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20

RealSolid controls those accounts. He claims that he has selected several trusted people to operate them, but we have no way to know if this is true or not. There also seems to be a somewhat fundamental flaw in the reasoning. If we trust people because they have the most to lose, why should we trust people who have unspendable coins? Unspendable coins don't ...


14

Here's a list of the most notable scams, thefts, and hacks: https://bitcointalk.org/index.php?topic=83794


12

Any of those things can happen. Likely, there will be some "hot potato" going on as people rush to offload any IOUs they hold to people who haven't yet gotten the news. It's unlikely other gateways would honor the IOUs unless they were contractually obligated to. This would likely harm their customers as they'd have to make up the losses somehow -- likely ...


10

At the time of this writing, "Verified" Accounts are eligible for monthly/daily withdrawal limits up to 10 times the default daily amount and 5 times the default monthly amount, while "Trusted" Accounts are eligible for monthly/daily withdrawal limits up to 100 times the default daily amount and 50 times the default monthly amount. For verified status it is ...


10

Here all famous scammers/sites: List of Known Bitcoin Scams: Beware of Fraudsters! Bitcoin Scammers list


10

This question actually gets at the fundamental nature of Ripple. Ripple is essentially an online P2P implementation of free banking. Free banking is somewhat similar to how banking worked in the United States for much of the 19th Century (with a few major caveats) prior to the Federal Reserve and FDIC systems, and indeed back then banks would sometimes just ...


10

Is the safety of bitcoin dependent on the creator of it being a trustworthy person? No, the safety of Bitcoin is not at all dependent on the identity of its creator. The source code is public. The paper is public. Or would it be safe to use even if it turned out the creator's day job was working at the NSA? Again, the genesis of Bitcoin is unrelated ...


9

The v0.5 client (still experimental as of time of writing) supports a function where you can sign a text message with a private key. So you could: a) have a "register" button next to the address. b) provide the user a message to sign which includes some identifying information (account name, email address, etc) and the address. c) user will run bitcoind ...


9

Proof of work does not create trust. It creates incentive. Miners are paid if their block is eventually part of the main version of history ("blockchain") that the network accepts. They must irrecoverably burn electricity in order to create blocks, which costs them money; money they only get paid for if their block "wins". These factors together mean that ...


8

You can't get money on the Ripple network unless you trust someone to owe it to you. To have $100 in the Ripple network, someone must owe you that $100. If you haven't chosen to trust anyone to owe you money, nobody can owe you $100 and thus you can't have any money. So when you give money to a gateway, you must allow them to pay you in IOUs. And if someone ...


8

The majority needs to be trusted, but not weighted by their number of software instances, but by either computational power or economic power, depending on the context. The main technical assumption is that the majority of hashrate is not trying to attack the network. So an attacker would need to purchase and operate more hashrate than the rest of the ...


8

But then the next problem is transaction order and validity to prevent double spending. I don't understand completely why a timestamp can't just be included for every broadcasted transaction, and the transaction could have the correct, universally agreed upon time, and each ledger gets sorted chronologically. Is this because it requires a centralized system ...


7

wrt the suggestion that I put up a website with the name and address of the founder, this information has consistently been displayed on the home page since I put up the site. Agreed, there exists a theoretical possibility that I could scam and there is little anybody can do about that, even if my processes were to be audited, it's still impossible to know I ...


7

So far as I know, there's no conceivable attack model if you're going to use the block chain to seed the regular Bitcoin client. It won't accept an invalid block. And it understands that the "longest" block chain wins. So a compromised file that was longer than the official block chain cannot exist, and a compromised file that was shorter would just be ...


6

If you have a secure channel to the recipient or some way to identify communications as coming from the recipient, just have them send their Bitcoin address. If you have no such channel or method, it's obviously impossible. What can you do to prove your address is yours that I can't do to prove my address is yours?


6

A block is just an arbitrary grouping of transactions. It makes a convenient chunk of data for a proof-of-work to be performed on. You could hypothetically do the proof-of-work on the transactions themselves, and then chain them one after the other. This, however, would fail miserably. Blocks must reference the previous block, so if you just go by single ...


