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Cryptocurrency won't work as a general use currency as long as this is possible and irreversible. So basically, it won't work.
by Hamuko 6y ago
Cryptocurrency won't work as a general use currency as long as this is possible and irreversible. So basically, it won't work.
- aeternum 6y agoI'm not convinced that is true. Tools can be written to validate amounts carefully. Wire-fraud is also relatively common and often not reversible but people and businesses still wire money frequently. Also happens with HFT: https://www.bbc.com/news/magazine-19214294 https://www.bbc.com/news/magazine-19214294
- google234123 6y agoA general use currency != HFT.
- crimsonalucard1 6y agoIt is reversible. If you make a mistake like this oftentimes you can rely on law enforcement/bank to force the money to be given back. Not sure if this is possible with crypto.
- rootsudo 6y agoIf anyone read, it was reversed at 50% the cost.
- Hamuko 6y agoIt wasn't reversed. The beneficiary just agreed to give half of it back.
- everfree 6y agoOften it's not reversible in practice, if the destination bank/jurisdiction is not cooperative. This is why you hear people losing their life savings to scammers in Nigeria, instead of just successfully suing them to get it back.
- crimsonalucard1 6y agoYeah but usually that's not the case. Usually you can get it back. I would say more often than not it's reversible.
- smachiz 6y ago> Can a Transfer Be Reversed After Being Accepted? Once a wire transfer has been accepted by the recipient's bank, there are only a few circumstances that allow for the reversal of the wire transfer under the Uniform Commercial Code. > The only available options for reversing a completed transfer are if the sending bank made a mistake, if the payment order was a duplicate of a previous order, or if the order is for an amount greater than the beneficiary was entitled to receive under the transfer. In those cases, the beneficiary's bank will recover the funds improperly paid to the beneficiary. https://budgeting.thenest.com/time-frame-reversing-wire-transfer-33881.html https://budgeting.thenest.com/time-frame-reversing-wire-tran...
- lucd 6y agohttps://etherscan.io/tx/0xca8f8c315c8b6c48cee0675677b786d1babe726773829a588efa500b71cbdb65 https://etherscan.io/tx/0xca8f8c315c8b6c48cee0675677b786d1ba...
- m3kw9 6y agoCan is a large word, you need to standardize it, which is what’s needed and it’s a long way to go.
- everfree 6y agoBank wires let you send money to the wrong place and are largely irreversible. The solution is for your bank to double check your transaction and refuse to send a wire with a typo'd destination. Likewise, the solution for crypto is for your wallet software to check your transaction and refuse to send it if it has an exorbitant transaction fee.
- toomuchtodo 6y agoI trust my bank and the legal framework more than wallet software and a loose band of SWEs running a blockchain or DLT. If funds are wired to the wrong person in your jurisdiction, you can sue to recover it if the sending and receiving institutions can't claw it back. With crypto, you're SOL. Technology doesn't fix trust and legal issues, and a judge is going to laugh an immutable ledger out of a courtroom (or hold you in contempt). https://www.youtube.com/watch?v=15RTC22Z2xI https://www.youtube.com/watch?v=15RTC22Z2xI [HBR: Blockchains Are a Bad Idea (James Mickens)]
- anamexis 6y agoWhy couldn't you sue to recover the crypto?
- toomuchtodo 6y agoLack of KYC (Know Your Customer [1]) and AML (Anti Money Laundering processes [2]) makes it more difficult to know who to pursue legally. Your US bank account or brokerage account is tied to your social security number and other PII. Who and where to process serve is much more accessible. [1] https://en.wikipedia.org/wiki/Know_your_customer https://en.wikipedia.org/wiki/Know_your_customer [2] https://en.wikipedia.org/wiki/Anti-money_laundering_software https://en.wikipedia.org/wiki/Anti-money_laundering_software
- camjohnson26 6y agoWhy would you send currency to an address if you haven’t verified its identity. The tools are young, if there aren’t enough controls for you yet then don’t use them. I don’t, but I respect the power of the technology and it’s future potential.
- nwsm 6y agoThis doesn't seem drastically different from your bank working with you to get back money you wired to the wrong account.
- Hamuko 6y agoIn what way?
- FalconSensei 6y agoIt wasn't a wire to the wrong account. In ETH, you set the fee yo are going to pay the miner for the transaction. Imagine this: you want to transfer $1000 to your your friend. You put your friend's correct account, $1000 as transaction fee, and $10 as transfer. Your friend receives $10, the miner receives $1000. Never going to happen with a bank, as you don't offer a transaction fee to someone.
- schoen 6y agoWell, you do offer a transaction fee to the bank (if you're in the U.S. where these transfers aren't free of charge), but presumably the bank has a fixed fee schedule for that and you don't specify a fee of your choice. A closer analogy might be a service where you can offer a tip by typing or writing a tip amount. In restaurants, if paying by credit card, you have to manually add the tip amount to the total in order to guard against mistakes in your intention (both through fraud and through your own error). Some online services like food delivery may let you specify an arbitrary tip just by typing it in, and I'm sure people make mistakes in the amount all the time (e.g. $44 instead of $4, or $80 instead of $8.00), though the web sites probably also have a limit on the tip value, so you'll usually only see mistakes of one order of magnitude rather than six.
- FalconSensei 6y agoThey are not free of charge, but it's not up to YOU to type in the value, right? At least in Canada and Brazil, the fee is set up/calculated by the bank, depending on the type of transaction and value. So you choose the transfer type, input value, and they tell you the fee. And it's NOT going to be $2 million (at least for $100 transfers)
- nix23 6y agoThe future of Crypto's are in free transactions, like IOTA and brothers.
- CyberDildonics 6y agoI have never seen anyone able to explain why IOTA isn't nonsense and a scam. They seem to claim that trinary encryption and trinary processors are going to be revolutionary for some reason. They have been claimed decentralization is coming since it was created, but there has never been an explanation for how that will even work.
- nytf3 6y agoIOTA is vaporware and gives all blockchain projects a bad reputation by association. You are right on your points and forget that they rolled their own elliptic curve so you cant use a wallet twice.
- nix23 6y agoComplete BS, of course you can use your wallet twice, but not the receiving seed, that's why you have to generate for each transaction a new seed. EDIT: In other words every seed could just be used for one transaction...but that has nothing todo with your wallet-seed EDIT2: And its not a elliptic-curve but a direct acyclic graph https://en.wikipedia.org/wiki/Directed_acyclic_graph https://en.wikipedia.org/wiki/Directed_acyclic_graph
- nytf3 6y agoelliptic curve is a type signing algorithm (like blake2b or sha). if you dont understand what an EC is i dont think you also understand why rolling your own would be a bad idea. the wallet/account seed (your post is semantics in my opinion, whichever seed it is you can only use once, which is a flaw) is directly related again to this issue.
- 6y ago
- gremlinsinc 6y agoIf you hand someone a million in cash. Then find out they gave you bad goods or an empty container, how do you get $$ back if they're long gone? want safety here? you'd probably use escrow or something. Not a bitcoin fan, more because of its fluctuating values, but this specific reasoning doesn't set itself apart from cash.