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I think the article mentions this exactly, since buyer/seller kiting is trivial even on a blockchain: "There's nothing to stop me buying an NFT for 100ETH and
by kurthr 5y ago
I think the article mentions this exactly, since buyer/seller kiting is trivial even on a blockchain:
"There's nothing to stop me buying an NFT for 100ETH and the seller immediately returning that to me in cash."
- duskwuff 5y agoNot only is it trivial, but a number of smart contracts support "flash loans", allowing users to receive a temporary loan of a large amount of cryptocurrency so long as it can be proven that it will be paid back immediately through other contracts. They're a common tool in smart contract exploits.
- drdeca 5y agoTiny nitpick: aiui, it isn’t so much “if it can prove that it will pay it back immediately” so much as, if it doesn’t pay it back immediately, then all the changes in the transaction don’t end up actually happening, with the only consequence being that some gas fees were spent. So, it is as if the loan is retroactively revoked if it isn’t paid back within the same transaction.