Author: Natanael 2014-05-18 13:50:08
Published on: 2014-05-18T13:50:08+00:00
The discussion is about creating paper currency that represents bitcoins. The proposal is for a reloadable, NFC-based system where anyone can verify notes instantly by touching them with their phone. Merchants could redeem the notes at the moment of acceptance, convert them into fully online bitcoins, and avoid the costs of maintaining paper money turnover. However, one problem they couldn't figure out is how to protect the notes from unauthorized redemption. They are considering using Trusted Platform Modules (TPMs), which are like smart cards that won't leak their keys but let the holder spend the coins. TPMs could also use attestation features to prove that the software is unmodified to the current holder. However, it is still necessary to trust the manufacturer of the device and ensure it has no exploitable side channels. It is also noted that other cryptocurrencies such as Othercoin may have better properties in the space of offline transactions.
Updated on: 2023-06-08T22:52:47.886682+00:00