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If I understand correctly it exchanges some btc to dollars in order to pay the merchant. But this relies on 0-conf transactions, right?
by r-marques 11y ago
If I understand correctly it exchanges some btc to dollars in order to pay the merchant. But this relies on 0-conf transactions, right?
- maxerickson 11y agoCoinbase is likely clearing the transactions internally. They have control over the coins in the wallet (I just went and checked, they call their multi sig product something else), so they don't need to trust the user.
- corndoge 11y agoProbably Shift verifies that the correct key on the blockchain (ie correct coinbase user) holds the correct amount of bitcoin, then fronts the USD and does the bitcoin transfer on the back end. Edit: downvotes don't tell me why I'm wrong, would appreciate counterexample, I don't see any docs on the Shift site, and there's no way in hell they're using zeroconf transactions at this scale, which means instant payments must come out of a USD account somewhere
- r-marques 11y agoso how does this relates to bitcoin?
- jacobr1 11y agoIt relies on you having a BTC wallet with coinbase - where coinbase controls the private key.
- r-marques 11y agoSo with coinbase you have no control over your private key? You can only spend your btc through coinbase?
- r-marques 11y agoIf this actually relies on 0-conf transactions and assuming that you have control over your private key in coinbase, I wonder how replace-by-fee can impact this.