Hello everyone,

I have updated the whitepaper at http://www.othercoin.com/OtherCoin.pdf to reflect the most recent changes in the protocol and application. I've decided to get rid of the centralized balance certification and use SPV proofs (as suggested in this thread). It's not fully implemented yet, but it shouldn't take very long now. Each device will simply download block headers, then at the time an OtherCoin key is funded, the payer waits for the transaction to be included in a block, then fetches the Merkle branch that links the transaction into the block and uses the serialized transaction + Merkle branch + block hash as a proof that the transaction really exists. Since each participant downloads his/her own blockchain headers, the payer cannot feed it fake blocks.

I've also detailed the PIN-based escrow mechanism that is built into the system and listed the hardware that we've tested it on and the hardware we expect it to work on.

Finally, I've submitted the app to the Coinbase Hackathon (I'm not sure if it will be accepted - their Terms and Conditions do not rule out older apps, but their submission page says the app should be "new" (as in created after April 7th - and OtherCoin obviously isn't) ). If they abide by the T&Cs, they should accept it, but we'll see.

BTW, here's the demo video I've created for the Hackathon: https://www.wevideo.com/view/395666124 . Enjoy and wish me luck!