Author: Lawrence Nahum 2014-06-16 16:30:45
Published on: 2014-06-16T16:30:45+00:00
Mike Hearn commented on a patch that was suggested to solve double spend issues. While the patch may help with some types of double spends, it wouldn't be able to solve all. The patch has potential security vulnerabilities and could provide a false sense of security. Lawrence's BIP is intended to act as a backup in case the native double spending protections in Bitcoin are not strong enough. It reintroduces centralised trust as an option for service providers and payment processors. However, it is not aimed at individual merchants but more so at users who don't know each other in local traders' environments. Payment processors like Bitpay and Coinbase will most likely deal with this complexity. If native Bitcoin doesn't work well enough for smaller unknown online shops, the market will most likely converge to a handful of payment processing companies. The beauty of Bitcoin is that it provides transparency and tools to build such things without huge barriers to entry, but it doesn't solve every problem.
Updated on: 2023-06-09T00:03:58.728441+00:00