[cryptography] bitcoin scalability to high transaction rates

James A. Donald jamesd at echeque.com
Wed Jul 20 00:22:31 EDT 2011


James A. Donald
 >> The obvious next step is to have chaumian money and
 >> account money which has rapid low cost transactions, which
 >> money is converted into bitcoins at leisure, analogous to
 >> having gold, and account money and banknotes backed by
 >> gold.

On 2011-07-20 3:25 AM, lodewijk andré de la porte wrote:
 > This would revive many of the things people have aspired to
 > kill with bitcoins. Among others the "creation" of money (I
 > can borrow and "store" more money than I have). It would
 > also mean moving the scalability problem to a centralized
 > system, a trusted party.

Not centralized if there are several entities issuing bitcoin
backed account money.  Nor is trust a big problem if value is
only stored in accounts and chaumian coins for a relatively
short period, with accounts being settled up in actual bitcoins
at the end of the day, or the end of the month.

 > In other words: wouldn't having money backed by bitcoins
 > instead of gold essentially improve nothing?

Right now we don't have money backed by gold.

If we did, it would improve a lot.

Bitcoins have an advantage over gold that they are inherently
electronically transferable, and disadvantage relative to gold
in that gold has been money for a very long time, and that gold
as non monetary value as well as monetary value.



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