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Bitcoin [BTC]: Cryptocurrency retail broker, Bitpanda gains Payment Service Provider license

Priya

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Bitpanda, a leading retail broker for buying and selling cryptocurrencies in Europe, announced the receipt of a Payment Service Provider license, via an official blog post.

The retail broker also broke the news on Twitter, stating,

“We’re excited to announce Bitpanda has been granted a European PSD2 payment service provider license! What does that mean? We can launch new and innovative features we’ve been planning […]”

Bitpanda will be one of the few platforms in the cryptocurrency space to receive the payment service provider license, issued by the Australian financial market authority [FMA], according to the European PSD2 law.

PSD2 here, stands for Payment Services Directive 2, a directive by the European Union which is supervised by the European Commission. This directive regulates all payment services and payment service providers throughout the European Union and European Economic Area [EEA].

The main purpose of this directive is to increase participation and competition among European Union members in the payments system. This is achieved by allowing banks and non-banks to actively take part in the European payments market, while ensuring customers’ rights and protections.



The platform considered this approval a “significant milestone,” as it would enable them to launch “exciting features and products.” Further, the license would also allow the company to diversify its business model, which in turn, would play a key role in achieving their goal of connecting traditional finance with “the new finance world.”

DecFromBitpanda on Reddit stated,

“What does this mean for us and the industry? Well, we are one of the few European cryptocurrency fintechs to receive such a license and it allows us to offer even more innovative products and services – we can begin to connect the world of cryptocurrency and payments.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC]: Andreas Antonopoulos breaks down life cycle of a transaction on the BTC blockchain

Akash Anand

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Bitcoin [BTC]: Andreas Antonopoulos breaks down the life cycle of a transaction on the BTC blockchain
Source: Pixabay

Bitcoin [BTC] and its intricacies have been a concept that many users in the cryptoverse have been trying to understand since its inception. In his latest video, Andreas Antonopoulos, a major Bitcoin bull and the author of Mastering Bitcoin, elucidated on the life cycle of a wallet transaction from start to finish.

Antonopoulos stated that from the point someone sends a transaction from a wallet to its confirmation on the Bitcoin blockchain, the wallet constructs a transaction by accumulating the BTC in the user’s wallet and assigning the addresses. The user’s wallet then transmits the transaction’s information to one of the many nodes it is connected to, from where it can be sent to ‘1, 2 or even 8 other nodes’. He added:

“The transaction is then transmitted to other nodes, which can be mining nodes, e-commerce payment gateways, and many such options. Each of those nodes will receive the transaction from your node and each of those, in turn, will validate every single transaction. When the nodes receive the transactions, they don’t’ know whether it was created by you or was forwarded and hence each of these transactions need to be validated individually.”

Antonopoulos went on to state that if all the nodes are validated, ie. if the payment details are correct and if it is confirmed that no double spend has occurred on the blockchain, then eventually through the process of ‘flood propagation’, the transaction information will be sent to every other node, out of which some may be mining nodes. In his words:



“Once the transaction reaches the mining pool, it maintains a pool of unconfirmed transactions, like a bucket where all this unconfirmed data is stored. This is the pool known as the mempool. Also, know that there isn’t THE mempool rather there is ‘A’ mempool. Information in separate mempools can be in a 99 percent overlap but there will never be a case where it will completely similar.”

According to the author, the mempool also serves the purpose of providing transaction for a miner to add a new block after which ‘the race is on’ for the next block. Miners usually have to construct a block and then solve the Proof of Work on it to eventually make it a confirmed block. Antonopoulos claimed that once the block is made, the information will be sent to the mining equipment to solve the PoW on that particular block and probably after a “billion hashes” the miners will find the block. The Bitcoin bull elucidated on the information transfer back by saying:

“Once the PoW is solved, the mining node will propagate the node back the same way as it received. The nodes validate the block on the way back and once all the nodes confirm its validity, then the user’s wallet will know that there is a confirmation on the transaction. That is the entire life cycle of a transaction.”





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