-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 On 02/22/2015 07:50 AM, Matt Whitlock wrote: > This happened to one of the merchants at the Bitcoin 2013 > conference in San Jose. They sold some T-shirts and accepted > zero-confirmation transactions. The transactions depended on other > unconfirmed transactions, which never confirmed, so this merchant > never got their money. > > I keep telling people not to accept transactions with zero > confirmations, but no one listens.
A better solution is to track the failure rate of zero confirmation transactions, and adjust prices accordingly to cover the expected loss. This is what every merchant *already does* since no payment method has a 0% fraud rate. Even physical cash has a probability of being counterfeit, and the prices you pay for things at a convenience store already have that risk priced in. The idea that zero confirmation transactions require a 100% guarantee is a strawman, especially since there exists no number of confirmations the actually produce a 100% irreversibility guarantee. Zero confirmation transactions can work as long as the risk of reversal is measurable and reasonably stable. -----BEGIN PGP SIGNATURE----- iQIcBAEBAgAGBQJU6f0FAAoJECpf2nDq2eYjWJsP/3I6b9KL2tr7wEGUyiUJvn95 wR/DQw3jRoC6rP1OqZAHpePksboEtd1yTxhtnH9UEMzvzFrGeQwKaSgM0s6zbIIm 38BXH6uiTzxI2PUWxv8HDNsPvwAlj0l4EkV9E8DthK9MTDVAk5E/SFUlwgc4tdYB QinntAYknjIJd7dKVXlIaBrXg0UmTaXDKq9yoQIBTl9SE8xYbbRM154XAjVmqVrZ h88ZGkaIbpHbBEjbUpqVpPIKM/Ts4b6NwLSfloY7W+Mmvgn3p6EB4V6rt3HuV/wN L5A0RPbAESGsg0MpRcIprpAq4aiO6Qt0p6wMrZ9x6a+cx1w/RuJx7Sb3zflDjBgk FmEwqIKJJqWoTEtR2nCEkmDvwx48RJQQppEHJgdUCmxjELpJMKkvtz9Oc4CRP0ty 6JUnBmxNTHRJLL+0nn1sq5WAhTLIQaH3RcVn/SjNk2zjoUXUdx+1pIEyBaZnOckW e54SraX0KEEZNpTXHA3xJV0d2gA068CChG/TFqMO9uhohWz9jz6NZl7jFLwdBjgb Wmbid/V/bl6W/ehCiOwLDM/sOer/BDoZPqGt/j2cJZO9gP+wVdiRkojl3f97vd9k qhGV3QUsc8uiseZNxeIv2hty34KzUPz2ISPM25ZnQMavIevg3Yg0l4O7Hwnk49oK 1nhyoqk+scfLpo7vd6Ke =fVAx -----END PGP SIGNATURE-----
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