Post
Topic
Board Economics
Re: Transactions Withholding Attack
by
AnonyMint
on 17/11/2013, 10:15:40 UTC
If the cartel records your spends offchain, then you can spend them again onchain to non-cartel merchants. The Bitcoin money supply would be in effect doubled, tripled, quadrupled, depending how many separate cartels do this.

I'm not sure you understand off-chain transactions.  

Lets interperate your sentence using what we have today:

1) I have bitcoins on MtGox.
2) I spend these bitcoins by sending them to another MtGox user or to MtGox themselves.  Lets say to buy a MtGox T-Shirt.  This transaction is recorded centrally on their systems.
3) I now send these bitcoins again (wat), but now using the blockchain.  I send them to Bitstamp.

How?

You can't because #1 was recorded onchain, not offchain.