Bitcoin Forum
December 11, 2016, 12:25:33 PM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: xcoin - the bitcoin fraud solution?  (Read 5507 times)
da2ce7
Legendary
*
Offline Offline

Activity: 1218


Live and Let Live


View Profile
October 15, 2010, 02:59:25 PM
 #1

I have created a new thread, because (I think) I have stumbled across an elegant solution to one of the main issues with the bitcoin community, Visa, MasterCard, and other fraud.
The solution is xcoins:  the ultimate, untrusted currency.

Ok I have had a brainwave, Please bear with me. I’ll try and explain it neatly.

Ok, in my previous posts: http://bitcointalk.org/index.php?topic=1467.0 I outlined my first idea of xcoins, the inverse version of bitcoins.
Simply put, they are the inverse, inflationary analogue to bitcoins. Please read the first two posts for background.

Since xcoins are inflationary, their value, if kept, (or deemed invalid), will always tend towards zero.
This property makes them useful for holding temporary value.

What I propose is that a one use xcoins as a way to hold the value of promised bitcions, until the transaction is deemed valid.
When a promised bitcoin transfer is made, instead of transferring the promised bitcoins, a value of xcoins is marked with the record of the promised bitcoins, and transferred to the 2rd party.  This second party can continue to sell and trade with other shops and services that accept the liability of xcoins marked by the promisor.  This allows the network to check that the bitcoins (promised) cannot be traded or double promised.
In the case that the promised transfer is found to be valid, the marked xcoins, (or the sub divisions of them), can be returned to the promisor to be traded for the bitcoins promised, (or the share of the bitcions promised).
However, in the case that the promised transfer is deemed invalid, the xcoins are marked in the network as invalid, and no bitcoins are awarded on their return.  This is the liability of accepting xcoins marked with bitcoin value.
If a seller has high confidence of the transaction, it can issue xcoins worth the same amount to the bitcoins promised, this allows 3rd partys to see the confidence the seller has…  While, the seller, is still able to retract the transaction if indeed invalid.

This system is dependent on the good name and reputation of the promisor.

There is no risk of giving away bitcoins that will be forever stolen.

What do you think? Would such a system work, would such a system even be moral?

EDIT: Changed a few things, now works better.

One off NP-Hard.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
FreeMoney
Legendary
*
Offline Offline

Activity: 1246


Strength in numbers


View Profile WWW
October 15, 2010, 08:53:46 PM
 #2

It sounds terrible. If you want to digital currency that might end up disappearing just use any other currency at all.

And it makes no sense to think of THE value of an xcoin because it completely depends on the credit worthiness of the person who claims they will back the coins at some point in the future and only if a previous credit transaction clears.

If sleaze-bag Jimmy goes to FlyBuyNight Bitcoins and get xcoins will BitcoinRetailer take them at the same value as xcoins from upright John with xcoins from MtGox? Of course not, so the retailer has to do credit evaluations based on both the source of the xcoin and user before making a trade.

Anyway, the problems we've been having are because currencies are able to be pulled back. Bitcoin can't, that makes it good. Adding another layer of pull back currency doesn't help at all. 

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
da2ce7
Legendary
*
Offline Offline

Activity: 1218


Live and Let Live


View Profile
October 16, 2010, 01:39:09 AM
 #3

I agree, the irrevocability of bitcoins make them great!  However, in my opinion, is a curse also, when trying to trade with revokable currencies.

For example:
If I was a musician, I could have a site that had a donate address.  I would, of course, accept bitcoins… But I could also accept xcoins.  I could wait for them to be either marked as fraud, or valid and trading them in for bitcoins. (And either way I’ll be better off)
It works the same as MtGox, however instead of locking up the coins for 30day, shops and other places that are willing to accept the risk (eg. Donations, or goods that get delivered in a longer time that the verification time, can be traded under good will with xcoins)…
Bitcoins are great; if we all traded them, then there would be no issue… However their needs to be some sort of interface between the retractable currencies, and the non-retractable.

Also I see no problem about traders needing to check the owner, and the issuer of an xcoin with attached value.  That works in a very free market and capitalistic way, where reputations are, indeed, very important.  The thing about it is that the liability is at worst the same, as MtGox going rouge and stealing all the bitcoins for itself for the transfers within the 30 days.

One off NP-Hard.
FreeMoney
Legendary
*
Offline Offline

Activity: 1246


Strength in numbers


View Profile WWW
October 16, 2010, 04:36:44 AM
 #4

You need to examine the rep of everyone along the way though.

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!