fiat by using an exchange or mixer. It's just like banknotes, there are traces of cocaine everywhere even if the owner doesn't take drugs.

[maokoto]

I agree it would require centralization, and I don't think they will go through the pain of putting it to work.

It is doubtful that they work hard to impose an unpopular measure like that.

[MicroGuy]

I agree it would require centralization, and I don't think they will go through the pain of putting it to work.

It is doubtful that they work hard to impose an unpopular measure like that.

I'm pretty sure Bitpay has already begun the practice of blacklisting.

[SebastianJu]

blacklist coin may be removed or not used anymore  

I will buy your blacklisted coins for 50% of the spot rate.

Exactly. No one would want such coins. Even when it is only the hassle of losing privacy. We then would have bitcoins that have a normal value and those with a lower value.

And this would mean losing trust in bitcoin since no one wants to receive undervalued coins. The alternative would be to use services that check coins. But if that would be a good solution for privacy?

[Febo]

Are those guys aware that every coin in the world most likely has gone true silkroad just like every 50 dolla bill is used to sniff cocaine or to trow at a hooker? How is it even possible that bitcoin XT is launched?
I am really losing faith in bitcoin. If it becomes centralized it isnt worth more then citybankcoin.

Those who will not like it will not use Bitcoin, there is and always will be many other payment systems.

[neonshium]

It would be better if they deleted wallet files of those black listed coins. Because burning the bitcoins is the most welcome thing among bitcoin community.
So, burn it. USually they sell them in auction. People start using it as usual.