Hawala is an old indian/middle east , money transaction system , based on mutual trust, and uses an encryption system based on spoken keycodes.How is it similar to bitcoin transaction system?


The major difference is, while Hawala means trust, Bitcoin does not depend on trust. Everything is made of cryptographical signatures, making it 100%** safe, while Hawala cannot / may not be trusted.

** Two exceptions: 1) Majority of hashrate is attacking the network. See this 2) The theoretically possible, but practically impossible hash collisions. It doesn't happens, while the theoretical safety isn't 100%, rather 99.999999999...%

  • 100% safe !what do you mean? Its a very well known fact that un hackable software/programs never exist, how do you say Bitcoin is protected then? – Quantumkiller Sep 18 '17 at 15:20
  • If there are multiple node implementations and if none of them has 50% of the network, as they're implemented by different developers, there won't be a bug that affects all of them and even if the a node software crashes, the other nodes will stay work and network will stay safe. – MCCCS Sep 18 '17 at 15:23
  • And the private keys can be cracked if some people manage to build a 1500 qubit quantum computer in far future. @Quantumkiller – MCCCS Sep 18 '17 at 15:25
  • great ,thanks @MCCCS i heard 1000 qubit computers are on the cards! – Quantumkiller Sep 19 '17 at 2:18
  • @Quantumkiller Last paragraph: bitcoin.stackexchange.com/a/57977/38618 I also heard that the 1000 qubit quantum computer exist now, but do you know why they work on both the 50 qubits one and the 1000 qubits one at the same time? I heard that the 1000 qubit one is a special qcomputer that can do only a few things. Even if the qcomputers are able to break ECDSA (private key- address system) your money is safe as long as you avoid address reuse (if RIPEMD is still not cracked). More info here: en.bitcoin.it/wiki/Quantum_computing_and_Bitcoin – MCCCS Sep 19 '17 at 4:15

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