Quote:
Originally Posted by PairTheBoard
Sounds fishy to me. What's the enforcement mechanism? What prevents reneging? What prevents the loser from refusing to settle out? How does this facilitate buying coffee at Starbucks? It sounds like you need a bank to keep a ledger of floating promissory notes and enforce settlements. In other words, you're back to the same system we have now.
PairTheBoard
If I open a 1 bitcoin channel with you by timelocking my bitcoin, I can then digitally sign an otherwise unforgeable transaction that sends .001 bitcoin to your address. Then I can send you the signed transaction.
You can either post it and collect the .001 and end the transfering or you can wait and then I can sign a new transaction that sends .002.
If you claim the second one, the first transaction becomes nullified. If you claim the first one the second becomes nullified.
I can keep incrementing, and I cannot stop you from posting the most recent incremented transaction to the blockchain to claim the highest amount that I have "promised".
If you die and never claim the transactions, a clause in my timelocked bitcoin allows me to refund it after a certain time (That time is set to after our agree upon period that gives you reasonable time to claim your proceeds without me being able to refund).