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Bitcoin problem can be solved with Bitcoin, says Money Button CEO

Priya

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Bitcoin problem can be solved with Bitcoin, says Money Button CEO
Source: Unsplash

Ryan X Charles,  the CEO of Money Button and a Bitcoin Cash SV proponent spoke about the concept wherein we don’t need to change the Bitcoin protocol to solve its problems, on his latest Youtube video.

Charles remarked that the concept is that Bitcoin can be used to solve problems that are prevalent with Bitcoin, stating that there was no need to change the protocol. He added that this is a “very simple idea” and stated:

“it’s basically the idea that if you have some type of issue like a particularly instant transactions or scaling, you can actually create businesses that create value for people and you can charge in Bitcoin for services that solve these problems and then you can payout in Bitcoin. So you earn, save, spend with Bitcoin and you can basically start businesses to solve problems”

He also stated that the problems can be solved with the help of smart contracts on Bitcoin. This was followed by Charles stating Bitcoin has a built in smart contract language that allows people to create any type of contract which is related to solving problems with Bitcoin. Charles added that the limited supply of the coin allows it to be sound money and that on-chain scaling is going to add on to its global adoption.

The CEO further elucidated on this concept in theory by speaking about the Bitcoin transaction confirmation, stating that it takes almost 10 minutes for the confirmation of a transaction. He added that currently Bitcoin SV apps relies on zero-configuration, wherein “you just sort of trust that it will confirm”. Charles stated that there is a possibility that this can be exploited, and that in many cases people can double spend if the transactions have not been confirmed.

He continued to say:

“First of all if the double spends don’t usually happen, then it’s just a business question of do the benefits outweigh the costs. If there’s a little bit of fraud, so long as that fraud isn’t overly expensive and you’re earning more money than you’re losing and fraud. It’s acceptable, although you certainly want to minimize fraud”

Charles stated that fraud can be minimized by analyzing the network and the people sending money and this information can be accumulated into a Bayesian probability theory calculation wherein the probability of fraud can be computed. He added that if that probability is low after a certain duration, then it can be accepted.



He went on to say:

“You can also provide insurance so you can guarantee an instant transaction and then basically the insurance company takes the cost of fraud on and so that way the merchant always has reliable transactions and they don’t have to worry about fraud ever but then they have to pay the cost of insurance.”

This was followed by Charles stating that this was one of the options to solve instant transactions using Bitcoin without changing the protocol.





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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] will be vulnerable to quantum computing if we’re not prepared, says Andrew Poelstra

Biraajmaan Tamuly

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Bitcoin will be vulnerable to Quantum Computing without preparation, indicates Blockstream Researcher
Source: Pixabay

Security is an important aspect of every crypto-asset and Bitcoin [BTC] is often dragged into debates on whether the blockchain is protected from hacks or vulnerable to certain technological developments.

In a recent episode of whatbitcoindid, Andrew Poelstra, the Lead Researcher at Blockstream, was asked about whether Quantum Computing was a genuine threat to the existence of some Bitcoin on the current blockchain.

Poelstra indicated that the threat was evident, but it was still a long way off from being practical in the current technological field. He mentioned that he expected quantum computing to come into play against the security of Bitcoin in “maybe less than 15 years” and said that he would be really surprised if “it was less than 25 years”.

Poelstra said that it was necessary to take actions in the current scenario for post-quantum systems because he believed that without any preparation for the impending technological aspect, it did not matter how the future rested. Without preparation, the community was going to be blindsided, he said.

He stated,



“It’s important now that we started working on standardization and exploring ideas and exploring what Bitcoin is going to look like in a post quantum world but in the current scenarios there were no candidates for post quantum schemes that would be reasonable to deploy them in a Bitcoin.”

The introduction of quantum computing in the cryptocurrency scenario was a topic which was widely debated among other personalities in the community as well. Mati Greenspan, a prominent eToro Analyst, had started earlier this year that the threat only existed to Bitcoin if quantum computing was available to only one person.

If people or users collectively upgraded to quantum computers, then the Bitcoin miners would upgrade among themselves to protect it from an alleged 99% attack, which is possible with a quantum computer.





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