From: Hal <hfinney@shell.portal.com>
Date: Sat, 23 Jul 94 15:15:37 PDT
To: cypherpunks@toad.com
Subject: Re: Voice/Fax Checks
Message-ID: <199407232216.PAA03381@jobe.shell.portal.com>
MIME-Version: 1.0
Content-Type: text/plain


solman@MIT.EDU writes:

>On a more important note, I believe that in one of the papers on my to-read
>list for this weeked, Chaum demonstrates that e-cash can not be transferable
>unless it grows bigger. Otherwise you have to give it back to the bank and
>get a new one each time it is used. Given this, I think that it is highly
>desireable for us to accept the increasing size of the e-cash and maintain
>its transferability.

I had the impression from that paper that with transferred ecash, a person
earlier on the trail could always recognize the cash even at a later point.
This followed, Chaum claimed, from the need to detect double-spending.
I'd be interested to hear whether you get this from that paper as well.

In the real world, I'd guess that most cash is not transferred very much
before it goes back to the bank.  I get money from the ATM and spend it
at the grocery store, which takes it to the bank every day.  The smaller
bills may circulate a few times because they go back out as change, but
even there I'd guess there are not many transfers.  So there are two
possible lessons from this: one is that perhaps transferrable cash is not
very necessary; or the other is that it's not a significant problem if
cash grows somewhat each time it is transferred because it probably won't
get very big.

Hal