mmsen (OP)
|
|
September 15, 2014, 11:45:02 AM |
|
...then how did the Mtgox money vanish into (seemingly) thin air?
Is the ledger incomplete? Is it possible to keep transactions 'off the book' so to speak?
Please help this n00b to understand what happened.
|
|
|
|
|
|
|
|
Each block is stacked on top of the previous one. Adding another block to the top makes all lower blocks more difficult to remove: there is more "weight" above each block. A transaction in a block 6 blocks deep (6 confirmations) will be very difficult to remove.
|
|
|
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
|
|
|
|
JJB
|
|
September 15, 2014, 11:51:35 AM |
|
The bitcoins that are on the exchnages are usually off the chain transactions ie you send the money and your account gets credited, but those coins will go somewhere else like a hot or cold wallet so you essentially just have an IOU.
|
|
|
|
mmsen (OP)
|
|
September 15, 2014, 12:02:20 PM |
|
The bitcoins that are on the exchnages are usually off the chain transactions ie you send the money and your account gets credited, but those coins will go somewhere else like a hot or cold wallet so you essentially just have an IOU.
That sounds like a recipe for disaster - what measures were put in place to avoid fraud? If any? That is to say - why did so many people feel comfortable trading with/within such an entity?
|
|
|
|
Towlie
Member
Offline
Activity: 65
Merit: 10
|
|
September 15, 2014, 12:06:44 PM |
|
The bitcoins that are on the exchnages are usually off the chain transactions ie you send the money and your account gets credited, but those coins will go somewhere else like a hot or cold wallet so you essentially just have an IOU.
That sounds like a recipe for disaster - what measures were put in place to avoid fraud? If any i.e. why did so many people feel comfortable trading with/within such an entity? Well I think that was the problem - a fraud was committed. People were buying and selling coins that didn't exist any more. Theres not much difference between this example and the banks though. They lend out money they don';t have for example.
|
|
|
|
clickhero
Newbie
Offline
Activity: 14
Merit: 0
|
|
September 15, 2014, 12:21:31 PM |
|
What is, in simple words, the bitcoin ledger?
|
|
|
|
Towlie
Member
Offline
Activity: 65
Merit: 10
|
|
September 15, 2014, 12:25:21 PM |
|
What is, in simple words, the bitcoin ledger?
lol the blockchain is the bitcoin ledger.
|
|
|
|
Skeksis
Member
Offline
Activity: 66
Merit: 10
|
|
September 15, 2014, 12:43:35 PM |
|
but the mtgox bitcoins they did have, are still on the blockchain, however mt gox lost the private keys or the private keys got stolen.
Can the private keys not be traced though? If someone spends the private keys wont it show on the blockchain where they went?
|
|
|
|
BurtW
Legendary
Offline
Activity: 2646
Merit: 1131
All paid signature campaigns should be banned.
|
|
September 15, 2014, 02:35:00 PM Last edit: September 15, 2014, 02:45:04 PM by BurtW |
|
but the mtgox bitcoins they did have, are still on the blockchain, however mt gox lost the private keys or the private keys got stolen.
Can the private keys not be traced though? If someone spends the private keys wont it show on the blockchain where they went? If they were stolen then they have been mixed and are not traceable.
|
Our family was terrorized by Homeland Security. Read all about it here: http://www.jmwagner.com/ and http://www.burtw.com/ Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
|
|
|
Coef
|
|
September 15, 2014, 03:26:08 PM |
|
What is, in simple words, the bitcoin ledger?
The bitcoin ledger is the blockchain (not the website blockchain.info, but the chain of blocks from the genesis block 0 to right now block 320828). It records all the on-chain bitcoin transactions starting from the birth of bitcoin.
|
|
|
|
RodeoX
Legendary
Offline
Activity: 3066
Merit: 1145
The revolution will be monetized!
|
|
September 15, 2014, 03:31:08 PM |
|
It is also of little value to know the addresses involved in a transaction. One can see that address A sent to address B, but who they are and the reason the transaction happened is unknown. The ledger is basically anonymous.
|
|
|
|
odolvlobo
Legendary
Offline
Activity: 4298
Merit: 3214
|
|
September 15, 2014, 04:10:19 PM |
|
The bitcoins that are on the exchnages are usually off the chain transactions ie you send the money and your account gets credited, but those coins will go somewhere else like a hot or cold wallet so you essentially just have an IOU.
That sounds like a recipe for disaster - what measures were put in place to avoid fraud? If any? That is to say - why did so many people feel comfortable trading with/within such an entity? Many people felt comfortable leaviing bitcoins in their Mt Gox accounts because they were unaware of all the troubles that Mt Gox was having. Anyway, the practice is common. For example, you don't really own any of the shares in your stock broker account. They are owned by the broker. It is also necessary. Exchanges could not function efficiently if trades went through the block chain.
|
Join an anti-signature campaign: Click ignore on the members of signature campaigns. PGP Fingerprint: 6B6BC26599EC24EF7E29A405EAF050539D0B2925 Signing address: 13GAVJo8YaAuenj6keiEykwxWUZ7jMoSLt
|
|
|
|