Instant transactions without third parties by exchanging private keys

Anon136

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Quote from: Croesus on May 07, 2013, 09:07:50 AM

By the time you are trusting both parties, what is the point of using Bitcoin?

well you would only need to do it for transactions that you needed to be instant. So its not as if this would make regular bitcoin go away. Also you only need to trust third parties with a small amount of bitcoin at a time. And even still if everyone always used a service like this, bitcoin still has tons of other awesome properties that no other money has.

Croesus

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By the time you are trusting both parties, what is the point of using Bitcoin?

Anon136

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Quote from: tutkarz on May 07, 2013, 08:05:20 AM

only problem is that merchant doesn't know who also has private keys , which means he has to make transaction to his account anyway to be sure nobody will spend that money meantime.

they could be issued by a trusted third party. So i, the sender, would have a small wallet with this third party that i used for payments. I would specify the recipient and the third party would just sent the recipient the private keys. That way i would never have access to the private keys. The recipient would likely want to wipe all of such keys from time to time.

tutkarz

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only problem is that merchant doesn't know who also has private keys , which means he has to make transaction to his account anyway to be sure nobody will spend that money meantime.

Anon136

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Quote from: xyu on May 07, 2013, 07:07:00 AM

Well, maybe this idea is already proposed but what if we could make instant (as instans as the speed of light in optical cables) transactions by exchanging private keys.

The idea is to made transaction with a number of outputs each with some little amount of bitcoins, for example a 10 outputs with $10 worth of bitcons each. And wait for its confirmation.

Then when you want to buy something that costs, say, $22.5 you give the merchant 3 outputs with the corresponding private keys, merchant ensures that these outputs indeed have $30 worth of bitcoins and have 6 or more confirms and then merchant creates a transaction that deposits $22.5 to his address and $7.5 to yours as a change. You immediately can spot a scam if merchant doesn't issue a change transaction so in a face-to-face situations this might not be a problem. Simple and as instant as possible, no third parties, requires only some trust to the merchant, you can lower risks by making outputs with smaller amounts, like $1, $5 etc.

Thats what i do when i sell on localbitcoins. So i don't have to bring my computer.

xyu

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Well, maybe this idea is already proposed but what if we could make instant (as instans as the speed of light in optical cables) transactions by exchanging private keys.

The idea is to made transaction with a number of outputs each with some little amount of bitcoins, for example a 10 outputs with $10 worth of bitcons each. And wait for its confirmation.

Then when you want to buy something that costs, say, $22.5 you give the merchant 3 outputs with the corresponding private keys, merchant ensures that these outputs indeed have $30 worth of bitcoins and have 6 or more confirms and then merchant creates a transaction that deposits $22.5 to his address and $7.5 to yours as a change. You immediately can spot a scam if merchant doesn't issue a change transaction so in a face-to-face situations this might not be a problem. Simple and as instant as possible, no third parties, requires only some trust to the merchant, you can lower risks by making outputs with smaller amounts, like $1, $5 etc.

Topic: Instant transactions without third parties by exchanging private keys (Read 748 times)