[HN Gopher] GNU Taler - Payment system for privacy-friendly, fas...
       ___________________________________________________________________
        
       GNU Taler - Payment system for privacy-friendly, fast, easy online
       transactions
        
       Author : 2pEXgD0fZ5cF
       Score  : 287 points
       Date   : 2021-02-25 09:51 UTC (13 hours ago)
        
 (HTM) web link (taler.net)
 (TXT) w3m dump (taler.net)
        
       | dbrgn wrote:
       | Here are the core principles behind Taler:
       | https://taler.net/en/principles.html
       | 
       | Note: Taler is not a cryptocurrency. It's an electronic payment
       | system.
        
         | wrycoder wrote:
         | And the IRS should treat transactions like they do gift cards
         | or pre-funded debit cards.
         | 
         | While the IRS treats bitcoin transactions like security
         | transactions - they are taxed on gain/loss of the bitcoins
         | involved.
        
       | wheybags wrote:
       | So are there any real world instances running? Can we actually
       | use this today? If not, is there a roadmap for opening one?
        
       | aarchi wrote:
       | Great name. The word "Taler" derives from the "Joachimsthaler
       | Guldengroschen" currency (Guilder groschen of St. Joachin's
       | Valley), or "Thaler" for short. The coin was introduced in 1518
       | in the Holy Roman Empire and many currencies in Europe became
       | named after the Thaler. The Dutch brought their "leeuwendaler"
       | (lit. lion daler) coin to New Netherlands (now New York), lending
       | its name to the US Dollar. I presume Taler was used for this
       | project to match modern German orthography and to avoid confusion
       | with the English 'th' <th> sound.
       | 
       | https://en.wikipedia.org/wiki/Dollar#History
       | 
       | https://en.wikipedia.org/wiki/J%C3%A1chymov
        
         | 1f60c wrote:
         | > The Dutch brought their "leeuwendaler" (lit. lion daler) coin
         | to New Netherlands (now New York), lending its name to the US
         | Dollar.
         | 
         | I had to say "daler" a couple times fast before the penny
         | dropped (no pun intended). That's so cool.
        
       | xvilka wrote:
       | Such systems should be written using a safer language, like some
       | of the modern cryptocurrencies do. Rust, Haskell, OCaml, F# would
       | be a perfect fit.
        
         | ognarb wrote:
         | Do you volunteer to rewrite it in Rust?
        
         | captn3m0 wrote:
         | This I agree. Last time I tried setting up Taler, the whole
         | stack felt archaic (it even uses GNUnet I think).
         | 
         | The good thing is that all the protocols are documented and it
         | should be possible to have alternate implementations
        
         | rowland66 wrote:
         | That seems completely irrelevant.
        
           | adwn wrote:
           | > _That seems completely irrelevant._
           | 
           | Safety is irrelevant for a payment system?
        
             | otabdeveloper4 wrote:
             | Are there any real examples of exploits of unsafe payment
             | systems that could have been fixed by programming language
             | features?
        
               | bokohut wrote:
               | There are those of us with extensive experience in
               | payments with plenty of stories that would touch exactly
               | on this, so yes, but these stories are not public
               | information.
        
               | adwn wrote:
               | That's the wrong question to ask. The right questions
               | are:
               | 
               | 1) Are there any real examples of software exploits that
               | could have been fixed by programming language features?
               | 
               | 2) Is there an incentive to exploit software bugs in a
               | payment system?
               | 
               | To which the answers are 1) almost too many to count, and
               | 2) yes, definitely.
        
               | dbrgn wrote:
               | Here's a recent USENIX talk on the topic of memory
               | unsafety and the choice of programming languages: https:/
               | /www.usenix.org/conference/enigma2021/presentation/ga...
               | 
               | Slides can be downloaded. I hope the talk recording will
               | be available as well.
        
       | throaway876627 wrote:
       | Well, in practice buyers aren't going to be anonymous either: who
       | has ever paid online without first being required to create an
       | account on the seller's website before even having access to the
       | payment page?
       | 
       | And why would a business choose not to require account creation
       | when it is in their best interest to require one to increase the
       | lifetime value of the buyer (or even just simply to follow up
       | with the order)?
       | 
       | So this doesn't help with buyer privacy, and the exchanges will
       | be banks in practice, and banks too are in the business of
       | selling consumer spending data to data brokers...
       | 
       | My point is, the only value proposition of GNU Taler therefore is
       | standardizing online payments. But the W3C does a much better job
       | at it with the Web Payments and Credit Transfers specifications.
        
