bank is a four letter word
Very Interesting Info. Post+1
Topic: Bitcoin Central Bank - page 2. (Read 2015 times)
Very Interesting Info. Post+1
bank is a four letter word
a central bank for a decentralized currency? sounds funny
Independent trusted counter-parties will develop over time but the whole point of Bitcoin is not to completely centralize. It is counter-productive. We want lots of small independent operators that can work with each other while still remain independent. I hope you realize why Bitcoin is so popular now. People want an alternative, not more of the same.
It doesn't mean it looses centralization. Centralization is a natural behaviour in anything that grows, Bitcoin itself fave birth to lot of those
Mining: Mining Pools
Exchange bank : MtGox
Payment Processing: BitPay
Community: bitcointalk forum
Exchange Rating system: #bitcoin-otc
Like like everything else, theres need for organization.
Maybe I should used another word instead of Central.
I mean, Bitcoin Banks are a necessary evil. And needs Organization/s that should control bank legally speaking. Their authority is strong as people believe in it. If the organization gets corrupted, then nobody believes in it and a new Organization should take place. Just like #bitcoin-otc feedback system. Its a centralized system to feedback people and know who to trust, it basically control everyone reputation, is it centralized?
Thats why it would be great if more Mt. Gox come around and be regulated by a Central Authority
MtGox is the central authority, why add anotherone on top to regulate it?Now you only need to trust MtGox, when you add another authority, you need to trust them both.
Wait, what?
There is no need for reputation, trust or anything of the sort.
If you don't do *very* big transactions, two confirmations is plenty. For really small ones, even one should be enough.
Why the hell would you go and turn something as ingenious as Bitcoin into a copy of the fiat system? I think you got something very wrong in your mind.
There is no need for reputation, trust or anything of the sort.
If you don't do *very* big transactions, two confirmations is plenty. For really small ones, even one should be enough.
Why the hell would you go and turn something as ingenious as Bitcoin into a copy of the fiat system? I think you got something very wrong in your mind.
Maybe youre not seeing the whole picture here. If something like is not done, Bitcoin will be just a bubble, like it is now. It wont be able to access the real world (street stores, supermarket, drugstores, cafes, whatever you like). The transaction delay is too much, even 10 minutes for 1 confirmation, is a lot of time. Transfer must be instant for purchases on the go.
Mt. Gox would be Bitcoin bank with currency exchange feature. We trust it because.... I don't know... They are the biggest?
Thats why it would be great if more Mt. Gox come around and be regulated by a Central Authority with a reserve in USD or whatever the likethat claims that that bank is trustfull and so is "green address", it can have reputation like bitcoin-otc or something like that.
I'm trying to make this work in my country, and go to stores to make them accept bitcoin, but theres no chance they'll make their claim just sit there waiting for the transaction to be confirmed. Am I the only one that thinks 10min for a confirmaction is a lot of TIME?!?!?!
The reason central banks exist is to allow fractional reserve banking to "work", with the "beneficial" side-effect of giving governments great "control" over their respective economies.
The words in quotes above are applied very loosely indeed. FRB works only because central banks can prevent bank runs by printing money (robbing savers and taxpayers). A billion words have been written about how government control of an economy tends to wreck it, rather than help it.
Bitcoin OTOH has an inelastic monetary base, making FRB honest and CBs powerless. Capitalism and living standards, freedom and personal wealth can only thrive without the cancers of riskless FRB and CBs.
For the specific problem of instant confirms companies could act as intermediaries for account holders they know and verify, charging a fee which covers the odd case when a customer defaults by double-spending with a merchant. On-line, instant confirms are not so necessary as shipping can wait.
The words in quotes above are applied very loosely indeed. FRB works only because central banks can prevent bank runs by printing money (robbing savers and taxpayers). A billion words have been written about how government control of an economy tends to wreck it, rather than help it.
Bitcoin OTOH has an inelastic monetary base, making FRB honest and CBs powerless. Capitalism and living standards, freedom and personal wealth can only thrive without the cancers of riskless FRB and CBs.
For the specific problem of instant confirms companies could act as intermediaries for account holders they know and verify, charging a fee which covers the odd case when a customer defaults by double-spending with a merchant. On-line, instant confirms are not so necessary as shipping can wait.
