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Bitcoin and Digital Cash: A Vision of the Future (zacharyvoase.com)
7 points by zacharyvoase 2108 days ago | hide | past | web | 4 comments | favorite

Here's your bank software, if you haven't already heard of it: https://github.com/FellowTraveler/Open-Transactions/wiki

Zachary, in the dual system proposal where bitcoin's decentralization is only leveraged for verifiable reserve audits, how does an 'identifiable' (and centralized) currency issuer based on Chaum's blinding protocols located in an 'identifiable' jurisdiction avoid government shutdown and asset confiscation?

1) Run the transaction server anonymously on i2p, earning a profit in Bitcoins. This way it cannot be shut down.

2) To prevent the server from stealing the Bitcoins, bail them into a voting pool instead of to a single server. (It is possible, using the Bitcoin script language, to require multiple signatures on the blockchain before coins can be transferred back out.)

3) To prevent the server from counterfeiting (inflation) it will be necessary for the other pool members to have access to the same audit data (the receipts) that a normal gold issuer would be expected to have.

4) To eliminate any privacy concerns vis-a-vis the other pool members, run the transaction server entirely in cash-only mode.

The system is woven of the fabric of the Internet, and an issuer is simply some Bitcoin addresses and a few cryptographic keys. This enables unprecedented jurisdictional arbitrage for both clients and issuers. Besides, banks don't need a physical address, or even a real-world identity. As long as the keys remain secure, it's possible to build a reputation based on just a public key.

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