How can a Credit Card pre-authorisation be replicated with a Dapp?

One of the frequently used functions of Credit Cards is to provide a guarantee of an uncertain future payment without having to lockup cash in deposit/escrow.

For example: hotel bookings/security deposits, car rental guarantees, AirBnb rentals, Uber taxi.

Bitcoin does not work well for these types of uncertain future payments / guarantees. Even with a Multi-signature wallet payment, when BTC is locked in escrow there is a value/exchange rate uncertainty as well as the need for the user to put funds up in advance. Neither of these features is likely to persuade customers or merchants to use crypto-currency for payment instead of a credit card.

If an ETH smart contract could be developed which could replicate the features and benefits of a credit card pre-authorisation without the limitations of BTC payments that might be a rather compelling Dapp for early mass market adoption.

Let's use this Discussion to see if we can share thoughts about how such a Smart Contract / Dapp might work.


  • JasperJasper Eindhoven, the NetherlandsMember Posts: 514 ✭✭✭
    edited August 2014
    You mean a contract with the following rules?
    1. The owner can put ethers(or other coin/asset) in the contract, but cannot extract the ethers.
    2. The contract has a particular recipient, the owner can release ethers him, or give the vendor a secret that allows him to release them.(effectively instant payment at that point)
    3. After some time, the ethers return by themselves. The vendor can choose to return them early.
    You can have multiple recipients i think, if they trust to tell each other how much has been taken.(so they wont accept it beyond that)

    Suggest just writing some code ;) .. Dont even have to run it yet.
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