Quote from: hypostatization on January 05, 2014, 07:51:45 PM

Quote from: Aerocoin on January 05, 2014, 07:38:17 PM

Quote from: hypostatization on January 05, 2014, 07:14:38 PM

Are there any protections against users creating multiple wallets and sending transactions back and forth between them in order to earn interest?

There are a few measures to protect against this scenario.

I appreciate the response.

Quote from: Aerocoin on January 05, 2014, 07:38:17 PM

The more transactions you make, in a real-world scenario the better the system is to recognize a legitimate transaction and award a higher %. There will be a Tier system, in which your account will be scored on. I believe the tiers go all the way up to 5.

Let's say, you and a friend want to make several transactions and collect interest for each other. So you send schoolteacher's balance back and forth to try to generate. Well, you will only collect interest on 1 transaction in a 72 hour period to X account.

In general:
You will not be able to collect interest on more than 3 transactions, totaling 10,000 Aero in a 24 hour period. You can make 1 transaction for 30,000 aero and collect a larger percent interest or several small transactions. None the less, the interest is insignificant.

This is for a tier 1 account (which i'll discuss later)

Are users able to create 4 accounts to use for daily full balance transfers in order to circumvent this protection?

Assuming an API is available, it seems this would be trivial to dodge the tax system and earn interest.

Quote from: Aerocoin on January 05, 2014, 07:38:17 PM

a Second countermeasure is where the transaction is coming from. We can screen for proxies and IP addresses, since this is an online built system (The easiest check)

Is this database and validation system distributed or centrally controlled?

How can users address false positives?

Quote from: Aerocoin on January 05, 2014, 07:38:17 PM

I believe there are about 8 other checks in order to gain an interest or Taxation. I've glimpsed at the code and it's intriguing.

This is a small sample of the countermeasures of the system. When we fully reveal interest and taxation, we hope most people will be very pleased on they way we proceed about it.

Listing all countermeasures as soon as possible, as well as their method of implementation, will be in this project's best long term interest. Until those are communicated and digested by the community, my biggest fear is that there may be a large conceptual flaw that makes it trivially easy to gain the system.

Quote from: Aerocoin on January 05, 2014, 07:38:17 PM

Let me clarify anything, keep asking questions if you have any.

Could you please provide example criteria for the different tiers?

1) No, each transaction is tracked. Assuming the full balance is sent. If X sends to Y an interest is gained for X. If Y tries to send to Z, No interest is gained until 3600 confirmations occur for Y. That could take up to 3 days. If Y then sends to Z after the confirmations Y gains an interest. If Z tries to send that initial balance from X to A. The confirmations is doubled. Now, this is assuming that the full balance is trying to be sent. It will gradually scale to the amount sent from each transaction, a low transaction will require less confirmations to generate an interest.

2) Distributed, Like the NXT client. Each user may login and confirm transactions to gain an interest. The interest gained from protecting the system via your wallet will generate you an interest.

3) Absolutely. Security has always been the major focus for Aero. We have built the system from scratch and are consistently adding new security measures. When in Alpha, we will get a greater understanding on where we stand with this. Without testing on a large base, there is no proof any measure works correctly or as intended.

4) I can't go into a full in-depth details, because this is beyond what i'm suppose to reveal.

Tiers are based on several factors. The major is account age and number of legitimate transactions (Getting Aeros to flow through the network)

Tier 1 - Is the default for every brand new account. And will generate minimal interest, with the highest taxation.

Tier 2 - After 90 Days occur and or 20 transactions occur, you will be bumped into tier 2.

and so on so forth. With every tier you are awarded account bonuses and will have more flexibility with your wallet.

Again i can't go into full details, I can only explain just what it is.