Looks I can only post in the noob forum
Reading the funny thread with Foodstamp and the grief he's caused, it surprised me how easy it was to execute a man in the middle (mitm) attack. In order to overcome this, the seller accepting paypal has to know he is giving his bitcoins to the same address the paypal is coming from, and the mitm succeeds because he doesn't have to provide a paypal account, which may be traced. So basically my idea is, for every transaction, you get a new receiving address, take the first 10 digits of it, and register that as a one time use email address and associate it with paypal. So for example you would create y2fQ63m05kPVjohndoe@gmail.com
and then email the seller
"Hey, send me 10btc at address y2fQ63m05kPV........... I just sent you $15 from y2fQ63m05kPVjohndoe@gmail.com
If the seller were being scammed, the email he could see in paypal would not match up with the address he was being told to send coins to, and would not complete the transaction, hopefully refunding the paypal to the unknown victim, or emailing the victim directly. The buyer would then transfer the 10btc to a new wallet and get a new email address for the next transaction. If he kept the same one, an attacker could register y2fQ63m05kPVjohndoe@yahoo.com
and use it for a future attack. Thoughts?