5

[Update: With the Bitcoin client v0.7, -loadblock= will allow the client to import blockchain data, securely, from a local blockchain archive rather than from the network. The blockchain download from BitcoinCharts.com can be used for this. Copy the blk*.dat from that download to a temporary directory and start Bitcoin-qt -loadblock=temp/blk0001.dat and ...


5

Giving the operator the power to control the identity of the recipient won't work, since he can participate himself and declare himself the winner. A majority vote also isn't too good because an attacker can make multiple entries, which is cheap to do if he knows he can guarantee a win. It is necessary that the winner will be decided according to public ...


5

From bitcointalk.org: triple-entry crowd accounting by casascius. I came up with the term TRIPLE ENTRY CROWD ACCOUNTING as a way to abstractly describe Bitcoin in as few words as possible. I wanted to solicit feedback. This term would make sense to those who are familiar with banking but not with technology. Slightly expanded (EDIT: and revised): ...


5

Bitcoin operates based on a set of rules known as the Bitcoin protocol, which is defined by a consensus among its users. The Bitcoin software is open source so anyone can contribute to its development, but in order for one to have any influence his modified software needs to be accepted by the users (so harmful code will be rejected). The Bitcoin currency ...


5

It doesn't differ. Gateways are just issuers that you somehow have more trust for, so much trust that their IOUs can basically be treated like cash. This is what happens in the current financial system, when you see $100 on your bank account it doesn't mean that you actually have $100. It just means that you hold your bank IOUs. From what I understand ...


5

Trust must be public because other people can use it. I agree, this can be awkward. I don't see community/private credit as a major use case for Ripple in the short term because of issues just like this. But I hope that in the future, and maybe even with changes in social conventions, this may change the way people think about money. Look at how ...


5

We start out with the exchange having two things. It has a set of Bitcoin addresses that it owns, each of which has some balance. It also has a set of accounts, each of which it owes some number of Bitcoin to. The objective is to prove that the exchange controls each Bitcoin address on that list and that the total of all account debts is less than the total ...


5

The short answer is that the "verification" done on every transaction by every node is preliminary and incomplete. It guarantees that the tx more-or-less makes sense, but it doesn't guarantee that the tx is in sync with the network and that it doesn't contradict other txs. Synchronizing the transactions to make sure there are no contradictions - in other ...


5

But then the next problem is transaction order and validity to prevent double spending. I don't understand completely why a timestamp can't just be included for every broadcasted transaction, and the transaction could have the correct, universally agreed upon time, and each ledger gets sorted chronologically. Is this because it requires a centralized system ...


5

Whoever made that example doesn't seem to understand how the lightning network works. I think the creator of this scenario is confusing how the lightning network functions with how traditional deferred net settlement functions. With the LN, you don't hold accounts with the people you have open channels with. Instead, you have money tied up in the channel ...


5

If most users are honest, then they would voluntarily enforce the prohibition to rewrite the blockchain. Without proof of work, this is just not possible. There would be no limit to the number of blocks that could be created at about the same time, there could be thousands of them created every minute. Different servers might receive them in different ...


4

there is no list of bitcoin trusted websites, but you can check some things to have a good idea of the trust you can give to a website : check the whois : anonymous whois ( domainsbyproxy or other ) : -1 recent website ( created 1 or 2 months ago ) : -1 old and known website : +1 check the bitcoinpolice website ( bitcoin.crimeunit.net/wiki/index.php ) ...


4

If you look at a graph of the value of 1 bitcoin, that huge spike and drop was caused by someone hacking Mt.Gox and selling everyone's bitcoins to him/her for $0.00, dropping down the value to $0, and it stayed low as more people sold their bitcoins to make sure it wouldn't happen to them. It's been slowly rising since then.


4

There is already three rating systems in existence from different trading platforms: #bitcoin-otc , Bitmit and Silk Road. Bitcoin users actively using their rated OTC identity to make their words more trustworthy. I believe integration of rating system into Bitcoin Network won't be beneficial and developers will not ever try to implement that. It is ...


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