At this point, we can write off Bitcoin as a failed experiment. It's worth thinking about how a different distributed digital currency might be made workable. A few problems which have to be solved:
There's an approach to mutual mistrust that might work. First, as with credit cards, there's a need for an "authorize" and a "capture" stage. In the "authorize" stage, A indicates that they intend to send value to B. This locks up the value from other use by A, and B receives a reliable confirmation that A has that value. In the "capture" stage, the value is actually transferred to B. A has to authorize the "capture".
That's the normal case. The hard cases might work as follows:
Discuss.
- Mutual mistrust between buyer and seller needs to be supported. This is the toughest problem. Right now, sending Bitcoins is not tied to receiving something in return, and is irrevocable.
- The double-spending check system has to be as least as fast as normal credit card processing. Waiting minutes for the block chain to update is unacceptable.
- Some price stability is needed. Value shouldn't change more than 1% per week, worst case. 1% per month would be better.
- A better way of launching the currency needs to be developed.
There's an approach to mutual mistrust that might work. First, as with credit cards, there's a need for an "authorize" and a "capture" stage. In the "authorize" stage, A indicates that they intend to send value to B. This locks up the value from other use by A, and B receives a reliable confirmation that A has that value. In the "capture" stage, the value is actually transferred to B. A has to authorize the "capture".
That's the normal case. The hard cases might work as follows:
- If A does an "authorize", and then does nothing, a "capture" automatically takes place after some number of days. So sellers don't have to nag buyers.
- If B cancels the capture, that's an agreed cancellation of the transaction, and the value becomes available to A again.
- If A does an "authorize" and later cancels before a "capture", the value becomes available to them again after some number of days. This is the tough case, and it puts B at risk of the buyer backing out after shipment of the product. To discourage backing out, when A does this, they are no longer anonymous to B, and B can publicize the cancellation, which affects A's reputation. Also, because cancellations aren't immediate, A's value is tied up for days, so they can't do this too often.
Discuss.
Don't bother. People are unwilling to consider fatal flaws in the system. This isn't a forum of logical, factually-interested intellectuals it is the Church of Bitcoin & Libertarianism. Either praise its name or be labeled an apostate.
If this is the case where would be a forum for logical factually interested intellcutals interested in discussing bitcoin?
