Quote from: Come-from-Beyond on May 12, 2016, 07:19:35 PM

Quote from: Nxtblg on May 12, 2016, 06:37:15 PM

Are you saying that any transaction with (say) Bitcoin that's not a cryptographically-sound circle jerk requires at least one outside trust-based input?

FWIW, I saw on a very old thread that the first iteration of Mt. Gox (when Jeb McCaleb owned it) accepted deposits from PayPal.

I'm saying that Bitcoin operates out of a Nash equilibrium. This shows that words of r0ach ("There is no Nash equilibrium in such a system, thus it has zero value.") is a nonsense. Or Bitcoin has zero value.

Okay. I'm not much for game theory - I know only the rudiments - but I do know enough rudiment to figure out that the first-ever Bitcoin transaction (10'000 BTC for a pizza) presented a classic prisoner's dilemma situation. A has to send the 10'000 BTC to B and B has to pay for a pizza and send it to A. Unless both A and B co-operate, there's no transaction.

In this case, there's one trust-based outside input required. B has to be trustworthy enough to both pay for and send the pizza. There's also a trust-based inside input required: A has to send over the 10'000 BTC. And of course, if [C,D] or [D,C] is the outcome then the Defector walks away with a freebie. It has to end in [C, C], else there's no transaction with Bitcoin as a medium of exchange.