what the fuck is the purpose of a ""paper wallet""
>>101438792Offline payment, especially on the payer's side.
>>101438833but you'll need to check whats in the wallet with a phone or computer anyway?
>>101438792It's like a hardware wallet (as long as you generate the private key on an air gapped computer in a live session) except it doesn't cost $50-200. >>101438833>>101438866Cashu (a Bitcoin L3) can do true offline payments. Look into it Eddie-Bravo.png.
>>101438833but how does receiver know payer haven't copied the private key and is going to transfer the money away from the wallet as soon as he leaves?
>>101438953the receiver can send the funds to their own wallet immediately after receiving the paper
>>101438953you don'tsame way you dont know if you got paid with counterfeit moneyI don't know why you wouldn't do the transaction online and waiting till you have confirmations.
>>101438792it used to be a way to distribute your shitcoins as a form of advertisement
Fuckin kids these days.You generate a paper wallet on an airgapped PC for cold storage. You can view the wallet using the public key and no computer can ever access it until you input the private key. It's how you can store bitcoin in a safe.As soon as you spend from the paper wallet you trash it and make a new one. If you have 0.1 btc on the wallet and spend 0.01, send 0.09 minus the fee to a new paper wallet, and the 0.01 to its destination then throw out the old paper wallet.You verify that a paper wallet is valid before storing bitcoin on it by sending a small amount to it and checking the blockchain.You guys need to stop smoking the efferiums
>>101438953>>101438984Most credit and debit cards allow this for things like farmers markets. They can physically take down your card number, CVV, etc and just trust your shit won't bounce when they bill you later.
>>101439021does it really need the fancy money design? couldn't you just generate a ECDSA key and write it down on a napkin?or you know... use a real hardware wallet which is just as secure & more way sturdy than some paper?
>>101438914>true offline paymentsno such thing, you'll eventually have to get your transaction approved in the blockchain.
>>101439062>couldn't you just generate a ECDSA key and write it down on a napkin?yes i recommend hand writing your private key or a seed phrase (but understand types of seed phrases and how to restore using them). using a printer adds unnecessary vulnerability.yeah some people like hardware wallets, i don't see the point in them personally. they seem to serve a different purpose than long term cold storage
>>101439089Cashu doesn't use a blockchain you ignorant fuck.
>>101439180
>>101438792It's good if you don't have a hardware device.Anyone with significant holdings should be nervous about keeping their crypto on something that's online.Also, they can be used for promotionals in the sense that you can gift them to people.
>>101439180Then please explain how is able to make transactions using BTC without having to rely on the BTC blockchain.
>>101439503not him but i think the way these lightning network services or w/e they are called, work, is that you deposit your bitcoin into them and then they basically authorize payments made between you and anyone else signed up to the system.Eventually they do transfer the BTC back to people when they withdraw, but individual transactions dont have to go into the blockchain, so its lightweight and faster.Its essentially a credit card & a bank but all backed by bitcoin.
>>101439544>Its essentially a credit card & a bank but all backed by bitcoin.Doesn't that kind of defeat the purpose of Bitcoin?You're basically working with IOU's at the stage.>yeah dog, I promise I'll commit the latest state of our payment channel back to the chain
>>101439544doesn't it defeats the purpose of decentralized memecoin?
>>101438953apparently it's a way to move bitcoin to cols storage.
>>101439567>>101439563i guess the idea is you dont keep all your money in there in the first place, just deposit a fixed amount every month according to what you think you need for small purchases. Then you can have the same convenience you get with banks & credit cards, with crypto.
>>101439609i suppose you could also just sell a certain amount of your bitcoin every month and use a real credit card, so idk afterall what the point is of the lightning network... i just know how it works because i googled it once out of curiosity
>>101439544I guessed as much, so at one point you actualyl have to use the blockchain, either for getting or for depositing BTCs.I guess it's faster because for single transactions you don't have to rely on the slow ass BTC blockchain to transfer funds.
>>101439609>>101439620It should've (and could've) just been done on-chain.They crippled it deliberately to prevent it from becoming a competitor to banking.The excuse was that the network couldn't handle more than 1MB blocks (ironic, given that Youtube, Netflix, etc, are far more bandwidth heavy - and that's just at the consumer level).
>>101439563>You're basically working with IOU's at the stage.You're passing signed transactions back and forth. Either side can choose to publish the transaction at any time.
>>101439642>The excuse was that the network couldn't handle more than 1MB blocksNo, that's not how it works, the network can handle even 10 times that.It's not an excuse, it's how the BTC blockchain fundamentally work.Each block can only contain 1MB of informations (transaction data + hash) but each block is generated on average every 10 minutes.This is hard coded into the BTC algorithm and it cannot be circumvented without changing its algorithm (which will require every miner to update their software). The real reason behind this hard cap is currently unknown but it is speculated that it was made in order to limit how much the blockchain could increase in size over time.Think about it this way: since 2008 every 10 minutes 1MB is added to the blockchain, every miner who want to mine BTC need to access the whole blockchain in order to create new blocks. If the block was just 1MB more, nowadays the blockchain would have been twice in size (currently is 586GB).
>>101440348I was active in BTC development at the time (2015-2017).>This is hard coded into the BTC algorithm and it cannot be circumvented without changing its algorithmThis is literally a one liner in code. It was put in place after BTC's release to prevent spamming the chain. Satoshi's intent was to always increase it as needed. In 2017, it was obvious the increase was needed (and Segwit2x was meant to be the compromise).>nowadays the blockchain would have been twice in size (currently is 586GB).You do not need the entire blockchain to run a node or mine Bitcoin. You only need the UTXO set.Put simply, you cannot spend from an account that has no money in it.If someone tries to spend a coin that does not exist in the UTXO set, the transaction is invalid.Additionally, with UTXO commitments, you wouldn't even have to download the chain to run a node or mine.You could just download the UTXO set (which would be cryptographically proven to be of a set state).>The real reason behind this hard cap is currently unknownYou've been completely duped as to why BTC didn't scale. There were no technical merits for it. It was entirely political.
>>101438792Idk mine is made from leather, not paper.
>>101440522>There were no technical merits for it. It was entirely political.SegWit still succeded tho, because it was a soft fork.I guess SegWit2x being a hard fork was pissing people off.
