“The biggest hurdle in the negotiations was likely whether the new means of payment should function exclusively online or also independently of an active internet connection.”
How can this even be a question? As long as governments don’t give me free internet access and the minimum of required hardware making it online only would be rediculous. Either it’s a working system for all citizens not just those who can afford it or it’s a conceptional stillbirth.
It is technically impossible to make it function without the internet. It’s called the double spending problem and it can only be solved with some sort of global consensus state
They will probably use secure elements (a small, tamper-resistant chip in your phone) and limit transaction amounts when you’re offline. As long as the other party has an internet connection, it will be impossible to double spend. There may also be a warning about an increased risk if you attempt an offline transaction. However, if there is no internet access and the fraudster is able to inevitably spoof/emulate/attack a secure element, the security mechanisms would fail and a double spend would be possible. This will be detected as soon as internet access is available again. As it requires a personal presence, the police should be reasonably capable of fighting such crime.
And the digital euro is not connected to a bank? The digital euro is supposed to be a souvereign EU way of paying independent from 3rd party providers, yet somehow they can’t do what they can for ‘technical reasons’? Where is the digital euro actually happeneing? In some magical cloud that is totally not just someone elses (…a banks …) computer? Ffs… ages ago we sorted out the “double spending” problem to pay with just our signature, yet now it’s technically impossible without a constant internet connection…
Poorly. The transactions clear when the plane lands, and this is a significant headache for airlines. More modern airlines have satellite internet onboard for this purpose, but it costs a lot to install on an airframe.
Source: worked in payments and asked an airline head pilot.
How can this even be a question? As long as governments don’t give me free internet access and the minimum of required hardware making it online only would be rediculous. Either it’s a working system for all citizens not just those who can afford it or it’s a conceptional stillbirth.
It is technically impossible to make it function without the internet. It’s called the double spending problem and it can only be solved with some sort of global consensus state
They will probably use secure elements (a small, tamper-resistant chip in your phone) and limit transaction amounts when you’re offline. As long as the other party has an internet connection, it will be impossible to double spend. There may also be a warning about an increased risk if you attempt an offline transaction. However, if there is no internet access and the fraudster is able to inevitably spoof/emulate/attack a secure element, the security mechanisms would fail and a double spend would be possible. This will be detected as soon as internet access is available again. As it requires a personal presence, the police should be reasonably capable of fighting such crime.
This is online not offline
Look if the tech is shitty enough to require installing facial recognition in every single store it will cause enormous amounts of problems
How do banks work then? Transfers in cash? Or does that global consensus state in fact not rely on realtime communication?
Banks form a network. Information is easier to copy than raw materials. Optic fiber is fast you know
And the digital euro is not connected to a bank? The digital euro is supposed to be a souvereign EU way of paying independent from 3rd party providers, yet somehow they can’t do what they can for ‘technical reasons’? Where is the digital euro actually happeneing? In some magical cloud that is totally not just someone elses (…a banks …) computer? Ffs… ages ago we sorted out the “double spending” problem to pay with just our signature, yet now it’s technically impossible without a constant internet connection…
How do payments on planes work?
You can scam the company, but if you do they know who you are and come after you. Which is not compatible with privacy
Poorly. The transactions clear when the plane lands, and this is a significant headache for airlines. More modern airlines have satellite internet onboard for this purpose, but it costs a lot to install on an airframe.
Source: worked in payments and asked an airline head pilot.