32. Recommendation on Ways to Do a Payment for An Order

32

Recommendation on Ways to Do a Payment For an Order

THERE ARE MULTIPLE TYPES of cryptographic algorithms used in asymmetric encryption. Here Satoshi’s main point on the reasoning for using elliptic curve cryptography (EDCSA) instead of RSA is the size of the transaction (bytes). To make the size of each transaction as small as possible so that block size stays manageable, Satoshi decided to use EDCSA.

Re: A newb’s test—anyone want to buy a picture for $1?

Satoshi Nakamoto Jnauary 29, 2010 12:22:13 PM

The recommended ways to do a payment for an order:

1. The merchant has a static IP, the customer sends to it with a comment.

2. The merchant creates a new bitcoin address, gives it to the customer, the customer sends to that address. This will be the standard way for website software to do it.

RSA vs ECDSA: it’s not the size of the executable but the size of the data. I thought it would be impractical if the block chain, bitcoin addresses, disk space and bandwidth requirements were all an order of magnitude bigger. Also, even if using RSA for messages, it would still make sense to do all the bitcoin network with ECDSA and use RSA in parallel for only the message part. Inthat case, everything that’s been implemented up to now would be implemented exactly as it has been.

We can figure out the best way to do this much later. It could use a separate (maybe existing) e-mail or IM infrastructure to pass messages, and instead of RSA, maybe just put a hash of the message in the transaction to prove that the transaction is forthe order described in the message. The message would have to include a salt so nobody could brute force the hash to reveal ashort message.