       | greatgib wrote:
       | Very nice concept, but I guess that if you try to create an
       | exchange or accept payments with that: governments, tax offices
       | and FATF institutions will come after you.
       | 
       | TLDR with my understanding of the concept:
       | 
       | At the opposite of crypto, the concept is that anyone can create
       | an "exchange" acting as a bank, and all transactions are public
       | in an encrypted form.
       | 
       | So you can check the transactions if you know the key of your
       | transaction. But it is not crypto in the sense that you have to
       | trust one authority (the exchange) as a bank. It is the one that
       | will hold user credits in the end.
       | 
       | The very fun thing is to create a "bank" like that for you and
       | your friends. It is like an IOU bank.
        
         | captn3m0 wrote:
         | Have you read the paper or website? Taler explicitly envisions
         | exchanges as regulated and audited entities.
         | 
         | The central bank should audit exchanges, and it even provides
         | mechanisms to make this simpler. One leg of the exchange runs
         | on traditional finance rails (ACH) as well.
         | 
         | It isn't anyone can be a bank, it is "regulated audited
         | entities should be able to exchange a ACH transfer for digital
         | tokens".
        
       | helen___keller wrote:
       | I read about Taler a few years back, and I'm excited to see that
       | it is still under development.
       | 
       | In my opinion, for those of us who aren't anti-government, Taler
       | represents an ethical future of digital spending:
       | 
       | It is interoperable, so unlike our current Visa situation, the
       | free market should be able to bid down payment fees to a fair
       | rate. It's insane to me that Visa and Mastercard have basically
       | positioned themselves as exclusive middlemen on the vast majority
       | of digital transactions, in an age when so much commerce
       | necessarily is digital.
       | 
       | It offers privacy that Visa / PayPal / etc cannot.
       | 
       | It makes income traceable in a way that bitcoin does not, to
       | facilitate lawful taxation.
       | 
       | It is inherently scalable in a way that bitcoin arguably is not
       | (bitcoin has offchain scaling mechanisms, sure, but if you're
       | being honest it's a stretch)
       | 
       | It's not introducing a new currency or coin that will be
       | endlessly speculated on, unlike most every crypto solution out
       | there (even stablecoins rely on eth or others for transaction
       | fees)
        
         | als0 wrote:
         | > It makes income traceable in a way that bitcoin does not, to
         | facilitate lawful taxation.
         | 
         | Can you explain this a bit more? I thought all Bitcoin
         | transactions are completely traceable.
        
         | olah_1 wrote:
         | It sounds like Taler is not competing with Bitcoin.
         | 
         | Bitcoin is just as much about improving money in general as it
         | is about preserving and transferring wealth.
         | 
         | Before WWI, a large part of the world was all on the gold
         | standard. I think a Bitcoin standard would be similar to that
         | but with improvements to consensus.
         | 
         | Perhaps Taler is more competing with Lightning networks or
         | decentralized exchanges?
        
           | helen___keller wrote:
           | Taler isn't competing with bitcoin per se, but it's competing
           | with a particular vision of the bitcoin network (or any
           | blockchain) as "the future of digital payments". Lots of
           | people are into bitcoin as a digital asset, as some kind of
           | inflation-protecting security, etc. For these purposes, Taler
           | is completely orthogonal and not a competitor at all.
        
         | runeks wrote:
         | Comparing Taler to Bitcoin is not appropriate since Bitcoin
         | could be the very monetary unit that is used as the
         | denomination of payment amounts on the Taler network. In other
         | words, Taler is a protocol that is deployed _on top of_
         | Bitcoin, and does not compete with Bitcoin itself.
         | 
         | Bitcoin is (intended to be) a form of money -- just like USD,
         | EUR, gold, silver. The Taler network needs a unit of account
         | (numeraire) to denominate amounts in, and this is what money is
         | used for. Tail itself cannot function without a monetary unit
         | since it's a payment system (a way to _move_ money).
        
           | helen___keller wrote:
           | You are correct - I should have been more explicit, but I was
           | using comparing Taler as a system to move arbitrary money
           | against the Bitcoin network[0], which is a system to move a
           | specific money (Bitcoin the coins), or the various blockchain
           | networks, which do similar for other tokens (including
           | securitized fiat, as in stablecoins)
           | 
           | [0] "the Bitcoin network", meaning the use of blockchain
           | transactions to facilitate payments, or off-chain schemes to
           | do the same with on-chain settlement (as in lightning
           | network)
        
