> On Jun 20, 2015, at 11:45 PM, Jeff Garzik <jgar...@bitpay.com> wrote:
> On Sat, Jun 20, 2015 at 5:54 PM, Eric Lombrozo <elombr...@gmail.com 
> <mailto:elombr...@gmail.com>> wrote:
>  but we NEED to be applying some kind of pressure on the merchant end to 
> upgrade their stuff to be more resilient
> Can you be specific?  What precise technical steps would you have BitPay and 
> Coinbase do?  We upgrade our stuff to... what exactly?
> --
> Jeff Garzik
> Bitcoin core developer and open source evangelist
> BitPay, Inc.      https://bitpay.com/ <https://bitpay.com/>
Thanks for asking *the* question, Jeff. We often get caught up in these 
philosophical debates…but at the end of the day we need something concrete.

Even more important than the specific software you’re using is the security 

If you must accept zero confirmation transactions, there are a few concrete 
things you can do to reduce your exposure:

1) limit the transaction amounts for zero confirmation transactions - do not 
accept them for very high priced goods…especially if they require physical 
2) limit the total amount of unconfirmed revenue you’ll tolerate at any given 
moment - if the amount is exceeded, require confirmations.
3) give merchants of subscription services (i.e. servers, hosting, etc…) the 
ability to shut the user out if a double-spend is detected.
4) collect legal information on purchasers (or have the merchants collect this 
information) so you have someone to go after if they try to screw you
5) create a risk profile for users…and flag suspicious behavior (i.e. someone 
trying to purchase a bunch of stuff that totally doesn’t fit into their 
purchasing habits).
6) get insurance (although right now reasonably-priced insurance is probably 
pretty hard to obtain since statistics are generally of little use…we’re 
entering uncharted territory).
7) set up a warning system and a “panic” button so that if you start to see an 
attack you can immediately disable all zero confirmation transactions 
8) independently verify all inbound transactions and connect to multiple 
network nodes…check them against one another.

As for software tools to accomplish these things, we can talk about that 
offline :)

- Eric Lombrozo

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