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PaperCoin - paper offline Bitcoin wallets

papercoin.org

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Re: PaperCoin - paper offline Bitcoin wallets

#32

Post by kzrdude »

vidyesh wrote: post #25
jimrandomh wrote: post #5

Using a Bitcoin address provided by a web site to store your coins is Extremely Unwise. You would be giving the owners of that site the power to steal your money later. Promoting a site which gives a small convenience in exchange for the power to steal your Bitcoins is not okay . Even if the site's original creators are trustworthy, it can be broken into and perverted. You risk creating a repeat of MyBitcoin (an "onl…

So you are saying even hybrid wallets like blockchain.info are unsafe?

Look at how bitcoin.org handles it, see the [?] boxes there: http://bitcoin.org/en/choose-your-wallet

Re: PaperCoin - paper offline Bitcoin wallets

#33

Post by watt »

stickac wrote: post #23
raimue wrote: post #22

Earlier quoted context omitted.

I am not a Bitcoin user and I also don't get it. Could anyone else please explain what this hash on the piece of paper is? Is this an address used to send Bitcoins to?

Sequence starting with "1" together with the QR code are the Bitcoin address where you can send Bitcoins to. Sequence starting with "5" inside of the wallet is the private key, which you use to redeem the funds sent to the address in the first step.

exactly HOW do you redeem the funds sent to address in the first step?

Re: PaperCoin - paper offline Bitcoin wallets

#34

Post by stickac »

watt wrote: post #33
stickac wrote: post #23

Earlier quoted context omitted.

Sequence starting with "1" together with the QR code are the Bitcoin address where you can send Bitcoins to. Sequence starting with "5" inside of the wallet is the private key, which you use to redeem the funds sent to the address in the first step.

exactly HOW do you redeem the funds sent to address in the first step?

For example Electrum client (electrum.org) allows you to import these keys. Or you can use MtGox Redeem code feature. I'm pretty sure other clients and web wallets have also this functionality.

Re: PaperCoin - paper offline Bitcoin wallets

#36

Post by sliverstorm »

Why would the receiving party trust that they are receiving the amount promised? The paper itself holds no value, and as clearly both the "buyer" and "seller" are privy to the wallet access code, the "buyer" could simply put 0 BTC in the wallet, or remove it at a later date.

Re: PaperCoin - paper offline Bitcoin wallets

#37

Post by wmf »

sliverstorm wrote: post #36

Why would the receiving party trust that they are receiving the amount promised? The paper itself holds no value, and as clearly both the "buyer" and "seller" are privy to the wallet access code, the "buyer" could simply put 0 BTC in the wallet, or remove it at a later date.

Given a public key you can look up the balance in the blockchain. Casascius has a cool system where the private key is hidden behind a tamper-evident hologram so you can be sure money hasn't been removed, but obviously that's not a DIY option.

Re: PaperCoin - paper offline Bitcoin wallets

#40

Post by sliverstorm »

wmf wrote: post #37
sliverstorm wrote: post #36

Why would the receiving party trust that they are receiving the amount promised? The paper itself holds no value, and as clearly both the "buyer" and "seller" are privy to the wallet access code, the "buyer" could simply put 0 BTC in the wallet, or remove it at a later date.

Given a public key you can look up the balance in the blockchain. Casascius has a cool system where the private key is hidden behind a tamper-evident hologram so you can be sure money hasn't been removed, but obviously that's not a DIY option.

Of course they can check at the point of sale, but times where paper money is most useful and times where you have immediate access to the blockchain do not exactly overlap. If they can check right then and there, might as well just do it electronically and skip the paper.

My point is basically that paper money is a store of value while these "paper bitcoins" are a proxy for a store of value, which introduces problems. It's almost like a fiat currency backed by bitcoin, except it has none of the governmental power used to make fiat currencies work.

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