The Holy Grail! I wish I could kiss the author of Bitmessage on his face.

[justusranvier]

Impressed with the progress on this and inspired by what it means for all!

Just wait until Moneychanger gains the ability to also act as a Bitcoin wallet too, transparently.

[westkybitcoins]

Incredible.

I cannot wait to see this finally running full-steam.

Wish I'd noticed it when it first appeared in May.

[JaSK]

I'm working hard on the bitcoin implementation right now, can't wait to see it in action either

[dahugobez]

Fantastic !

Thanks for presenting Pandora's box  

[AnArk RE]

Not meaning to necro, but just wanted to make sure everyone got the latest update on this project.

I've just recorded some new videos showing the desktop client in action.

----------------------------------------------------------

INTRO:  http://goo.gl/Ea6rzq

Send/receive payment, invoicing, untraceable cash, namecoin integration, end-to-end encrypted messaging, etc.

----------------------------------------------------------

ADVANCED:   http://goo.gl/i0J3AF

Market trading, decentralized bazaar, virtual corporations, smart contracts, legacy banking integration, etc.

----------------------------------------------------------

Also, the videos reference a couple of articles. Here are the links to those articles:


Voting Pools: How to Stop the Plague of Bitcoin Heists, Thefts, Hacks, Scams, and Losses

http://bitcoinism.blogspot.com/2013/12/voting-pools-how-to-stop-plague-of.html


Lex Cryptographia

http://bitcoinism.blogspot.com/2013/12/lex-cryptographia.html

fellowtraveler,

I see you're speaking at the Miami conference in a couple of weeks. Will you be discussing the technical details of OT during your talk? If not, would you consider a mini breakout session?

[fellowtraveler]

fellowtraveler,

I see you're speaking at the Miami conference in a couple of weeks. Will you be discussing the technical details of OT during your talk? If not, would you consider a mini breakout session?

I suppose I could do a breakout session. I'll be walking around for a few days answering questions anyway I'm sure.

I suggest also checking out the wiki, the videos, etc.

[yamamushi]

I can't wait to see what the near future holds for Moneychanger, and looking forward to your talk at the Austin Bitcoin Conference.

[bitdig]

Amazing!
Is it already possible to build (at least beta version) of a public exchange, where actual exchanges can be performed, based on this?

[marcus_of_augustus]

Amazing!
Is it already possible to build (at least beta version) of a public exchange, where actual exchanges can be performed, based on this?

short answer is yes.

... but be aware the learning curve for the backend server config/set-up is steep.

[Its About Sharing]

Just a big WOW. This is something really incredible you are working on. Keep us updated!
Does seem a bit complicated, but surely things will be made a bit more easy for the average user.

Any issues with the app on IOS (being that it integrates payments) or do you see Apple giving in here?

[luv2drnkbr]

Just wait until Moneychanger gains the ability to also act as a Bitcoin wallet too, transparently.

and be a color-coin enabled wallet....

[bitdig]

Can you please explain the deposit part of the system, how and where to a user deposits money? Or the company running the server should handle this part?

[Lethn]

Holy shit balls, how did I miss this?

[Its About Sharing]

Holy shit balls, how did I miss this?

Sort of how Black Swans work.
I did see BTC at cents, but how did I miss getting in then? 

[justusranvier]

Can you please explain the deposit part of the system, how and where to a user deposits money? Or the company running the server should handle this part?

OT doesn't work that way. It doesn't handle money - just obligations.

Another way to think of it is that OT handles liabilities, not assets.

For example, if you are running a Bitcoin wallet on your own computer (Bitcoin-Qt, Multibit, Armory, etc) and you have a balance, there is no counterparty risk associated with them: that balance represents an asset you control.

If you deposit your bitcoins on Mt Gox then you don't have bitcoins any more, you have a promise from Mt Gox to allow you to redeem a balance in their system for bitcoins - your balance on Mt Gox is their liability.

So, if you've got a system that creates liabilities, then OT is superior way to track these liabilities compared to the alternatives. Returning to the previous example, Mt Gox doesn't use anything more complicated than a MySQL table to track its liabilities. They don't give you cryptographically secure receipts, and if they choose to alter your balance (via a simple database command) there's nothing you could do about it. You can't even really prove that they owe you any bitcoins at all, at least for reasonable definitions of "prove".

Mt Gox isn't special in this way - all existing Bitcoin websites work pretty much the same way.

Your original question is backwards then. OT should be used where third parties are already depositing funds in order to add better security and functionality to the situation.

[bitdig]

I just want to understand, if I setup OT server, can it handle MTGox like operation, where there is no actual website for exchange, but OT server with end users using software from their computers... for the simplicity, lets say the service would offer only BTC/USD exchange service on the beginning and lets say we offer an option to actually deposit money the very same way as mtGox (wire transfer etc), is it possible to create such a virtual exchange with deposit option? The thing is that the average Joe needs it to be as simple as possible and the very first thing he needs an ability to have those "assets" in his own wallet, in our case $USD for the beginning... to start rolling...

