0 sats \ 6 replies \ @freetx 9 Feb \ on: Bitcoin adoption using Ecash - use case scenario bitcoin
How are you going to protect yourself from getting frac-reserved? Its trivial for the mint to issue more ecash tokens to themselves and spend into the economy. Done correctly it would be very hard to detect this....
Why would you want to replace the whole use of Bitcoin using conventional wallets with using only ecash? Nobody is saying that. Please pay attention to what is presented in the guide.
getting frac-reserved?
you can't do fractional reserve with a mint.
The only risk is that the minter is deleting the mint or is shutting down the server.
But cannot create more tokens than sats he put in the mint.
As I said in the guide: this is not the ultimate way to use bitcoin.
Is just another way to onboard more people and accommodate them with sats.
Using ecash INVOLVE a certain level of trust in the parties, as I explained the use case: a small merchant using ecash as digital gift cards. That's all.
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you can't do fractional reserve with a mint.
No even @calle agrees that the biggest risk with ecash is being debased (not on the sats end, but by the mint printing extra tokens to give to themselves).
Lets talk in specifics: What exactly is a "eCash Mint"?
It is a python script that accepts LN and issues signatures....thats it. There is nothing stopping the python script from issuing 1.05x signatures for every sat that is received. That 5% extra issuance would be impossible for any users to detect.
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From your guide:
The banker cannot create more sats (fractional reserve) than he have in custody, but still can shut down the mint and users cannot redeem their sats anymore.
This is not true AFAIK, as @freetx agrees. Please fix the text in your guide @DarthCoin. Good to see you again!
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Bit refill?