The most important part of the scheme is that the payer can be ‘offline’ - so long as the acquirer can get the data, they can fire it off to the right ‘vault’ to get approval. Mastercard and Visa have their own vaults to approve transactions, then they tally them up and send them the issuing banks for final settlement.
So I’m replicating the same thing here. In this case, the payment card is something you issue to yourself, which you can use for an offline payment.
So if your phone dies, or you have no connectivity, you can whip out this card from your rfid/nfc protected wallet and still make a payment!
Of course, this is still early days, and all of the security and trust needs to be thoroughly tested. You wouldn’t link your life savings to this. But the idea of having a card, instead of your phone, that you can stash away that pays from your Lightning wallet is pretty compelling!
#nostr #safebox
quotingAll of these card payment schemes boil down to securely protecting a randomly generated unique secret that is used to authorize a payment.
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Where the ‘trust’ comes into play, is what can be done in conjunction with this random secret. That’s why you have to ‘trust’ the payment terminals - not to leak your secret, but also to transmit the amount you intend to pay.
The EMV (Europay Mastercard Visa) scheme partially addresses this problem with secure terminals that need to be certified, and mandating that merchants only use these terminals, but it’s still a big weak spot and point of capture in the system. If we are going to break free, we need to build from the ground up.
This is only another step in what we are building with bitcoin/nostr/lightning/cashu
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