Hopeful ZCE proposal in BCH provides groundbreaking potential for a new and unique path to greater prosperity for the “unbanked”.

I am reading the new Zero-Confirmation Escrow (ZCE) proposal.

If I am reading this correctly and it holds up to technical scrutiny, the implications for prosperity and health, particularly for the hundreds of millions of individuals who are “unbanked” and the struggling economies where they often reside, seem to be enormous.

I lack the technical chops to discern whether or not this work, particularly the fascinating game theory aspects that appear to have been worked through, is truly robust and implementable at global scale (a little help here please other sophisticated devs/academia?!) but if it is, you have engineered a solution that will allow any of us (very notably including the financially ‘least of these’ like millions of unbanked in a country as rich as the U.S. and hundreds of millions worldwide) a rapid, secure, ‘trust less’, reliable and very low-cost way to make and receive payments AND likely at a fraction of the energy cost of current legacy finance and fiat currency models. If the promise of DeFi fully materializes, it seems users will also eventually be able to earn passive income on unspent BCH assets they hold; a huge advantage to extant and often inaccessible legacy systems that typically compel them to risk more and spend relatively large percentages of their assets to make payments and transfers. But now, your apparently elegant and low friction solution could change all of that? If so: Holy cow! Amazing and bravo!

If more of the world is paying attention, the scrutiny and ink this receives should increase. I do see the capital gains treatment of cryptocurrencies as a potential barrier to practical use in some countries (e.g. the US) but this may be less of an issue for frankly poorer users for whom there are tax breaks/exclusions at more modest levels of gain. Too, if this moves forward it could provide political incentive and concomitant regulatory pressure to mitigate or remove this barrier.

I am hopeful and excited to see where this leads. In reflecting on Satoshi Nakamoto’s proposals and stated intent in the original white paper [https://bitcoin.org/bitcoin.pdf] or [http://satoshinakamoto.me/whitepaper/] of “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution… [and]…without relying on trust” I believe there would be hope and excitement there too. As they say: ‘Such wow! To the moon!’ ;)

submitted by /u/Phmd1
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