         | nullc wrote:
         | Taler proposes an extraordinarily unethical panopticon, where
         | unaccountable entities (both commercial and governmental)
         | without any due process can surveil every transaction you make.
         | 
         | Engage in the "wrong" kind of commerce and after the political
         | winds change-- maybe you get rounded up and executed.
         | Regardless of your political alignment, one can't really look
         | at the governance of many nations and say with confidence that
         | you can trust that they won't change in a way which profoundly
         | disrespects your human rights.
         | 
         | Taler misleads people into thinking that its private by
         | claiming that only merchants are surveilled. But every time you
         | pay you both were previously a recipient and you are paying to
         | someone else who relieves. Monitoring reception is equivalent
         | to monitoring everyone, and taler's surveillance is realtime
         | and always active.
         | 
         | > It makes income traceable in a way that bitcoin does not, to
         | facilitate lawful taxation.
         | 
         | Taxation is based on self-reporting, whistle-blowing, and
         | serious criminal penalties for evasion, not on invasive
         | realtime state surveillance into the private transactions of
         | individuals.
         | 
         | Facilitating "lawful taxation" by pervasive surveillance of
         | everyone who receives a payment is like preventing sexual
         | assault by requiring a camera in every bedroom streaming in
         | realtime back to government.
        
           | PeterisP wrote:
           | The claim "can surveil every transaction you make" does not
           | seem justified.
           | 
           | The way I see the process, the flow of Talers is strictly
           | asymmetric and one way, with a clear distinction between
           | users(consumers) and merchants:
           | 
           | 1. From exchange to user (deposits).
           | 
           | 2. From user to merchant (payments for orders).
           | 
           | 3. From merchant to exchange (withdrawals).
           | 
           | The monitorable steps are 1. and 3., which allow tracking the
           | total amount that you can spend and the total amount that the
           | merchant has received. The actual transactions (step #2) are
           | not surveilable, the system does not track who paid what to
           | whom.
           | 
           | The statement "every time you pay you both were previously a
           | recipient" is not correct, since as a non-merchant user you
           | can't be a recipient of payments, you can't have any income
           | in Taler, you can only spend what you yourself deposited in
           | the system through an exchange. And vice versa, as a
           | merchant, you can't make any payments, you can only withdraw
           | your Taler income for real money at the exchange - it's
           | exactly just as with a merchant account for receiving credit
           | card payments, which is strictly separate from any credit
           | card payments that the company might want to make themselves.
        
           | kderbe wrote:
           | This contradicts one of the claimed principles of Taler,
           | "Protect the privacy of buyers". Can you please explain how
           | the example you gave would be possible with Taler, in a way
           | that wouldn't be with crypto currency?
           | 
           | (off-topic: thank you for Opus.)
        
           | igorkraw wrote:
           | What do you think of Bitcoins/Ethereum etc. public ledgers?
        
             | nullc wrote:
             | In theory Bitcoin could provide a reasonable amount of
             | privacy by leaving identities unlinked, in practice it
             | doesn't. (Etherum's 'accounts' are extremely privacy toxic
             | way beyond Bitcoin)
             | 
             | Of course, if one wants to trust other entities one can
             | already easily use chaumian cash w/ Bitcoin.
             | 
             | https://bitcointalk.org/index.php?topic=5302025.0
             | 
             | That works similar to Taler except no integrated spyware.
             | 
             | This approach can even be implemented with multiparty
             | security relatively easily, so that the funds are protected
             | by a majority threshold rather than just requiring a single
             | point of failure.
        
           | helen___keller wrote:
           | > Taler proposes an extraordinarily unethical panopticon,
           | where unaccountable entities (both commercial and
           | governmental) without any due process can surveil every
           | transaction you make.
           | 
           | No, actually, you are describing the current state of affairs
           | with mainstream online payment systems like PayPal and Venmo
           | 
           | Taler uses blind signatures which means that your exchange
           | has no knowledge of where you are spending your tokens. In
           | essence, when you make a payment the merchant knows you have
           | an IOU to the exchange, the exchange knows it's a valid IOU,
           | but since it was issued with a blind signature the exchange
           | is not aware that it's an IOU that was issued to you. This
           | gives you privacy that parallels the use of real world cash.
        
             | nullc wrote:
             | Chaumian digital cash is fine, but that isn't what taler
             | actually implements.
             | 
             | Instead, it requires the recipient to identify themselves
             | and the amounts for every payments. This is a continuous
             | realtime surveillance which does not exist for cash.
             | 
             | Used perfectly it might be potentially more private than
             | paypal, but no one is under any illusion that paypal is
             | particularly private.
             | 
             | On a scale of ethical behavior providing strong privacy is
             | superior to providing limited privacy but both are vastly
             | superior to falsely claiming something has strong privacy
             | when it is limited.
             | 
             | Taler takes matters a step further a falsely claim that its
             | continuous realtime mass surveillance is required to
             | facilitate lawful taxation. This claim is false-- an
             | outright lie in fact. Not only is it technically not
             | required, it's not legally required either and taxation has
             | existed for countless generations when this kind of
             | electronic surveillance was unimaginable.
        
