Author: Jannis Froese 2014-04-24 17:13:08
Published on: 2014-04-24T17:13:08+00:00
In this context, Mike Hearn raises a concern about double-spending fraudulent activities in payment networks. He questions the possibility of a customer buying a phone on contract and paying an artificially lower price than the actual cost of the phone on the assumption of future revenue. The customer could then double-spend by paying double the lower price and saving money while the seller ends up in debt. However, Hearn suggests that nearly all payment systems have the same issue of needing to enforce contracts out-of-band. He states that the scenario described is no worse than a payment network with instant, secure confirmations since Alice could just as easily refuse to make the second payment. The message includes a PGP signature for security purposes.
Updated on: 2023-06-08T21:11:45.052144+00:00