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authorFlorian Dold <florian.dold@gmail.com>2017-05-17 16:14:53 +0200
committerFlorian Dold <florian.dold@gmail.com>2017-05-17 16:14:53 +0200
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add r4r reference, review comment and related work remark
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@@ -441,6 +441,18 @@ deanonymization risk (see Section~\ref{sec:offline}).
%macropayment. It is therefore unclear how Peppercoin would actually
%reduce the computational burden on the exchange.
+The use of refunds for fractional payments has been suggested in the context of
+payment systems for public transit fees \cite{rupp2013p4r}. This approach
+relies on 2-showable coins that can be used one time for fractional spending
+and another time for refunding the remaining amount without losing anonymity.
+Unfortunately this approach cannot be used for a general-purpose payment
+system, since the refund operation of Rupp et al. allows transfeing money
+in a way that hides income from taxation. Refunding a coin into a wallet that
+didn't withdraw the coin is possible in their system, but consitutes a
+transaction between two parties that is not recognized by the system for the
+purpose of income taxation.
+
+
%\vspace{-0.3cm}
\section{Design}
%\vspace{-0.3cm}