Quote from: spartacusrex on July 14, 2015, 12:54:12 PM

Hmm..

The Technical WIKI says you need to create a REFUNDABLE BTC deposit.. This is currently NOT possible with Bitcoin as you have TXN malleability issues.. ? They don't mention this in 'Threats and Mitigation' section.

Also - they say you need to use a FIAT payment processor that does not support chargebacks.. That's up to the BANKS isn't it ? I don't know of any fiat processor that does this. And if you need to use Kraken or another exchange, they WILL require KYC ?

And finally - in the example they use 100 steps to transfer $100 - $1 at a time.. the fees on that will be monstrous.. since the min fee will be a huge amount of the $1 transfers ?

Transferring 1BTC in 100 steps will incur 100 * fees. This is not a small amount.

I really hope they can get this to work, it's way cool, but currently, i don't see it.. Huh

<<The Technical WIKI says you need to create a REFUNDABLE BTC deposit.. This is currently NOT possible with Bitcoin as you have TXN malleability issues.. ? They don't mention this in 'Threats and Mitigation' section. >>

This is currently possible with Bitcoin. We are not using the same definition of "refundable deposit" as defined in the Bitcoin wiki.
The malleability issues might affect to exchanges in some cases but it doesn't affect to Coinffeine. Please read about the Coinffeine protocol, what is transaction malleability and how it can be exploited.
https://github.com/Coinffeine/coinffeine/wiki/Exchange-algorithm

<<Also - they say you need to use a FIAT payment processor that does not support chargebacks.. That's up to the BANKS isn't it ? I don't know of any fiat processor that does this. And if you need to use Kraken or another exchange, they WILL require KYC ?>>

All FIAT payments are reversible. We are using payment methods without a arbitration process. In the real life this means "a not reversible payment" and people are using Okpay and Paypal for buying large amount of bitcoins in LocalBitcoins for example.

https://localbitcoins.com/buy-bitcoins-online/usd/paypal/
https://localbitcoins.com/buy-bitcoins-online/usd/okpay/

Think about it.

PayPal invoices is an example of a payment method which is not valid for buying bitcoins, but there are other payment methods in paypal or many other payment processors we can use. By now we are using OkPay and we held meetings many payment processors to discuss about this point, including PayPal.

<<And finally - in the example they use 100 steps to transfer $100 - $1 at a time.. the fees on that will be monstrous.. since the min fee will be a huge amount of the $1 transfers ? >>

Buying 1BTC/100 in coinffeine has a total fee of 0% for the seller and 0.5% (okpay fees) for te buyer. Try to do the same operation in Coinbase and you will get 1% fee for the buyer and 1% fee for the seller.
So at this moment Coinffeine is 100% cheaper than Coinbase for bitcoin sellers and 50% cheaper for buyers.

This is because transferring 10 in many transactions of 2 has a fee of 0.5% for each 2, which is the same as 0.5% for the total amount.