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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