PROTOCOL: Encrypted Open Books

[Timothy C. May]

>Date: Mon, 16 Aug 93 22:25:47 PDT
>To: cypherpunks at toad.com
>Subject: PROTOCOL: Encrypted Open Books
>From: hfinney at shell.portal.com
>Status: OR
>
>Eric had some good ideas in his protocol for verifying anonymous bank
>deposits.  One thing wasn't clear to me: what if the bank creates
>a fake account?
>
>It would seem that the bank could explain away a sudden decrease in its
>asset reserves (money that the bank officers actually spent on mistresses
>and drugs) by creating a fake anonymous account which made a large with-
>drawal.  The books would still balance.
>
>It wasn't clear to me in Eric's protocol whether it would be expected that
>the identity of accounts which made such withdrawals would be revealed.
>Doing so would seem to go against the purpose of the digital bank.  But
>without that ability it would seem that fake accounts could cover up any
>amount of mismanagement.
>
>Hal

Boycott "Big Brother Inside" software!
We got computers, we're tapping phone lines, we know that that ain't allowed.
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Timothy C. May              | Crypto Anarchy: encryption, digital money,
tcmay at got.net  408-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
Licensed Ontologist         | black markets, collapse of governments.
"National borders aren't even speed bumps on the information superhighway."