One of Bank's Services in Future Will be Keeping Private Keys for Customers

nara1892

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Quote from: MicroGuy on January 21, 2017, 09:08:34 AM

Because keeping private keys (by yourself) is troublesome, one of bank's services in the future will be keeping private keys for customers. They won't need to create their own currencies if they can convert enough of the population over using this system.

The customer visits bank and is provided a "bank account" which is a managed address on the bitcoin blockchain. The customer can still have personal addresses, but this address will be secured and guaranteed by the bank and have attached banking services.

I agree that a few people cannot take care their own private keys, but trusting banks to save copy of your private keys is terrible. you know, when banks save your fiat, they lend it to the other people and get interest. I think they would do the same thing. and that's against bitcoin rules.

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Quote from: MicroGuy on January 21, 2017, 07:00:22 PM

Quote from: Pettuh4 on January 21, 2017, 05:42:30 PM

Quote from: MicroGuy on January 21, 2017, 09:08:34 AM

Because keeping private keys (by yourself) is troublesome, one of bank's services in the future will be keeping private keys for customers. They won't need to create their own currencies if they can convert enough of the population over using this system.

The customer visits bank and is provided a "bank account" which is a managed address on the bitcoin blockchain. The customer can still have personal addresses, but this address will be secured and guaranteed by the bank and have attached banking services.

That defeats the purpose of decentralization to start with and even if practiced it will eliminate the ability to access your money 24/7 which is the case with having access to your own private keys. I will like to add however that if your inability to keep the private keys safely led to this suggestion then it's better you have them saved on a Harddrive and lock the drive with a password and keep it in your personal safe or wardrobe.

There will still be publicly available addresses, it's just that the bank addresses will have private keys under bank control.

There are some indicators that these new banks are already in the works: http://www.coindesk.com/occ-charter-bitcoin-exchanges-special-national-bank-status/

hmmmmm.... So, it's not linking to the another public address?

But it makes sense if re-writing the title for this thread. It's including on the bank service and I can say if it is a bundling service was offering by the bank. and it's too far from the relationship with the public address.

jakelyson

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That is like giving away your control over your bitcoin. I do not like the idea of giving my private keys to someone I do not know, especially the bank. If I cannot have the discipline to keep my private keys safe myself, then maybe bitcoin is not right for me. Maybe I should just stick to fiat and let the bank handle my finances.

MicroGuy

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Quote from: Pettuh4 on January 21, 2017, 05:42:30 PM

Quote from: MicroGuy on January 21, 2017, 09:08:34 AM

Because keeping private keys (by yourself) is troublesome, one of bank's services in the future will be keeping private keys for customers. They won't need to create their own currencies if they can convert enough of the population over using this system.

The customer visits bank and is provided a "bank account" which is a managed address on the bitcoin blockchain. The customer can still have personal addresses, but this address will be secured and guaranteed by the bank and have attached banking services.

That defeats the purpose of decentralization to start with and even if practiced it will eliminate the ability to access your money 24/7 which is the case with having access to your own private keys. I will like to add however that if your inability to keep the private keys safely led to this suggestion then it's better you have them saved on a Harddrive and lock the drive with a password and keep it in your personal safe or wardrobe.

There will still be publicly available addresses, it's just that the bank addresses will have private keys under bank control.

There are some indicators that these new banks are already in the works: http://www.coindesk.com/occ-charter-bitcoin-exchanges-special-national-bank-status/

Pettuh4

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Quote from: MicroGuy on January 21, 2017, 09:08:34 AM

Because keeping private keys (by yourself) is troublesome, one of bank's services in the future will be keeping private keys for customers. They won't need to create their own currencies if they can convert enough of the population over using this system.

The customer visits bank and is provided a "bank account" which is a managed address on the bitcoin blockchain. The customer can still have personal addresses, but this address will be secured and guaranteed by the bank and have attached banking services.

That defeats the purpose of decentralization to start with and even if practiced it will eliminate the ability to access your money 24/7 which is the case with having access to your own private keys. I will like to add however that if your inability to keep the private keys safely led to this suggestion then it's better you have them saved on a Harddrive and lock the drive with a password and keep it in your personal safe or wardrobe.

unamis76

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This thread reminds me of that one a while ago asking if we'd create a Bitcoin account in our bank if we could... lol. Giving them our private keys would be exactly like what we have now: we give them our fiat money... Ridiculous. Hope people are smart enough not to fall for this in the future.

severaldetails

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I do not think that would work.
Most of the people who know how to get a private key would not give it to a bank.
In fact, avoiding banks is often the reason why they went into bitcoin.
So I hardly doubt that this business model would be profitable for a bank.

RodeoX

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I think you are totally correct. I would guess that they will also offer financial instruments that allow zero confirmation transactions and insured deposit.

franky1

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Quote from: coolcoinz on January 21, 2017, 10:23:31 AM

Quote from: SONG GEET on January 21, 2017, 10:05:14 AM

Banks already have safe deposit box where anyone can put anything valuable that may also include bitcoin paper wallet. Its better not to tell them your bitcoin address, they may report it to government and they may charge you in the name of tax.

An address is not enough to prove an ownership. You could show an address in the bank and then say it doesn't belong to you. How would they prove it? Wink

You'd need a private key, and showing the key to anyone is like giving them your money. If someone gained access just for a few seconds and managed to take a picture of it, or swipe it in front of a camera, your money's gone.

you dont show the private key..!!

you sign a unique message and pass them the signature to show proof

coolcoinz

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Quote from: SONG GEET on January 21, 2017, 10:05:14 AM

Banks already have safe deposit box where anyone can put anything valuable that may also include bitcoin paper wallet. Its better not to tell them your bitcoin address, they may report it to government and they may charge you in the name of tax.

