Posted by
Steve Smith on
Dec 03, 2013; 6:30pm
URL: http://friam.383.s1.nabble.com/BitCoin-Smart-Card-tp7584417.html
With all the chatter here about BitCoin, I thought some might be
interested in this:
http://www.kickstarter.com/projects/1459210729/nio-card-a-smart-card-which-upgrades-your-phone-an
There is a LOT implied here and I didn't take the time to sort
through it all (in particular authentication/security/etc) but by
combining it with the Bluetooth "Tether" concept, "2G secure data
wallet", etc. It seems to make a lot of sense. There are open
questions regarding the possible *loss* if the card is lost or
destroyed... maybe it is "backed up" in other media (phone,
computer, cloud, etc.) but then some of the security of 2nd factor
"what you have" is forsaken.
A device like this (protected by conventional physical security you
give your wallet/cards/cash today) with BT connectivity to provide
"proximity warnings" (if you separate your wallet from your
smart-phone or dongles), and cloud/crowd "finding" features... and
the implicit 2-factor (what you have-card, what you know-PIN) nature
of the system (what you have x2 card+phone?) seems to be more
effective than most existing systems.
I didn't notice a password generator/keychain built into the system
but surely that is on it's way. The card could probably implement
(or may have) a synced clock for strong one-time use crypto.
On the question of whether BitCoin is a Currency or a Bubble... I
think it is both... the runaway pricing suggests (without a doubt?)
bubble, but as long as adoption increases (more cash going into
BitCoins and more places to use them), it is a winner. This device
(or others like it?) might make the difference... A fully
wireless/electronic/mostly?-secure electronic-debit system?
If/when KickStarter, IndieGoGo and most auspiciously Amazon accept
BitCoin as a currency, I think we'll see the bubble inflate some
more and the stock for these companies (are K and I even publicly
traded?) inflate along with it.
In the theory of "frictionless money", BitCoin might be about to
reduce the Newtons/Newton ratio significantly. I am sure someone
has done the analysis of the coefficient of friction of various
types of value-exchange. Obviously money in the form of precious
coinage reduced it quite a bit for relatively small transactions...
(a pocket-or-purse full of gold/silver) but at some point, the
*abstraction* of money out of physical objects (even paper notes)
dropped this ratio significantly. Credit companies and banks hold
the monopoly on the infrastructure for these transactions,
extracting "value" themselves along the way. BitCoin seems to be at
least open/transparent with the "transaction fees" going to the
people doing the work to manage the system (self-organized,
distributed BitCoin Minters) rather than to the arbitrary
monopolizers of the infrastructure.
I have more thoughts on this (as usual) but will stop here.
- Steve
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