28C3: Electronic money: The road to Bitcoin and a glimpse forward (en) [FG1dMIbrDtk]

For more information visit: To download the video visit: Playlist 28C3: Speaker: Peio Popov How the e-money systems can be made better The proposed talk provides a definition of the problem of creating e-money and after a review of the state of the art points out possible solutions and proposes questions for discussion for the properties of electronic money system. Electronic money: The road to Bitcoin and a glimpse ahead Abstract: The proposed talk provides a definition of the problem of creating e-money and after a review of the state of the art points out possible solutions and proposes questions for discussion for the properties of electronic money system. 1. What is electronic money and different means of currency Definition of electronic money and distinction from similar means of exchange. Electronic money is defined as monetary value which is: stored on an electronic device; issued on receipt of funds; and accepted as a means of payment by persons other than the issuer. Working e-money examples: PayPal and MoneyBookers Other means of exchange, similar to e-money: Alternative/Social/Timeshare/Community currencies; Loyalty and Voucher systems. Working examples: WIR and Ven currencies (Bitcoin) What makes them different from e-money? (convertible only one-way, not a legal tender, mostly backed by trust only, etc) Optional: Pros and cons of the abovementioned means of exchange. 2. Defining the e-money problem: What electronic money should do? Risks and requirements to the solution for electronic money from technical, legal and business standpoint. The basic human problem of reaching a consensus and trust in a group. General system risks: Credit Liability Credit Abuse Counterfeiting Unauthorized Withdrawal Purchase Order Modification Double Spending Failure to Credit Payment Denial of Service Repudiation Failure to deliver Framing Secrecy Legal and accounting: Dispute resolution Money laundering and finance of terrorism Tax evasion prevention Consumer protection requirements Ways to negotiate and conclude a contract Auditability Reverse and chargeback transactions How the burden of proof is distributed Business: Costs for: Registration Operation Support Marketing Customer and merchant negotiation Accent on the most important human problems: Identification and authorization (which is the required minimum?) Achieving consensus and easy dispute resolution in a group. Determine the state of the system at any given moment Trust (between the peer users or trust in the central authority) 3. How the risks and requirements have been traditionally addressed? Review of the cryptographic, legal and procedural methods from the existing e-money protocols. Еmphasis on anonymity and privacy problems. The review of the existing systems will be a distinction between: Online and offline systems Example: PayPal and Blind signature/PayWord based systems Centralized and decentralized systems Example: Liberty Reserve and Ripple/BitCoin Hard and Soft systems Example: BitCoin and Credit card based money and payment protocols How do they solve the problems of trust and consensus in a certain group? How they provide anonymous transactions and keep user privacy? Are independent jurisdictions a (contribution to) the solution? Calculated risk, insurance and responsibility/role delegation as patches to the existing problems. Which of the above systems may be deemed "legal"? (what do the central banks think) Optional: Few words for Blind signature and PayWord techniques and the protocols around them 4. The great step forward. The contribution of Bitcoin Emphasis on decentralization and (relative) anonymity features of Bitcoin. How the combination of a way to create(mint) coins and to timestamp the state of their distribtion created the first working non-centralised currency. What, in my opinion, contributed for the Bitcoin popularity. 5. The problems of Bitcoin What Bitcoin doesn't provide or doesn't provide in an effective manner: Cost of creating money Method of reaching a consensus, based on computing power No "real value" to back it Settlement risk not covered Scalability issues All the lacking features of a "soft" currency Is it decentralized or distributed system? (having in mind the introduction of "trust points") 6. A Glimpse forward How can anonymous e-money be made better (more effective and accessible). Proposal (and discussion) of the possible enchancements. How to issue e-money in more effective manner? #bitcoins kurs usd #erfahrungen bitcoin bank breaker #best crypto games #bitcoin mit paypal kaufen