Independent trusted counter-parties will develop over time but the whole point of Bitcoin is not to completely centralize. It is counter-productive. We want lots of small independent operators that can work with each other while still remain independent. I hope you realize why Bitcoin is so popular now. People want an alternative, not more of the same.
Wait, what?
There is no need for reputation, trust or anything of the sort.
If you don't do *very* big transactions, two confirmations is plenty. For really small ones, even one should be enough.
Why the hell would you go and turn something as ingenious as Bitcoin into a copy of the fiat system? I think you got something very wrong in your mind.
There is no need for reputation, trust or anything of the sort.
If you don't do *very* big transactions, two confirmations is plenty. For really small ones, even one should be enough.
Why the hell would you go and turn something as ingenious as Bitcoin into a copy of the fiat system? I think you got something very wrong in your mind.
But to store your bitcoins with someone else means you are trusting that they are competent enough to hold your coins securely, and that they are not dishonest in which they run off with the funds.
What could possibly go wrong? I hope its clear enough,
Its clear. You are describing Mt. Gox.
Account-to-account transfers (bitcoin payments from one account to a merchant or other account who also uses Mt. Gox) are instantaneous.
Other "banks" who don't even have accounts at Mt. Gox might accept payments from Mt. Gox account holders instantly using "green address" (because they trust Mt. Gox won't do a double spend).
But to store your bitcoins with someone else means you are trusting that they are competent enough to hold your coins securely, and that they are not dishonest in which they run off with the funds.
I searched in the forum and found nothing about a Bitcoin Central Bank idea like.
Maybe Bank is not the right word, actually what I mean is a centra authority to regulate Banks.
And what I mean for Bitcoin Banks is an Organization that works to keep people's Bitcoins safe and enable fast-secure transaction.
I come up for this idea as the 6 confirmation required and 1 hours min delay for transactions is totally ridiculous and impossible to implement in the local marketplace for anything you buy.
As I said, maybe this has been discussed before but havent found it.
It would act for reputation between banks, and a central authority to regulate banks.
When I have my wallet in a Bitcoin bank, and want to pay in a store, This store can have the wallet in the same bank or even another bank.
So when I do the transaction, the transaction is created by a trusted bank, who own the private keys of the BTC, so theres no way the user can Double Spend the coins. It'll work just like any other wire transfer or credit card payment nowadays. As the bank trusts the Credit Card to make the payment.
The transaction is created when theres money between two different banks and can be made simultaneously, but the user dont have to wait for confirmation, as the banks have trust between each other.
Transactions between two users from same bank don't even need a BTC transaction to be made, as the whole BTC of the Bank can be stored in the same address. The total user coins can be stored in a secure database with your actual BTC amount. The transaction just have to subtract the amount from the sender and add it to the receiver. Just like any other BANK in the world, they are just numbers in a database.
I hope its clear enough, sorry for my poor english.
Maybe Bank is not the right word, actually what I mean is a centra authority to regulate Banks.
And what I mean for Bitcoin Banks is an Organization that works to keep people's Bitcoins safe and enable fast-secure transaction.
I come up for this idea as the 6 confirmation required and 1 hours min delay for transactions is totally ridiculous and impossible to implement in the local marketplace for anything you buy.
As I said, maybe this has been discussed before but havent found it.
It would act for reputation between banks, and a central authority to regulate banks.
When I have my wallet in a Bitcoin bank, and want to pay in a store, This store can have the wallet in the same bank or even another bank.
So when I do the transaction, the transaction is created by a trusted bank, who own the private keys of the BTC, so theres no way the user can Double Spend the coins. It'll work just like any other wire transfer or credit card payment nowadays. As the bank trusts the Credit Card to make the payment.
The transaction is created when theres money between two different banks and can be made simultaneously, but the user dont have to wait for confirmation, as the banks have trust between each other.
Transactions between two users from same bank don't even need a BTC transaction to be made, as the whole BTC of the Bank can be stored in the same address. The total user coins can be stored in a secure database with your actual BTC amount. The transaction just have to subtract the amount from the sender and add it to the receiver. Just like any other BANK in the world, they are just numbers in a database.
I hope its clear enough, sorry for my poor english.
Jump to: