Update to taxability
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@ -1376,23 +1376,29 @@ data being persisted are represented in between $\langle\rangle$.
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\section{Taxability arguments}
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We assume the exchange operates honestly when discussing taxability.
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We feel this assumption is warratned mostly because a Taler exchange
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requires liscenses to operate as a financial institution, which it
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risks loosing if it knowingly facilitates tax evasion.
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We also expect an auditor monitors the exchange similarly to how
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government regulators monitor financial institutions.
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In fact, our auditor software component gives the auditor read access
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to the exchange's database, and carries out test operations anonymously,
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which expands its power over conventional auditors.
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\begin{proposition}
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An auditor can detect an exchange operating either the refresh or
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linking protocol dishonestly.
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Assuming the exchange operates the refresh protocol honestly,
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a customer operating the refresh protocol dishonestly expects to
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loose $1 - {1 \over \kappa}$ of the value of thei coins.
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\end{proposition}
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\begin{proof}
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.. Not sure about this one ..
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\end{proof}
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\begin{proposition}
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If the exchange operates the refresh protocol honestly, then
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a dishonest wallet looses $1 - {1 \over \kappa}$ of the value
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of the coins it refreshes dishonestly.
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\end{proposition}
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\begin{proof}
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.. Can we reference something about cut and choose protocols? Or must we work this all out? ..
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An honest esxchange keeps any funds being refreshed if the reveal
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phase is never carried out, does not match the commitment, or shows
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an incorrect commitment. As a result, a customer dishonestly
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refreshing a coin looses their money if they have more than one
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dishonet commitment. They have a $1 \over \kappa$ chance of their
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dishonest commitment being selected for the refresh.
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\end{proof}
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We say a coin is {\em controlled} by a user if the user's wallet knows
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@ -1433,6 +1439,8 @@ for the residual value on $C'$ and runs the linking protocol to
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determine if it was refreshed too.
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\end{proof}
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At a result, there is no way for a user to loose control over a coin,
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\section{Privacy arguments}
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