Author: eric at voskuil.org 2021-07-10 01:49:37
Published on: 2021-07-10T01:49:37+00:00
In a discussion about proof-of-reserves, it is suggested that this concept would work for a "pure" warehousing service where users pay a fee and the service keeps their money while providing proofs that the money is being kept. However, typical exchanges do not function in this way as they take on risk by dealing with non-Bitcoin monopoly money. This is evident from the explicit fees charged by these exchanges which are lower than what they would have been if they were pure warehouses. It is further argued that Bitcoin users can be their own warehouse and employ Green-like multisig schemes where they own their own keys that are part of the scheme. This provides an alternative to hiring a "pure warehouse" or Safe Deposit.
Updated on: 2023-06-15T00:11:20.017064+00:00