Why The Bitcoin Greenlist is Structurally Dangerous to the Bitcoin Ecosystem 15 November 2013 | By Vitalik Buterin | Bitcoinmagazine Several days ago three Bitcoin businessmen based in New York, Alex Waters, Yifu Guo and Matt Mellon, came out with an announcement that has made waves in the Bitcoin community. Their new business, Coin Validation, seeks to create a more regulator-friendly Bitcoin ecosystem by maintaining a Bitcoin “greenlist” – a database of Bitcoin addresses tied to established identities, which any user or business can join by signing up with Coin Validation, going through their identity verification procedures, and integrating their API. A more precise name for what the company is doing would actually be “address validation”; the intent is to allow businesses to deliberately use “green” addresses to make trackable payments that are tied to their physical identities. Some businesses may then choose to only accept payments from green addresses, thereby proving to regulators that they are not accepting Bitcoin funds from unknown and potentially problematic sources. This scheme, the project’s founders hope, will be adopted by Bitcoin businesses and embraced by US government regulators as a quick path to helping Bitcoin businesses in the United States remain compliant with the law. READ MORE November 17, 2013 at 02:30AM ift.tt/I7XnXP
Posted on: Sun, 17 Nov 2013 01:34:09 +0000
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