>> (p.1)
    Author Topic: Is using digital signatures to authorize off-chain transactions a good idea?  (Read 599 times)

    • ning (OP)
    Full Member
    ***
    Offline Offline

    Activity: 173
    Merit: 100



    View Profile
    February 20, 2014, 03:51:19 PM
     #1
    In the future, as for micro-transactions, transaction fees will probably be relatively more expensive than they are today. For on-chain transactions, digital signatures have been used to authorize transactions. And this method guarantees security and accountability.

    What about off-chain transactions? Can and should digital signatures be used to authorize off-chain transactions? Well, not sure. But, why not?

  • ning (OP)
    Full Member
    ***
    Offline Offline

    Activity: 173
    Merit: 100



    View Profile
    February 20, 2014, 03:52:27 PM
     #2
    Here's a simple scheme for employing digital signatures for off-line transactions:

    Mr. Goodman: trusted 3rd party
    Andy: an identity (not necessarily a person)
    Bree: an identity (not necessarily a person)

    [Scene 1: Opening up an account with Mr. Goodman]

    Andy: Hi, Mr. Goodman, I want to open up an account with you.
    Mr. Goodman: Choose a wallet address you like, and sign this <Random-String>
    Andy: Here you are: {<Wallet-Address>, <Signature-for-the-Random-String>}
    Mr. Goodman: Here is your deposit address <Deposit-Address> and you are all set!

    [Scene 2: Depositing]

    Andy: Hi, Mr. Goodman, I want to make a deposit.
    Mr. Goodman: Sure, just send fund to your deposit address.
    (Andy sends funds to his deposit address)
    (Mr. Goodman consults the Blockchain and confirms Andy's deposit)
    Mr. Goodman: Your account has been credited.

    [Scene 3: Withdrawing]

    Andy: Hi, Mr. Goodman, I want to make a withdrawal of 0.33 BTC.
    Mr. Goodman: Sure thing. You just need to sign this: {withdraw, {from, Andy}, {to, <External-Wallet-Address>}, {amount, 0.33 BTC}} and pay a miner fee of 0.0001 BTC.
    Andy: Done, and this is the signature <...>
    Mr. Goodman: (After verifying the signature) The fund is on its way.

    [Scene 4: Off-chain transferring (Finally!)]

    Andy: Hi, Mr. Goodman, I want to transfer 0.00007 BTC to Bree.
    Mr. Goodman: Sure thing. You just need to sign this: {transfer, {from, Andy}, {to, Bree}, {amount, 0.00007 BTC}} and pay a fee of 0.00000007 BTC.
    Andy: Done, and this is the signature <...>
    Mr. Goodman: (After verifying the signature) Done.

  • ning (OP)
    Full Member
    ***
    Offline Offline

    Activity: 173
    Merit: 100



    View Profile
    February 22, 2014, 09:59:22 AM
     #3
    [Scene 5: Closing an account]

    Andy: Hi, Mr. Goodman, I want to close my account registered with you.
    Mr. Goodman: Sure, please sign this {close_account, <Andy's-Wallet-Address>}
    Andy: Done, and this is the signature <...>
    Mr. Goodman: (After verifying the signature) You are all set.

    Bree: Hi, Mr. Goodman, I want to transfer 0.0003 BTC to Andy, and this is the signature <sig...> for {transfer, {from, Bree}, {to, Andy}, {amount, 0.0003 BTC}}.
    Mr. Goodman: Oh, I'm sorry, but Andy is no longer a customer with us, so this transaction cannot go through. You'd better make a on-chain transaction.
    Bree: OK, I'll call him later, then.
    Pages: [1]
      Print  
Page 1
Viewing Page: 1

IRLBTC™ © 2025 IRLBTC.com