               | matthewdgreen wrote:
               | I would take this even a step further. To state the
               | obvious, the hard part of building a private currency
               | system is building the private currency system. Once
               | you've done that, it's relatively easy to deliberately
               | relax the privacy guarantees of the system in
               | straightforward ways _if that is something you want to
               | do._ (Whether this is advisable is totally orthogonal. I
               | 'm speaking strictly at a technical level.) Think about
               | this like having a perfect invisibility device. Once you
               | have such a technology, it's relatively easy to make
               | yourself deliberately more visible: e.g., throw a can of
               | paint over your invisible body.*
               | 
               | But Taler doesn't start out by building what I consider
               | to be a very strong privacy base and then allowing for
               | optional relaxations. Instead it makes a series of design
               | decisions that _begin_ with the idea that privacy will be
               | limited in certain ways, and then bakes those design
               | choices all the way down to the foundations of the
               | protocol. This means the designers have chosen the
               | deployment parameters, rather than the people and
               | democracies who might actually want to make the
               | decisions. This rubs me the wrong way.
               | 
               | * This has in the past been interpreted by people as me
               | saying "I think backdoors are great", which is funny and
               | also not true.
        
               | PeterisP wrote:
               | The main problem is that certain guarantees about
               | behavior are fundamentally incompatible with certain
               | attributes of transactions; you can have meaningful
               | assertions that hold only if _all_ transactions meet some
               | criteria and there is no optionality, because the
               | intentional abuse will simply choose the set of options
               | that circumvent whatever conditions you want to enforce.
               | 
               | Using your own example, if your "world" supports a
               | perfect invisibility device, then your world can't
               | provide any guarantees that under certain conditions
               | specific things will be seen - you can't have your cake
               | and eat it too, if you want or need such guarantees, then
               | you need to design a world where a perfect invisibility
               | device is impossible.
               | 
               | Stability of any financial system needs an ability to
               | protect against malicious, resourceful actors. Just as a
               | proof-of-work coin needs to protect against double-
               | spending and miner collusion, a Taler-like system needs
               | to protect against malicious exchanges (so, the
               | requirements foor auditability) and against malicious
               | fraudulent merchants (so, the requirements to ensure that
               | there's no option that a malicious merchant might use to
               | cash out anonymously after receiving a payment).
               | 
               | Perhaps there is some way to satisfy all needs, but I
               | personally doubt that, there are too many fundamentally
               | opposite requirements (anonymity vs AML; circumventing
               | gov't control vs ability to take legal action;
               | irreversibility vs reversibility of fraud, etc) - and a
               | system _has to choose!_ If 99% of your transactions use a
               | reversible mode and 1% are irreversible and untraceable,
               | well, you can 't have fraud protection for hacked wallets
               | since those will use the irreversible and untraceable
               | option; if you want feature A, you have to ensure that
               | feature B is impossible.
        
               | matthewdgreen wrote:
               | > and a system has to choose!
               | 
               | A system does not have to choose. The society that
               | deploys it has to choose which systems they will use, how
               | those systems will be configured and so on. That society
               | also needs to decide whether they will (or even _can_ )
               | ban alternative systems.
               | 
               | The technology itself should not force the designers'
               | favored technical balance onto society. An ideal
               | technology should allow the broadest possible range of
               | configurations, and let users and society make the
               | remaining decisions wherever it's technically possible.
               | 
               | (Many real-world systems are not ideal, and cannot
               | technically admit the broadest possible range of
               | solutions. But we know that centralized e-cash systems
               | can make different choices than Taler.)
        
