Quote from: TheQuin on May 24, 2018, 12:44:13 PM

Quote from: Moonbrand on May 24, 2018, 12:26:21 PM

Perhaps we have both misunderstood, but this is what my understanding is after having read through both the article as well as the whitepaper.

The use of the word 'notes' is what is causing your misunderstanding. Replace 'notes' with 'cheap disposable hardware wallets' and it might make more sense. There's still a blockchain transaction needed to fund the device and another one needed to spend from the device. You wouldn't want to hand over your Ledger Nano S to someone else to spend the coin stored on it because it is too expensive but that is the same principle. These are just cheap enough to pass around if you want. Or if you want to think of it in the same way as the physical Bitcoins although they have really become collectables rather than useful to spend.

Ok. I understand now.

With that understanding though, I refer back to my point of fraud. What, then would stop someone from selling the wallet to 3 different people where only one will be able to use it?