On Thu, Jul 21, 2011 at 08:47:35AM -0700, Nathan Loofbourrow wrote: > It's only when money is transferred > into our out of the exchange that a "real" transaction needs to be created, > whether though Bitcoin or through a bank. Private markets can help aggregate > small transactions.
.. as well as help 'blind' these transactions to later log analysis (depending on what they do with their internal logs). > Of course, this presumes you trust the exchange, which is a different > matter. Indeed. Note, however, an interesting convergence property here, for the practical user: Say I'm selling something on 'bitbay'. Bitbay offers me two kinds of accounts: either immediate transactions to the bitcoin network, or an internal/affiliate 'Bitpal' account, with a running internal balance and aggregate external settlement transactions. I need to decide whether to trust the Bitpal exchange, both as a holder of credit and potentially also as a privacy-blinding service, presuming they claim to offer this value-add. Fine. However, in practice, both mean I need to wait some time for my money, even for the "immediate" transactions, until a sufficient consensus of conmation blocks comes in. So on the face of it, there's little difference in my process for deciding when to ship my paid-for product. The only way to make it go faster, where that matters, is to trust the exchange's internal accounts - that is the service they must offer. -- Dan.
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