               | PeterisP wrote:
               | My argument is that a broad range of constraints is
               | inherently impossible to satisfy within a single
               | fungible, fully interoperable money system - I agree that
               | "ideal technology should allow the broadest possible
               | range of configurations", however, even with such an
               | ideal technology designed by $perfect_deity the
               | "environments" with certain incompatible configurations
               | need to be kept distinct and separate enough so they de
               | facto form separate payment systems; and the users and
               | society can choose to use system A for purpose X and
               | system B (perhaps sharing all of the technology except a
               | configuration flag) for purpose Y, but the society can't
               | have a single system for both these purpuses, because if
               | they are substantially different, then money can't be
               | allowed to flow freely between the systems as that option
               | would break one or the other use case.
               | 
               | The society can freely choose between different systems
               | and properties/configurations of systems; but certain
               | emergent properties of a payment system that a society
               | might want to choose require that some other options are
               | closed off, that the configuration is set to ensure that
               | no transactions in that system can use that option.
               | 
               | For example, if some uses need an strictly anonymous
               | system and others need an strictly unanonymous system,
               | then these systems can interact only through some gateway
               | that enforces breaking anonymity in the latter; if some
               | uses need a reversible system and others need an
               | irreversible system, then interaction needs to happen
               | through some gateway that will reverse a transaction even
               | if the other leg can't be reversed, taking on financial
               | risk to cover the costs of such a scenario. And,
               | crucially, it seems plausible that in many cases such
               | gateways on the boundary between different configurations
               | are socially impractical to operate as they would have to
               | take on risks they can't protect from, and there would be
               | financial motivation to target them to abuse that
               | configuration difference.
               | 
               | For example, we're seeing a bunch of barriers between
               | physical cash USD and USD in bank accounts; and we're
               | seeing a bunch of barriers between USD payments via
               | cheques and USD Fedwire transfers. They are _almost_
               | interchangeable, but the boundary between different
               | "configurations" requires treating them as distinct and
               | anyone offering a service for unrestricted exchange of
               | one of those into the other is in for a world of hurt.
        
               | matthewdgreen wrote:
               | We are having two different discussions here. I am having
               | a technical discussion about how we should design
               | privacy-preserving payment systems. I think we should
               | design them to be as powerful as possible, since it is
               | vastly harder to "strengthen" a weak system than it is to
               | "selectively weaken" a powerful system if society decides
               | to do that. Using this approach means that society gets
               | the largest range of technology to choose from.
               | 
               | You are having a discussion about what solutions society
               | should adopt, and whether multiple systems should be
               | allowed. I think that's interesting but a very different
               | conversation.
               | 
               | The only place where these two discussions interact is
               | when technology developers proactively _decide to make
               | some kind of specific privacy /security compromise that
               | they think is the right one_. This means that societies
               | who want privacy don't get it. It means that societies
               | who want a different tradeoff don't get it. And the most
               | likely outcome is nobody ever adopts the new system, and
               | we get PayPal.
        
               | helen___keller wrote:
               | > falsely claiming something has strong privacy when it
               | is limited
               | 
               | Taler provides strong privacy _for buyers_ , not for
               | merchants. It's important to note that Taler is not a
               | peer-to-peer system for transferring money (there are
               | claims for interest in implementing such a system in the
               | future, but it does not exist), so the receiver is always
               | a merchant
               | 
               | Personally I don't mind that businesses are surveilled
               | when I purchase at them, because businesses are not
               | people and do not have the right to avoid surveillance. I
               | would be very concerned if such surveillance could extend
               | to me, but as discussed Taler provides buyers privacy and
               | blindly signed tokens cannot be traced to me.
        
               | hdevalence wrote:
               | At the end of the day, balance sheets always balance,
               | every transaction has two sides, and privacy for only one
               | side of every transaction is impossible.
        
               | littlestymaar wrote:
               | So Zcash developers feel threatened enough about Taler to
               | spread FUD about it. Sounds like a positive signal to me
               | ;).
        
               | waynesonfire wrote:
               | Hahah, nice.
        
               | igorkraw wrote:
               | Yes it is. You just write down "got 5 bucks from
               | customer" and submit it to the tax office. Now one side
               | is anonymous (customers) and the other not (merchant)
        
               | Ar-Curunir wrote:
               | And before that the customer writes down "received 5
               | bucks". Then you match up the two and can track the
               | customer's spending habits
        
               | littlestymaar wrote:
               | Well, If all you have is "A spent $5" and "B received $5"
               | you are still missing a lot of info to identify that A
               | and B are part of the same transaction (there are
               | thousands of $5 trades every day)
               | 
               | But that's not even how Taler works: you withdraw an
               | arbitrary amount of Taler (say $50), this is what is
               | recorded on the consumer side, but then you have
               | anonymous tokens (exactly like coins and bills) that you
               | can spend without connecting to anything: only the
               | supplier need to have a connection to a certification
               | entity (which ensure no double spending).
        
               | runeks wrote:
               | What is the denomination of these tokens? Do I hand over
               | 500 one-cent tokens to pay $5?
        
