Re: [Taler] The illicit use case (A)

[fabian . kirsch]

> That is not quite correct. Sharing can be finalized, by spending the

You're right.

> Well, in the current design of refreshing, we assume that losses of
> 2/3rds are unacceptable. If they are, we'd have to raise the security
> parameter kappa.

and have a role model in which the mint is trusted by the state.

I suggest the state should skim most of the mint's profits from failed 
coin refreshs.

Spending has to be lightweight and fast. But
is there a reason, that refreshing has to be fast?

Could we declare:
  SA = Key from state authority

  customer: commitment = S_C'(E,B,T_p, timestamp)
  state: prefix = Hash(string with results from the national lottery 
draw following the commitment)
  state: announce = S_SA( prefix )
  customer and mint: gamma = Lowerbits( Hash( prefix, commitment ))

Refreshing would be delayed by a working day.
Auditors can look for backdated commits.

So the mint and customer derive the gamma from official announcements.


For the level of protection against illicit use:
Please correct me if i'm wrong.
The goal of taler is to be accepted by the state as a legal payment 
method.
They come from "Know your customer" and detailed records of wire 
transfers, SWIFT, Visa, Mastercard.
They don't care if taler is more decentralized, less resource-hungry, 
more efficient, faster, ...

But taler's coin spending is by design diametral to "know your 
customer".
In order to get taler accepted while keeping the desired anonymous 
spending,
we have to absolutely care for tax-evasion (TE) and money laundering 
(ML).

TE and ML have to be less convenient in taler than with existing means.
And this "less convenient" has to be plausible to the state.

As long as the state gives no banking license to the mint the merchant 
is not allowed to accept wire transfers from the mint for services to 
third parties (the customer).

Paypal, paysafe, ukash, they all needed to acquire a license.
lieferheld.de (order local pizza, sushi, curry, etc. in one platform) 
had to learn this the hard way.