- This topic has 30 replies, 2 voices, and was last updated 7 months, 2 weeks ago by Gandalf.
April 7, 2020 at 2:53 pm #473GandalfGuest
I have an idea about a cryptocurrency that will work in a time of crisis, but I couldn’t create a topic in this forum due to an error. Let’s see if this works.April 7, 2020 at 2:57 pm #474GandalfGuest
Very well then. Here it goes:
Is it viable to have a cryptocurrency that runs its private keys over barcodes? Think about it like an IRL hard key, but through actual goods. Instead of a blockchain you could run a peer-to-peer barter exchange. Much, much better use case compared to cryptocurrencies which are still not in practical use.April 9, 2020 at 11:50 am #480
Hi Gandalf, could you please expand upon this?April 9, 2020 at 6:38 pm #481GandalfGuest
Of course. As you already know and have demonstrated yourself, most encryption models operate with a public key and a private key. Now, instead of worrying about the quantum computers and prime factorization and the security of post-crypto communications, what if we simply assign the private key to a numerical value already present on any good we can find in every market? Or in other words, a barcode.
A barcode, is present on almost everything we can purchase. Those that come without a barcode, have a barcode on their invoice.April 9, 2020 at 6:39 pm #482GandalfGuest
1- A barcode is unique either to a product, or to a set of products within a store. The store may vary in size, from a supermarket to Amazon.
2- In contrast to blockchain where the transactions do not exist outside a digital plane, the barcode embedded on a physical product is similar to a Two-Factor Authorization. You can check the transaction both digitally and physically. This is what I meant by the IRL key.
3- The system is inherently Byzantine fault tolerant. There is no possibility of double-spending because it is a peer-to-peer system that matches a seller to a buyer. There is no need for miners to solve the Proof of Work, because there is no chain for each block to synchronize.April 9, 2020 at 6:47 pm #485
Which currency or exchange of value would be used? I want to understand how the property would actually become exchanged. Would there still be some form of common ledger between the two parties?April 9, 2020 at 6:49 pm #486GandalfGuest
There is no currency. It’s a barter system. Crypto acts as a measure of trust. I can’t post the rest of my messages because of errors. Hold on.April 9, 2020 at 6:50 pm #487
Which errors are you getting?April 9, 2020 at 6:52 pm #488GandalfGuest
ERROR: Your reply cannot be created at this time.
Whenever I type longer than 2-3 sentences, I get the above error.April 9, 2020 at 6:57 pm #489
Ah, okay. That was because of blacklisted words. I have removed it and it should work now.April 9, 2020 at 6:58 pm #490GandalfGuest
4- Blockchain is susceptible to attacks because it has no collateral other than the mining algorithm of its own.
5- The barcode based cryptocurrency can be mined on demand to facilitate a transaction. First, the collateral will be agreed upon between parties. Each party sends out two sets of public keys, along with two sets of private keys (barcodes). Upon receiving their goods, each party then enters the barcode on their goods to confirm the transaction.
6- There are two scenarios: a- where the buyer and seller meet IRL. In case a, the cryptocurrency functions as a marketplace for users to display their goods, enabling market making. Communications for bargaining and value-setting can be done over BeeChat, or IRL. Case b- where the crpytocurrency facilitates transactions over a long distance. This is the usecase where BeeChat and HAM shines and a high level of trust is required. The trust can be established by the facilitator, which is the logistics in between.
7- The trust can be a block that is generated when two sides confirm a transaction. The base logistics price, regardless of distance, is 1 block/walking distance/day. To bootstrap the system, the logistics price must be initially non-negotiable. However, the collateral for the block, such as resources to purchase fuel, or food for man-hour, can be negotiable.
8- Whenever a communication is established over BeeChat or HAM, the cryptocurrency announces the number of successful transactions of the broadcaster. Thus, it becomes a currency of trust, that is mined through confirmed transactions, for which the collateral are goods with barcodes.
9- Upon reaching a high level of trust, a “trustworthy partner” may act as a logistics hub, an escrow to hold the “trust coins” of each transactee in case one side tries to screw the other over, or a retailer that sells its stockpiles for “trust coins”.April 9, 2020 at 7:06 pm #491
I see, so it would be a true barter system. To put a simple example, I could exchange a table for another table which both parties agree to exchange. In a sense, then, BeeChat becomes the software for making contracts of exchange, whereby delivery is made by a third party. Is that correct?April 9, 2020 at 7:07 pm #492GandalfGuest
Possible attack vectors:
1- Drugs and money laundering – it’s very hard to use barcode crypto for nefarious purposes because these items can’t be barcoded. IRL transactions can be manipulated if both parties are crooked (broken package seals to hide drugs inside), but that’s almost impossible to track in any current system. It is possible to provide a static address that is still anonymous but enough to deter black markets.
2- Spam transactions. To generate more blocks, more and more rudimentary transactions between two parties can be spammed. This can be avoided by a simple algorithm that generates blocks for transactions between unique addresses.
3- Crooked vendors. Whenever a product is faulty or a vendor refuses to honor its obligations, the blocks that the vendor has can be sent to the buyer as the seizure of the collateral. The vendor loses trust and the trust points of the crooked vendor can be used for purchasing other goods.April 9, 2020 at 7:09 pm #493GandalfGuest
I see, so it would be a true barter system. To put a simple example, I could exchange a table for another table which both parties agree to exchange. In a sense, then, BeeChat becomes the software for making contracts of exchange, whereby delivery is made by a third party. Is that correct?
Yes, although it doesn’t necessarily have to include a third party. Only when distances get longer.April 9, 2020 at 7:19 pm #494GandalfGuest
One attack vector that I’m considering is the brute forcing of a private key by a vendor, who already possessed the other private key. This way, the vendor can claim to have completed the transaction without sending its product.
For this I’m thinking of an image recognition software or a barcode scanner that will upload the scanned barcode and no other method of confirmation will be accepted. Sort of like a crypto wallet.