               | littlestymaar wrote:
               | That's the coolest thing about Taler: there is a thing
               | called "the refresh protocol"[1] which allows you to
               | obtain change after a transaction: that is, for instance
               | you pay with a $7 token for your $5 transaction, and you
               | get a $2 change token!
               | 
               | [1]: section "4.7.4. Refreshing and Linking" in this
               | paper https://ged.univ-
               | rennes1.fr/nuxeo/site/esupversions/41aac1ac...
        
               | igorkraw wrote:
               | If you go to your ATM and get 5 bucks, and then go to the
               | cafe to pay a coffee with it and it's registered in their
               | system, this is the exact same scenario, you realize
               | that?
        
               | helen___keller wrote:
               | In that case, please enlighten me how to pierce the veil.
               | For the sake of argument, you can play the role of an
               | exchange arbiter - you have full visibility into every
               | transaction.
               | 
               | On a given day you're signing a few billion in IOUs into
               | existence from users, while paying out a few billion in
               | IOUs from merchants. Since you are providing blind
               | signatures, you essentially have two ledgers: one is
               | transactions of the form (user, token_value, signed_at)
               | and a second is transactions of the form (merchant,
               | token_value, redeemed_at).
               | 
               | How do you suggest the exchange matches user to merchant
               | from this data?
        
       | deepstack wrote:
       | Brave or maybe chrome keep on insisting that it is
       | 
       | http://taleo.net and forward me to https://www.oracle.com/human-
       | capital-management/taleo/
       | 
       | Shame on your brave!
        
         | coderdan wrote:
         | The domain is set that way, it has nothing to do with the
         | browser and doesn't seem to have anything to do with taler.net
         | either.
        
       | im3w1l wrote:
       | So if I understand correctly Taler avoids double spending by
       | having a trusted central authority? Foss version of
       | Visa/Mastercard basically?
        
         | the8472 wrote:
         | > Foss version of Visa/Mastercard basically?
         | 
         | Current payment providers aren't anonymized. Taler provides
         | anonymity for the spender with blinded signatures.
        
         | segfaultbuserr wrote:
         | > Foss version of Visa/Mastercard basically?
         | 
         | Yes, but it's better. On one hand it's centralized and vendors
         | are regulated, BUT it implements anonymous payment for buyers
         | using a type of blind signature in cryptography (originally
         | envisioned by David Chaum's digital cash), it allows you to pay
         | for things without being tracked and analyzed. In my opinion
         | it's the best compromise between PayPal and cryptocurrencies, I
         | hope one day I can buy things via GNU/Taler.
        
           | rebuilder wrote:
           | It seems surprising to me if governments are willing to adopt
           | a digital payment system that does not enable full tracking
           | of who paid who what.
        
             | dbrgn wrote:
             | Taler supports full tracking of who received how much. That
             | is sufficient for the government's job of taxing income.
             | 
             | If - on the other hand - the government would also like to
             | mass surveil all its citizens, then that is a use case that
             | Taler explicitly and intentionally does not support.
        
               | nullc wrote:
               | This is so deceptive and dishonest.
               | 
               | Realtime mass surveillance of every party who receives
               | money is isomorphic to realtime mass surveillance of
               | everyone.
               | 
               | Every person who sends funds received them previously and
               | is sending them to someone who is receiving them.
               | 
               | Taler's surveilling is continuous, unaccountable, and
               | operates without any due process what so ever: No court
               | is required to authorize surveilling your records, nor
               | can you even detect it to fight the intrusion.
               | 
               | The claim that the mass surveillance is required to
               | enable taxation is outright untrue and inconsistent with
               | longstanding practice. Taxation, including sales taxes,
               | existed for a long time before low privacy electronic
               | payment networks existed.
        
               | 9000 wrote:
               | > Realtime mass surveillance of every party who receives
               | money is isomorphic to realtime mass surveillance of
               | everyone.
               | 
               | I don't believe it is.
               | 
               | For instance, imagine a closed system of three people:
               | Alice, Bob, and Carol. Initially we start off with
               | seeding both Alice and Bob $100 via Taler. We can see
               | that because it is public. Then, we see that Carol
               | receives $5. That is also public. Who gave Carol the $5?
               | 
               | If surveillance of money received is isometric to full
               | surveillance, you should be able to answer this question,
               | but clearly there is insufficient information, so clearly
               | they are not isometric. There may be special cases where
               | sufficiently large transactions can only have come from a
               | small pool of wealthy transactors, but I bet this would
               | be essentially meaningless in practice, and is absolutely
               | not the same as equating the system to full surveillance
               | of every participant.
        