Can you please explain the deposit part of the system, how and where to a user deposits money? Or the company running the server should handle this part?

OT doesn't work that way. It doesn't handle money - just obligations.

Another way to think of it is that OT handles liabilities, not assets.

For example, if you are running a Bitcoin wallet on your own computer (Bitcoin-Qt, Multibit, Armory, etc) and you have a balance, there is no counterparty risk associated with them: that balance represents an asset you control.

If you deposit your bitcoins on Mt Gox then you don't have bitcoins any more, you have a promise from Mt Gox to allow you to redeem a balance in their system for bitcoins - your balance on Mt Gox is their liability.

So, if you've got a system that creates liabilities, then OT is superior way to track these liabilities compared to the alternatives. Returning to the previous example, Mt Gox doesn't use anything more complicated than a MySQL table to track its liabilities. They don't give you cryptographically secure receipts, and if they choose to alter your balance (via a simple database command) there's nothing you could do about it. You can't even really prove that they owe you any bitcoins at all, at least for reasonable definitions of "prove".

Mt Gox isn't special in this way - all existing Bitcoin websites work pretty much the same way.

Your original question is backwards then. OT should be used where third parties are already depositing funds in order to add better security and functionality to the situation.

[justusranvier]

I just want to understand, if I setup OT server, can it handle MTGox like operation, where there is no actual website for exchange, but OT server with end users using software from their computers... for the simplicity, lets say the service would offer only BTC/USD exchange service on the beginning and lets say we offer an option to actually deposit money the very same way as mtGox (wire transfer etc), is it possible to create such a virtual exchange with deposit option? The thing is that the average Joe needs it to be as simple as possible and the very first thing he needs an ability to have those "assets" in his own wallet, in our case $USD for the beginning... to start rolling...

If you're operating a service that accepts customer deposits, then you can issue OT receipts for those deposits instead of just making database entries in your own system. You technically don't actually need to run your own server for that - you can theoretically use any OT server.

The advantages of doing this from the perspective of your customers is that it means that you won't have the ability to arbitrarily change their balance, they will will have cryptographic proof of how much you owe them, and they can trade their balances like currency.

The disadvantages are that the customers will need to install Moneychanger (or some other suitable OT client) to use your service and Moneychanger isn't finished yet. Also the features that OT receipts provide which your customers will like probably aren't legal to give them when you're issuing receipts for USD.

[kellrobinson]

Also the features that OT receipts provide which your customers will like probably aren't legal to give them when you're issuing receipts for USD.

Meaning you'd need money transmitter licensing for every State (in which you have customers)?

[marcus_of_augustus]

Also the features that OT receipts provide which your customers will like probably aren't legal to give them when you're issuing receipts for USD.

Meaning you'd need money transmitter licensing for every State (in which you have customers)?

Only for US-based customers ... the servers can be operated in any jurisdiction at all, or in the cloud with multiple parallel instances making it impossible to know which server is performing the notary function. The issuers could also be based in any jurisdiction, or perhaps even as pseudoonymous entity operating on anonymous network like Tor, I2P, Freenet, etc.

[bitdig]

Thank you for the explanation, now it is much clearer.
Ok, the issue with receipt is not a problem as far as we aren't talking about USA, even more, if not operated anonymously, it can be operated under certain bank/exchange license, I already have some legal solution...
Now another question. Is it possible to use OT server as a core server (through API?) with mtGox like interface for customers, until moneychanger is realeased or just for those customers who don't want to download it?

I just want to understand, if I setup OT server, can it handle MTGox like operation, where there is no actual website for exchange, but OT server with end users using software from their computers... for the simplicity, lets say the service would offer only BTC/USD exchange service on the beginning and lets say we offer an option to actually deposit money the very same way as mtGox (wire transfer etc), is it possible to create such a virtual exchange with deposit option? The thing is that the average Joe needs it to be as simple as possible and the very first thing he needs an ability to have those "assets" in his own wallet, in our case $USD for the beginning... to start rolling...

If you're operating a service that accepts customer deposits, then you can issue OT receipts for those deposits instead of just making database entries in your own system. You technically don't actually need to run your own server for that - you can theoretically use any OT server.

The advantages of doing this from the perspective of your customers is that it means that you won't have the ability to arbitrarily change their balance, they will will have cryptographic proof of how much you owe them, and they can trade their balances like currency.

The disadvantages are that the customers will need to install Moneychanger (or some other suitable OT client) to use your service and Moneychanger isn't finished yet. Also the features that OT receipts provide which your customers will like probably aren't legal to give them when you're issuing receipts for USD.