Topic: Separating Bitcoin's Legitimate Business's - page 2. (Read 2950 times)

Istar - yes, can mitigate fraudulent claims based of transaction history/block history  this is one benefit bitcoin is the transparent ledger it has and we should take advantage of it.

Bip 16 could help because address's could be "assigned" just for transactions dealing with this.  Good idea.

I'm going to come up with a crude system now and present it shortly. Very crude but get the ball rolling on it as I have nothing else to do ...and want to do so something in the community here. Further suggestions , ideas or help would be great.

Claims of fraud can be mitigated pretty easily like istar said above. But I do like "forfeited bonds" that are sent back to the community as a whole and yes refunded if the bitcoin business decides to delist. Good ideas!

Should not things like this be possible thanks to the blockchain, if the business is open with what adresses it uses.
It does not have to reveal who of for what the adresses are used?

And making fake claims is not even possible, because you would have to prove that you did a certain transaction and proving
that is possible since a user can prove they own a sending adress by moving coins in and out of it.


Now with Bip 16 this business could create mirror adresses, owning only half of the acess to that adress.
The other half could be spread out to different persons.
 
The other key could be spread out to different persons.
Is there not also things like this that OT can solve?

I think it is an excellent idea too. Their could be a review site, where businesses post bonds with a well-trusted administrator. I don't think refunding users who get defrauded is practical. Too many false claims of fraud would occur. Instead, forfeited bonds could be donated to bitcoin development and development of the review site. Bonds could also be refunded if business decide to delist themselves before committing a fraud.

You would need a respected lawyer(or accountant, bank?) who will be paid to hold the money + publicly state the amount held.

That's a sure-fire way to have it done. It costs money ofcourse, but it solves the trust issue.

I'd say this is the answer.  At least for now, the people that most users on the forum would trust to perform this service probably do not want to be put into a position where they're acting as an insurance company/escrow service.

I think eventually (probably not for a few more years), we'll see the Bitcoin economy evolve into a system we're much more accustomed to.  There WILL be Bitcoin Banks.  A modern economy needs people that are able to act as creditors.  It also needs instantaneous transactions which banking provides.  If a few people established enough reputation to start a banking service, then those 'banks' would be able to move coins between accounts on their own systems instantly with no confirmation time required.  Additionally, if multiple individuals started banks in this manner and they were well trusted enough, eventually those banks would likely allow instant transfers between accounts at the different banks at a small fee.

It's a matter of people willing to step up and take this risk at some point.  Not just the security risk of securing a banking system, but the legal issues that arise from becoming an international banking operation for a currency with no borders.  Unfortunately, the legal side is the real problem currently blocking this evolution in bitcoin services.  It would take substantial investment to get it off the ground, at least in the US or EU.

Freemoney- thats exactly what I'm thinking. Basically, if I'm company ABC and I want to "gain some trust" I could put up 100 btc to make people feel comfortable and show I'm committed to it.  You bring up a good point - maybe, a group of trustworthy people who are on http://bitcoin-otc.com or here in the forum - a consortium of members ( spreads the trust out keeping the spirit of no central authority) could earn a little interest in exchange for their "trust" of holding the coins.  They trustee earns a little, the community gains a new business with some assurance and the business can operate under the assumption they are here for good.

edit: I would think this would reduce the # of scammy operation's we see that pop up from time to time.

edit 2: Btw: how does the bitcoin100 work - isn't there some "trust" in that ?

Escrow is a possibility good suggestion looking for something a little bit more robust and long-term.

I don't know yet ...still thinking that part out BUT I mean could even be you mod like yourself on here?

I don't think it's a bad idea, surprised at the negativity.

LoveBitcoins is not insurance but it is a commitment. I suppose really all it does is make it unlikely that the site will be a small scam, it could certainly be worth 100BTC to set up something large.

The insurance company would have to solve the trust issue itself, but some people here do already have some trust and selling/renting it doesn't seem bad at all.

For example I could probably start a store and enough people would be willing to trust me for a small amount that I could get reviews etc. But I don't want to start a store, so instead I talk on the phone with some guy, hear his plans, take a deposit from him and tell people that if they get screwed it's on me. Now he gets a faster start, people have more peace of mind and I make a little money.

Regarding Bitcoin eliminating the need for trust, I completely disagree. Bitcoin lets us have money without third party risk, but there is still the need to find trusted trading partners.

The rule No. #1 is: Trust no one.
So why would i trust some pre-defined "authority" ? This is like taking a time machine and going back to pre-bitcoin era.

We are the Bitcoiners, we trust the code. Middleman are now obsolete.

What's wrong with the escrow system many of us are accustomed to?

Who would you trust to hold the coins and verify claims?

I'm sure this idea has been played about before here but to lazy to search around on here but what if there was some sort of Bitcoin Business Insurance?  In other words, the bitcoin business front's a certain amount of bitcoins to insure he/she is serious about doing bitcoin business in this community. In other words, some new bitcoin company comes along and doesn't know how to "gain any trust"  ( looks overwhelming) can at least rest assure anyone he does business with that he has enough coins to compensate them for whatever happens. So it would be transparent - a certain amount of coins for the public to see against their business - if they decide the run and there are people effected by this people can issue claims and have funds released. I don't know just trying to see how we can introduce more trustworthy business to our ecosystem! 

obviously, by my handle here I'm interested in this stuff! haha