               | igorkraw wrote:
               | That's just wrong. If me and 10 other people buy things
               | for 5 bucks from a vendor with taler, there is no way to
               | trace it to us as I understand, and no way to distinguish
               | which of us paid which 5 bucks. How is that isomorphic to
               | full surveillance? It's more privacy than both
               | traditional payment Systems _and_ most cryptocurrencies
        
               | [deleted]
        
               | rowland66 wrote:
               | So it looks like Taler is designed as a consumer to
               | merchant payment system, and not person to person. I
               | suppose that person to person could work with banks
               | serving as intermediaries.
               | 
               | With anonymity for consumer how would transactions like
               | exchanges and returns work?
        
               | captn3m0 wrote:
               | There's the possibility of creating a new wallet with
               | your money and handing over the keys.
        
               | sofixa wrote:
               | > That is sufficient for the government's job of taxing
               | income.
               | 
               | But not of fighting money laundering. If all income is
               | anonymous, it'd be relatively easy to set up a fake
               | digital-only product and buy yourself lots of it.
        
               | bdauvergne wrote:
               | To spend coins on yourself you must have received them
               | first under some identity, so it does not ease money
               | laundering.
               | 
               | It could eventually ease money laundering between
               | countries where laws are different. For example, sell
               | drugs from Netherland, receive Taller coins, buy virtual
               | things from your company in France to move it there. But
               | in fact you can already do that, buy a coffee shop in
               | Amsterdam, and transfer your income after taxes to your
               | bank account in France. Great your are a drug baron
               | living from France now.
               | 
               | What it will prevent is for a country to block their
               | citizen from buying something illegal from another where
               | it is legal, as it is done with card payment and drugs
               | bought online.
        
               | rebuilder wrote:
               | Isn't the point of money laundering to obfuscate the
               | identity of the original recipient of funds? Don't get me
               | wrong, I'm not sure Taler would make things harder for
               | regulators and law enforcement. KYC requirements apply
               | even if the payment method itself is anonymous. But I'd
               | think that given the opportunity, governments would like
               | to have better oversight of financial transactions.
        
               | PeterisP wrote:
               | Depositing money in the system is not anonymous - it
               | can't track whether you bought your own fake product or
               | something else, but you would already have to have
               | "clean" money to convert it to Taler at an exchange.
        
             | merdadicapra wrote:
             | from the Taler website
             | 
             | https://taler.net/en/principles.html
             | 
             |  _As a payment system must comply with local laws in order
             | to operate legally, GNU Taler must be designed to comply
             | with these requirements. GNU Taler must provide an audit
             | trail for investigators operating under the law.
             | Furthermore, we consider levying of taxes as beneficial to
             | society, and fair taxation requires income transparency.
             | Thus, GNU Taler must enable authorities to track income_
             | 
             | Which makes a lot of sense.
             | 
             | Privacy of buyers is protected from the merchant, that
             | doesn't imply that the payment is untraceable (or that
             | complete secrecy is necessary).
        
         | dbrgn wrote:
         | As far as I understand it, this is meant as an open and
         | standardized payment protocol that provides payment
         | interoperability between different banks, but that protects the
         | privacy of the sender (but not the recipient, due to tax
         | reasons).
         | 
         | It doesn't have anything to do with crypto currencies like
         | Bitcoin.
        
           | XorNot wrote:
           | This feels like it wouldn't square with Know-Your-Customer
           | requirements. Although: those only kick in legally above
           | certain transaction and spend levels, so simply rejecting
           | anonymous payments at those levels (or structured payments
           | below those) would make it legally viable.
           | 
           | It does make me feel good to see a GNU project like this out
           | there - at the core of the free world IMO, the bits of glue
           | which get our society running, it should really be _all_
           | open-source and open licenses.
        
             | im3w1l wrote:
             | How can you tell whether the payments are structured if
             | senders are anonymous?
        
               | XorNot wrote:
               | Because the recipients can't be anonymous, basically by
               | definition. So money moving in an apparently ordered way
               | to a receiver would draw attention to the recipient, who
               | would then have to explain why they were accepting the
               | payments.
               | 
               | If they're converting to physical goods, they also have
               | to be sending them somewhere - which is much harder to
               | anonymize.
        
