Satoshi explains the difference between Bitcoin and Chaumiam cash.
Date: Thu, 12 Feb 2009 19:01:24 +0000 From: Satoshi Nakamoto <firstname.lastname@example.org> To: email@example.com Subject: Re: [p2p-research] Bitcoin open source implementation of P2P Martien van Steenbergen wrote: > Very interesting. Is this akin to David Chaum's anonymous digital money? > His concept makes sure money is anonymous unless it is compromised, i.e. > the same money spent more than once. As soon as it's compromised, the > ‘counterfeiter’ is immediately publicly exposed. It's similar in that it uses digital signatures for coins, but different in the approach to privacy and preventing double-spending. The recipient of a Bitcoin payment is able to check whether it is the first spend or not, and second-spends are not accepted. There isn't an off-line mode where double-spenders are caught and shamed after the fact, because that would require participants to have identities. To protect privacy, key pairs are used only once, with a new one for every transaction. The owner of a coin is just whoever has its private key. Of course, the biggest difference is the lack of a central server. That was the Achilles heel of Chaumian systems; when the central company shut down, so did the currency. > Also, in bitcoin, is there a limited supply of money (that must be > managed)? Or is money created exaclty at the moment of transaction? There is a limited supply of money. Circulation will be 21,000,000 coins. Transactions only transfer ownership. Thank you for your questions, Satoshi http://www.bitcoin.org _______________________________________________ p2presearch mailing list firstname.lastname@example.org http://listcultures.org/mailman/listinfo/p2presearch_listcultures.org