An address is not enough to prove an ownership. You could show an address in the bank and then say it doesn't belong to you. How would they prove it? Wink

You'd need a private key, and showing the key to anyone is like giving them your money. If someone gained access just for a few seconds and managed to take a picture of it, or swipe it in front of a camera, your money's gone.

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Quote from: SONG GEET on January 21, 2017, 10:05:14 AM

Banks already have safe deposit box where anyone can put anything valuable that may also include bitcoin paper wallet. Its better not to tell them your bitcoin address, they may report it to government and they may charge you in the name of tax.

There are banks undertaken by governments in which it is not needed to reveal whats been placed into the safety boxes. So there is no need of a panic that Governments will go through our Private keys and track for taxation purposes.

franky1

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Quote from: Karpeles on January 21, 2017, 10:14:11 AM

but bitcoiners are too paranoid to share their private keys with banks, no matter how safe they are

... says "karpeles" lol

who the real karpeles has hundreds of thousands of coins of people that stupidly handed them over to him

Karpeles

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Quote from: SONG GEET on January 21, 2017, 10:05:14 AM

Banks already have safe deposit box where anyone can put anything valuable that may also include bitcoin paper wallet. Its better not to tell them your bitcoin address, they may report it to government and they may charge you in the name of tax.

but safes are expensive(unless you are a whale) and overkill if you want only to safe a string of text.

maybe mini faults than can store a sheet of paper, or some kind of cryptographic solution that would be more secure than the ones available in market would be a better idea

but bitcoiners are too paranoid to share their private keys with banks, no matter how safe they are

SONG GEET

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Banks already have safe deposit box where anyone can put anything valuable that may also include bitcoin paper wallet. Its better not to tell them your bitcoin address, they may report it to government and they may charge you in the name of tax.

Slark

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Op, what you just described is very definition of what bitcoin shouldn't become. Basically you want to 'sell' to banks current open decentralized borderless permisionless network.
I agree that keeping fiat might be troublesome, but bitcoin? With all methods we can safely store it? I don't think so.

Watch this, the very essence of banking system agenda, a very scary explanation: https://www.youtube.com/watch?v=2B_SxGmSJP0

franky1

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Quote from: OmegaStarScream on January 21, 2017, 09:29:13 AM

What's the difference between what you just mentioned and people using a cryptocurrency that's made by the banking system and governments ? It wouldn't make any difference as you are not the one controlling. It also wouldn't make sense , banking system wants to control users and while having your private keys stored on the bank , you could have a copy at your home etc... It simply not gonna work as It won't be possible for them to freez , limit your account etc..

by banks having full control of funds they end up storing it in cold store reserves and only offering database mysql balances to customers to pla around with (like exchanges like coinbase have now)

by using LN commercial hubs. the hub has code that can even after settlements(onchain withdrawal) get confirmation, prevent funds for being spent (CLTV maturity) for hours/days .. and then while maturing allow chargebacks (CSV revokes).
yep LN is trying to emulate banking services (and banking headaches)

yep LN becomes like a bank. which is where people compare it to a paypal2.0. blockstream want paypal2.0

Kprawn

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In the future Brick n Mortar banks will not exist anymore, and most Banking services will be done online. I already make use of safety deposit boxes

as a redundancy storage for some of my private keys. They will not know it, because I hid the private keys in plain sight, but you need to decipher

something to get to it, and they will not know what that it. {My family know the secret, if something happens to me} Grin

talkbitcoin

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Quote from: MicroGuy on January 21, 2017, 09:08:34 AM

Because keeping private keys (by yourself) is troublesome, one of bank's services in the future will be keeping private keys for customers. They won't need to create their own currencies if they can convert enough of the population over using this system.

The customer visits bank and is provided a "bank account" which is a managed address on the bitcoin blockchain. The customer can still have personal addresses, but this address will be secured and guaranteed by the bank and have attached banking services.

i don't agree with this because first of all, keeping private keys by yourself is one of the main purposes of bitcoin! to be your own bank without any central place to rely on! so if you want to keep private keys at banks then just keep fiat in banks, why bother (and we are talking about future, and price won't be as volatile now)

also keeping private keys safe on your own is easy as cake.
either pay for hardware wallet and keep safe, or other many cold storage methods for advanced users.

p.s. making a bitcoin bank account like what coinbase does and customers don't have private keys is different from holding private keys.

OmegaStarScream

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What's the difference between what you just mentioned and people using a cryptocurrency that's made by the banking system and governments ? It wouldn't make any difference as you are not the one controlling. It also wouldn't make sense , banking system wants to control users and while having your private keys stored on the bank , you could have a copy at your home etc... It simply not gonna work as It won't be possible for them to freez , limit your account etc..

Xester

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Quote from: MicroGuy on January 21, 2017, 09:08:34 AM

Because keeping private keys (by yourself) is troublesome, one of bank's services in the future will be keeping private keys for customers. They won't need to create their own currencies if they can convert enough of the population over using this system.

The customer visits bank and is provided a "bank account" which is a managed address on the bitcoin blockchain. The customer can still have personal addresses, but this address will be secured and guaranteed by the bank and have attached banking services.

That will be the exact thing to happen if bitcoin will become the futures legal tender. But it will not happen, fiat currency is turning digital as of this moment big meetings and discussion are being made as to how the banks can integrate blockchain technology into the financial and banking system. Like I always mention China will take the first step in introducing fiat digital currency to the world as they will replace Chinese Yuan and turn into a cashless society.

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