Subject: Re: [bitcoin-dev] [Opt-in full-RBF] Zero-conf apps in immediate danger

From: Peter Todd <[email-masked]>
Date: Sat, 3 Dec 2022 07:12:02 -0500

On Sat, Dec 03, 2022 at 01:01:16PM +0200, Daniel Lipshitz wrote:
> Shapeshift used to be clients in fact one of our first when we started in
> 2016.
> 
> They no longer use our service but from time to time use us for fee
> recommendations. So we actually should remove their logo as a current
> client.

Yes you should. When did ShapeShift stop using your service? Did they explain
why?

> If you wish to test it out try find a merchant using Coinpayments or
> Coinspaid.
> 
> Also some of our non custodial liquidity providers offer service no
> custodial wallets. I am not sure which.

I see that you also advertise that Gap600 is "Trusted by" Coindirect and
Coinify, both AML/KYC crypto exchanges. Obviously, with full AML/KYC
double-spends are not much of a concern. And it's not even clear that
either accepts zeroconf anyway, as I'll explain later.

On this list you claimed that:

>  1. As of end of Nov 2022 - GAP600 has processed i.e responded to circa
>  15M transactions
>  2. These transactions have a cumulative value of 2.3B USD value.
>  3. We currently are seeing circa 1.5M transactions queired per month.

What's the value and number of transactions that *actually* rely on your
unconfirmed transaction tools? The only category that would apply for is goods
provided immediately and irrovocably, without AML/KYC. Because it sounds like
these figures may be significantly overstated.

Re: CoinsPaid, what you say here makes it also sound like it relies on AML/KYC:

> CoinsPaid applies a special software tool across its solutions to conduct
> stringent KYC procedures and a risk-based approach to CDD that verify user
> identities to mitigate fraud, money laundering and other activities linked to
> criminality and terrorism.
https://www.gap600.com/uncategorized/coinspaid/

Re: Coindirect, the documentation I can find appears to say that confirmations
are required before you can use coins deposited into Coindirect:

> Digital currency transactions must be confirmed on the relevant network block
> before they are considered valid. Only once confirmed, will you be able to
> use the coins deposited in your Coindirect wallet.
https://help.coindirect.com/hc/en-us/articles/115002441974-How-quickly-can-I-use-coins-deposited-into-my-Coindirect-wallet-

This is repeated here as well: https://help.coindirect.com/hc/en-us/articles/4409120006546--Deposits-

Re: Coinify, the API docs don't give any indication of risk scoring or any
other Gap600 integration:

https://merchant.coinify.com/docs/api/#payment-object

-- 
https://petertodd.org 'peter'[:-1]@petertodd.org