Friday, June 16, 2017

Secure elements fix this problem

Moneyness blog posts about the definition of currency:
All of this still has relevance today. Take the case of private cryptocurrencies and CBDC, or central bank digital currencies. Because law makers have not been very clear about their legal status, bitcoin and other forms of crypto don't have currency, at least not in the Macleodian sense of the term. This means that a storekeeper who accepts bitcoin (or a future Fedcoin) may also be taking on the liability to give said coins back if they are proven to be stolen. And this lack of currency-status can only handicap a cyptocoin's ability to freely circulate. 
I thought of bitcoin as currency once as I thought it could be stolen,   I was wrong, they cannot be cleanly stolen as spending the stolen coins reveals the spender on the block chain.

If I have a secure element and use coins having the null ledger service, then I can be defrauded out of the cryptocoins and they can be truly stolen, here is no ledger service for them to appear.  I cannot counterfeit, at least not without a huge investment; so coins are still conserved. A standard S&L an issue coins with the null ledger service.

The secure element has a specific design goal, simulate paper cash transfers exactly.

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