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> The bills are intended to be spent hand-to-hand in meatspace with cryptographic validation. See section 2.1 [1] When I accept a physical note, do bits move o
by zelly 7y ago
> The bills are intended to be spent hand-to-hand in meatspace with cryptographic validation. See section 2.1 [1]
When I accept a physical note, do bits move on the Ethereum blockchain? If not, how do I know that it's really mine?
This reminds me of when people sold Bitcoin private keys ("paper wallets") on eBay. I've heard some people do OTC trades by swapping private keys when they don't want the transaction recorded, but I assume these people know each other well. You save money on miner fees and gain some privacy, but you sacrifice trustlessness.
- paulgerhardt 7y agoNothing is moved on chain when the bills are transferred between parties. Token is stored in an escrow contract. The self-generated, non-extractable key stored on the note is the only key that can be used to claim funds out of that escrow contract when it matures. This is basically a smart-contract implementation of how promissory notes issued by goldsmiths (the predecessors to modern cash) worked in the 1600's. A big difference is that every note has its own contract. It's possibly more correct to say every bill owns itself and people transfer those bills. Section 3 of the whitepaper[1] expands on this. [1] https://ipfs.io/ipfs/QmRNRCocj4PwKMXrd1jeUGw7ASQSuEk7BDJu5KsGuWBXAX https://ipfs.io/ipfs/QmRNRCocj4PwKMXrd1jeUGw7ASQSuEk7BDJu5Ks...