Does Proof-of-Transaction have any potential for real useful application?
I mean, is the purpose of this algorithm just to be some kind of game where people send FLT to each other back and forth ?
whats stopping one individual from setting up several wallets and adresses and just send his own coins between them?
The way PoT is designed now seems to encourage this type of foul play
Of course it's useful. Just imagine merchants accepting payments in FLT and just by doing that, they get all their fees back as well as some extra coins on top. Now imagine you are a merchant that operates on a 5% profit margin and is paying 2% fees for credit cards. You can increase your profits by 40% for every buyer that chooses to pay you in FLT instead of CC. As a buyer you also get the chance to get some money back by hitting a PoT block when you make your purchase, so that is an extra incentive to choose FLT and not some other payment option.
As for gaming the system, it was already discussed and it's not possible to cheat as this disqualifies you from PoT. A lot of people have tried and so far nobody has succeeded.
PoT is nothing like a game to encourage people to send FLT to each other. It's designed as an economical stimulus for both buyers and sellers as well as an extra layer of block-chain security.I can see how it could be useful in theory, and one of the reasons i'm investigating more is that i'm considering adding FLT as a payment option to a ecommerce project im working on. Main problem is obviously the fact that average joe has no idea wtf FLT is and even less idea how to convert $ to FLT. Ideal scenario would be if customer can pay in $ and it gets converted FLT and sent to my wallet.. but in such a way so the customer doesn't have to leave my site.. basically, whats really needed is a payment gateway like the one bitpay offers, but for FLT.. or maybe it's possible to somehow use bitpay and auto-trade the coins for FLT, but i'm not sure if this process would be effective with PoT.. any ideas?
PoT is nothing like a game to encourage people to send FLT to each other. It's designed as an economical stimulus for both buyers and sellers as well as an extra layer of block-chain security.
I'm pretty sure i saw this kind of gaming going on here, maybe even in this thread actually.. Maybe the intention is not to encourage that behavior, but if it's possible and worth it then people will do it and I can't blame them, problem lies in it being possible in the first place. Though I have no clue if whatever they had going on was worth it.
Fluttercoin website has this in the PoT FAQ:
"In order to protect the integrity of the proof-of-transaction reward system, certain limits are in place. Only a limited number of tx's are considered, and within each tx, only a limited number of addresses are considered. This makes generated automated proof-of-transaction rewards nearly impossible without a great deal of luck."So there is no protection if someone just creates a new adress for each transaction ?