             | helen___keller wrote:
             | > This feels like it wouldn't square with Know-Your-
             | Customer requirements
             | 
             | My understanding is that exchanges would do their due
             | diligence before exchanging your fiat for tokens, and
             | separately shops may do due diligance if necessary before
             | accepting your tokens; the exchange does not know that you
             | performed a transaction at this shop, and the shop does not
             | know with whom you exchange[0], but both those
             | relationships have separately done due diligence.
             | 
             | In particular I don't believe there could be a such thing
             | as a "darknet shop" or "darknet exchange" using Taler. If
             | any one entity is not following regulations, it should be
             | possible to track them down and subject them to the law. If
             | a merchant isn't following regulations, then they can't
             | redeem their tokens to fiat at the exchange. If the
             | exchange isn't following regulations, then the
             | auditor/government shuts them down.
             | 
             | [0] not sure about this one
        
               | captn3m0 wrote:
               | [0] is not correct, since the shop validates your money
               | against that specific exchange. But since there are going
               | to be a few regulated exchanges, it doesn't let the shops
               | track you meaningfully.
               | 
               | Plus shops will usually have more information:
               | email/address etc.
        
       | bokohut wrote:
       | At this very moment the U.S. Financial Service Committee is
       | holding a hearing on 'terrorism' and one would not be surprised
       | to learn that 'cryptocurrency' is the main discussion. What is
       | sacrificed when one is _no_ longer able to  "Follow the money."?
       | 
       |  _edit_
        
         | seany wrote:
         | Nothing
        
           | bokohut wrote:
           | I no AML/KYC expert but I have written software systems for
           | fraud purposes before and with that in mind such systems,
           | founded in data collection, are used every hour of every day
           | to link people to activities, legal or not. Given the
           | prolific prosecutorial proof available online as it relates
           | to the value of "who took the money", "who was paid", "who
           | has the money" in such legal cases clearly the institutions
           | tasked with 'security' see a great threat in not being able
           | to follow it.
        
             | seany wrote:
             | I was assuming the question was open to "moral"
             | interpretations, rather than strictly legal ones. In turn I
             | keep my position even with your concerns, because the
             | utilitarian calculus of comparing "being able to pay for
             | things anonymously" vs "this is helpful for fraud
             | prevention" is basically a non question in my mind.
        
         | carapace wrote:
         | "Dollars Against Democracy: Domestic Terrorist Financing in the
         | Aftermath of Insurrection"
         | 
         | https://financialservices.house.gov/calendar/eventsingle.asp...
         | 
         | It's a virtual hearing and you can apparently watch it live on
         | the Youtube:
         | https://www.youtube.com/watch?v=srCtXCY9GNg&feature=emb_imp_...
        
       | tom_mellior wrote:
       | This looks exciting. Did anyone manage to work through the demo,
       | though? I first installed the Taler Wallet for Android via
       | F-Droid, and it can scan the QR code for withdrawing from the
       | demo bank, but the actual withdrawal fails with some generic
       | message that "withdrawals are currently not possible". Then I
       | tried the browser extension in Firefox 84. It detects that it
       | should be doing something, but never actually completes a
       | withdrawal either.
        
       | sneak wrote:
       | In a rare case of where judging a book by its cover is actually
       | valid, I am going to call it right now: the fact that this
       | project can't even display their logo on their webpage correctly
       | is an indicator of the general level of competence/seriousness
       | brought to the table wrt competing with an existing global
       | financial system that, to put it plainly, _is_ competent and
       | serious.
        
         | tom_mellior wrote:
         | > this project can't even display their logo on their webpage
         | 
         | Could you expand on what you mean? I can see a logo.
        
           | sneak wrote:
           | Loading the linked webpage on the most popular web browsing
           | device in the world displays their logo with an incorrect
           | aspect ratio. It's pretty obvious that none of these free
           | software zealots tested their software with an iPhone, a
           | device that their target market actually uses.
           | 
           | A refusal to use or promote nonfree software comes into
           | slight conflict at times when developing consumer products,
           | as the markets are captured by nonfree software distribution
           | channels, a tragic fact. You have to be willing to bend your
           | own rules slightly while remaining true to your principles,
           | such as testing your website on an iPhone to make sure it
           | works right when nonfree software users visit it to learn
           | about why free software is better.
        
       | elric wrote:
       | What are the intended use cases here? Not many business are in
       | the business of using custom currencies?
        
       | FloDo wrote:
       | Related, a working paper published by the Swiss National Bank on
       | using this technology for a central bank digital currency:
       | 
       | https://news.ycombinator.com/item?id=26260524
        
         | herodoturtle wrote:
         | Thanks for this - although I think that working paper referred
         | to a centralised payment system - whereas this one seems to be
         | community driven.
        
           | grothoff wrote:
           | I am the GNU Taler co-maintainer and working paper co-author.
           | The development is community-driven. But as you see from the
           | paper, the community is talking with central banks about
           | deploying it. There is no contradiction.
        
             | [deleted]
        
             | herodoturtle wrote:
             | Thanks for weighing in - I stand corrected.
        
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