What function does Mt. Gox's "Open Transaction" withdrawal option perform?

21

1

When withdrawing bitcoins from Mt. Gox, there is an option with a checkbox next to it titled "Open Transaction (6 confirmations)".

What does this do to my withdrawal?

I'm thinking this is probably a mislabeling for an option that ensures that even if the receiving address is for another customer account at Mt. Gox that the transaction will be sent through the blockchain. Otherwise, if those transactions are handled internally without appearing on the blockchain then it is difficult to prove that a bitcoin payment was sent.

Stephen Gornick

Posted 2012-03-11T04:52:53.620

Reputation: 26 118

I wonder if it's related to FellowTraveler's Open Transactions library. See https://github.com/FellowTraveler/Open-Transactions#readme

– Chris Moore – 2012-03-11T05:39:49.477

Answers

17

I just asked on the #mtgox IRC channel, and was told:

06:36 < dooglus> what does the "Open Transaction (6 Confirmations)" option
                 do when withdrawing BTC?
06:48 < Cory> If the Bitcoin address you're withdrawing to is a MtGox address,
              it will use the network and blockchain anyway.
06:49 < Cory> Otherwise, if that option is not checked, they will only internally
              transfer the funds.
06:53 <@MagicalTux> and instantly

So there you have it.

I suggested they should label it differently:

07:13 < dooglus> it would be better to use some different text for that option -
                 like "use bitcoin network even for transfers to mtgox deposit
                 addresses" for instance
07:19 <@MagicalTux> dooglus: it use to be something like that, but people were
                    complaining it was not clear enough

Chris Moore

Posted 2012-03-11T04:52:53.620

Reputation: 13 952

3They could leave the text as it is, and put a more detailed explanation (like the old text) as a popup. – o0'. – 2012-03-11T10:30:58.630

Yes, stating "(6 confirmations)" really isn't accurate or helpful. What if the recipient confirms it after just two? – Stephen Gornick – 2012-03-11T11:11:58.100

The (6 confirmations) is how quickly a transfer from one MtGox account to another will be accepted if you tick that box! I agree, it could be an awful lot clearer. – Chris Moore – 2012-03-12T03:10:32.663

Even with an "Open Transaction", MtGox is both the sender and the receiver, right? Why don't they accept it without any confirmations? Just to discourage this option (which incurs unnecessary block chain overhead)? – Thilo – 2012-03-13T01:43:46.013

That's a good question. Maybe they like as many as possible of the coins they control to be at least 6 blocks old to help prevent transaction fees. You have the option of doing an "internal" transaction which keeps their coins old, so if you decide to go the "open" route, you're the one that's going to wait for the coins to age, not them. Just a guess. – Chris Moore – 2012-03-13T05:16:33.373

Asked: 2012-03-11T04:52:53.620

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Active: 2013-02-05T02:00:17.017