awemany

Solving the 0-conf problem using forfeits

by /u/awemany

Overview

The problem of ensuring good security for unconfirmed transactions in Bitcoin is repeatedly discussed in the community. Right now these so-called 0-conf transactions are usually expected to be of low risk in the case of small amounts and face-to-face interaction of merchant and customer.

	#!/usr/bin/env python
	# CSW vs. Peter Rizun bet demo by awemany
	# Note this discretizes time into seconds for easier understanding. This will
	# however-so-slightly bias the calculations in here, due to coincidences etc.

	import numpy as np

	MEAN_BLOCK_TIME = 600

	minute = 60

	#!/usr/bin/env python
	import numpy as np
	from scipy.special import binom
	from scipy.integrate import quad
	from scipy.stats import erlang
	######################################################################
	# awemany: look at binomial
	def bprop(k, n, p):
	"""Binomial probability density.
	Probability of drawing exactly k x-like items out of n total, where

	test
	*~