Published on: 2018-01-30T01:23:13+00:00
The email thread addresses two major concerns surrounding Bitcoin. The first concern revolves around the fear of losing Bitcoin due to a mistake while entering the recipient's address. To tackle this issue, the suggestion is to have the beneficiary's wallet generate a signed payment request instead of just an address. By doing so, the sender would not be able to generate a payment request for the merchant as they lack the merchant's key. Additionally, another proposed solution involves sending the transaction to the beneficiary through a private channel instead of broadcasting it. In this case, the beneficiary would refrain from broadcasting the transaction if they do not receive the expected payment or if the transaction was not properly constructed according to their preferences. This method also caters to deniable payments. The second concern raised is the desire for a 2-step confirmation system when engaging with unfamiliar individuals. To address this concern, the suggestion is to utilize an escrow system with or without an arbitrator. Without an arbitrator, the resolution of the transaction typically depends on time or revealing a known hash value. With an arbitrator, a secure model can be implemented where a compromised arbitrator is only able to revert transactions and not steal funds. Importantly, none of the proposed methods require any changes to the Bitcoin network or blockchain. Wallet developers have the ability to implement these approaches independently without needing to negotiate with Bitcoin developers.While Bitcoin addresses already have a checksum to minimize input errors, there is still a risk of malware replacing the intended address with one controlled by the malware author. Therefore, verifying the correct address remains a concern. The mention of "bitcoin multisig" and "bitcoin escrow" in a Google search highlights support for these concepts within the core Bitcoin protocol. The individual expressing their concerns suggests that for deals involving less than 100 Bitcoin, it is simpler to use a trusted single-party escrow rather than dealing with the complexities of "2 of 3 multisig". In conversations with non-Bitcoin users, two primary concerns often arise. Firstly, there is a fear of losing Bitcoin if an incorrect address is entered. Secondly, there is a desire for a two-step confirmation system when engaging with unknown parties. The proposed solution involves implementing a two-step system that acts as an escrow, allowing both parties to provide final approval within a specified timeframe. This system could potentially alleviate anxiety surrounding Bitcoin transactions. The author acknowledges that the current forum may not be the ideal platform for discussing these ideas but expresses gratitude for the reader's time.
Updated on: 2023-08-01T22:33:11.929457+00:00