At 11:14 AM 10/24/2005, cyphrpunk wrote:
Note that e-gold, which originally sold non-reversibility as a key benefit of the system, found that this feature attracted Ponzi schemes and fraudsters of all stripes, and eventually it was forced to reverse transactions and freeze accounts. It's not clear that any payment system which keeps information around to allow for potential reversibility can avoid eventually succumbing to pressure to reverse transactions.
I don't think E-gold ever held out its system as non-reversible with proper court order. All reverses I am aware happened either due to some technical problem with their system or an order from a court of competence in the matter at hand.
Only a Chaumian type system, whose technology makes reversibility fundamentally impossible, is guaranteed to allow for final clearing. And even then, it might just be that the operators themselves will be targeted for liability since they have engineered a system that makes it impossible to go after the fruits of criminal actions.
Its not clear at all that courts will find engineering a system for irreversibility is illegal or contributory if there was good justification for legal business purposes, which of course there are.
Steve
