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Paypal President: We're thinking about adding Bitcoin (2:50) [video]

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Re: Paypal President: We're thinking about adding Bitcoin (2:50) [video]

#121

Post by johnx123-up »

pjscott wrote: post #110
vlasta2 wrote: post #58

Earlier quoted context omitted.

One of the advantages of bitcoin is that you do not need a middle man to do a transaction. Some people may choose one for whatever reason, but would they be OK with paying the transaction fees? Would you use a credit card if you had to pay 4% more than if you paid in cash? I do not think many people would be OK with that. It may sound as if I am a PayPal lover and bitcoin hater, which is NOT the case. I just do not s…

Interestingly, Bitcoin does support transactions which have a third party acting as an arbitrator; these transaction require the consent of two out of three participants in order for the money to be transferred. PayPal is essentially a fraud detection business disguised as a money-transfer business, so this seems like a natural niche for them. (Technically, every Bitcoin transaction has a script in a Forth-like, non-…

> Interestingly, Bitcoin does support transactions which have

> a third party acting as an arbitrator

Can you please share some references? I'm looking to implement exact scenario, but couldn't find any references yet.

Re: Paypal President: We're thinking about adding Bitcoin (2:50) [video]

#122

Post by wfn »

johnx123-up wrote: post #121
pjscott wrote: post #110

Earlier quoted context omitted.

Interestingly, Bitcoin does support transactions which have a third party acting as an arbitrator; these transaction require the consent of two out of three participants in order for the money to be transferred. PayPal is essentially a fraud detection business disguised as a money-transfer business, so this seems like a natural niche for them. (Technically, every Bitcoin transaction has a script in a Forth-like, non-…

> Interestingly, Bitcoin does support transactions which have > a third party acting as an arbitrator Can you please share some references? I'm looking to implement exact scenario, but couldn't find any references yet.

As I take it, it's not really possible yet. In any case, we're talking about 'multi-signature transactions' [0]:

    A multi-signature transaction is one where a certain number of Bitcoins are "encumbered" with more than one recipient address. The subsequent transaction that spends these coins will require each party involved (or some subset, depending on the script), to see the proposed transaction and sign it with their private key. This necessarily requires collaboration between all parties -- to propose a distribution of encumbered funds, collect signatures from all necessary participants, and then broadcast the completed transaction. [0]
If you are using Blockchain's Mywallet, you might already be able to use them, as an end-user. [1]

One way to implement them is by allowing a more generic 'script execution per transaction' (not sure of wording) mechanism, proposed in BIPs 16 and 17. [2] [3]

Also see bitcoin.stackexchange question about multisig TXes. [4]

As I understand it, if you're a developer wanting to implement arbitrated bitcoin transactions, you'll have to wait. Correct me if I'm wrong though.

[0] https://en.bitcoin.it/wiki/BIP_0010

[1] https://blockchain.info/wallet/escrow

[2] https://en.bitcoin.it/wiki/BIP_0016

[3] https://en.bitcoin.it/wiki/BIP_0017

[4] http://bitcoin.stackexchange.com/questions/3718/what-are-mul...

Re: Paypal President: We're thinking about adding Bitcoin (2:50) [video]

#123

Post by abrkn »

axusgrad wrote: post #22

Paypal would do very well buying and selling Bitcoins. Buying bitcoins with Paypal is a very common request, which most sellers won't do because Paypal makes it very easy to rip off the seller.

Yes, this is a very common request: http://bitcoin-otc.com/viewratingdetail.php?nick=sturles

Re: Paypal President: We're thinking about adding Bitcoin (2:50) [video]

#124

Post by johnx123-up »

wfn wrote: post #122
johnx123-up wrote: post #121

Earlier quoted context omitted.

> Interestingly, Bitcoin does support transactions which have > a third party acting as an arbitrator Can you please share some references? I'm looking to implement exact scenario, but couldn't find any references yet.

As I take it, it's not really possible yet. In any case, we're talking about 'multi-signature transactions' [0]: A multi-signature transaction is one where a certain number of Bitcoins are "encumbered" with more than one recipient address. The subsequent transaction that spends these coins will require each party involved (or some subset, depending on the script), to see the proposed transaction and sign it with thei…

Thank you
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