BANKEX Plasma unveils its first use case – buying coffee from a vending machine with crypto. This is the first realization of the Plasma blockchain, a solution originally proposed by Vitalik Buterin for the Ethereum main network.
In July, BANKEX Plasma reached a capacity of 22,000 simultaneous transactions per second. This real-life usage of Plasma hastens the era of using crypto for everyday purchases. BANKEX shared the following video showing the first working prototype of BANKEX Plasma.
If this were treated as an ordinary Ethereum transaction, it would at the time of writing cost about $0.20 to process. It would also take about 2 minutes from the payment code scan to the delivery of the coffee. $0.20 is not much in the context of transfers of $100 or more.
And 2 minutes is trivial if you are enjoying your coffee in a café. But in the context of buying coffee, to go for less than $1 from a vending machine, these issues become more critical. BANKEX Plasma makes transactions instantaneous and drops the cost per transaction to $.005.
The key underpinning of BANKEX Plasma, the protocol powering this new way to make purchases with crypto, is a transparent off-chain infrastructure for payments, especially micro-payments. Plasma can be thought of as a prepaid wallet. Initially, some Ether is deposited into a Plasma wallet from another preferred wallet. Thus, the standard Ethereum transaction fee is paid only once.
In the context of quickly buying something cheap, the value of the Ether deposited into the Plasma wallet needs to be more than the price of one cup of coffee. A fully-loaded Plasma wallet allows users to take full advantage of cheap off-chain transfers.
Plasma itself is not a distributed blockchain. Instead, it is provided by a Plasma operator. Plasma transactions need to be created and signed locally by end-users using the same private keys as normal Ethereum transactions by only using the Plasma API instead of delivering signed transactions to the Ethereum Mainnet.
The protocol is currently replicated across three data centers and can verify client software for integration capability and provide instant liquidity to users. The high-speed protocol is fully operational but will undergo additional stress testing in beta.
In its first month of beta testing, BANKEX observed Plasma processing over 22,000 transactions per second without sharding, at a cost of less than $0.005 [half a cent] per transaction.
BANKEX Plasma is an implementation of the original Ethereum Plasma project, invented by Vitalik Buterin and Joseph Poon in August 2017. The development of BANKEX Plasma began in October 2017, when BANKEX developers introduced their own version of Ethereum Plasma at the ETHWaterloo hackathon.
Technically, BANKEX Plasma is a nested blockchain on the main Ethereum network. Ethereum smart contracts protect it from potential misbehaviors by participants and help increase the number of Ethereum transactions per second.
In other words, BANKEX Plasma is a shift of trust. BANKEX Plasma users give a little bit more trust to one party — the Plasma operator. This allows the Plasma operator to produce blocks at a faster rate, process transactions faster, and perform some additional functions.
At the same time, users can observe all operations, and if they see that the operator is acting improperly or maliciously, they can challenge the operator to prove that it is performing its functions correctly. If the Plasma operator cannot prove that they are acting in good faith and executing the user’s commands, users can stop interacting with them, thus cutting their losses and leaving a mark on the operator’s reputation.
There are three Ethereum addresses at play when buying coffee from a vending machine: the buyers, the vending machine owners, and the Plasma contracts. To buy a coffee, the buyer transfers some Ethereum to the Plasma contract, and then the Plasma engine begins to mine the first block.
Then, the buyer scans the QR-code of the item he wants to buy — in this case, a cup of cappuccino for 0.0003 ETH. By scanning the QR-code, the buyer initiates a Plasma transaction transferring 0.0003 ETH from his Plasma address to the vending machine owner’s address. After the transaction is executed, it is signed by the buyer’s private key. The vending machine owner receives their 0.0003 ETH and the buyer gets his Cappuccino.
BANKEX is a global top-50 fintech company developing the Proof-of-Asset Protocol to bring Banking-as-a-Service (BaaS) product modules and blockchain together to enable digitization, tokenization, and exchange of assets for the development of a tokenized global ecosystem. Leading BANKEX technologies include the Proof-of-Asset Protocol for tokenization, Plasma Protocol, BANKEX Scan, BANKEX Smart Justice, BANKEX Trust Service, and the Solidity Floating Point Library.
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For more information on this and other press release topics, contact:
BANKEX Head of PR Maria Zvyagintseva — Email
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Are Blockchain Casinos on the rise?
Over the years, the online casino industry has gone through many changes with new technology allowing for better payment methods and software on the sites. One of the newer additions to online casino sites is blockchain and sites that use this.
Here, we are going to discuss whether we think that blockchain casinos are on the rise or not. Keep reading if you’d like to find out more about these casino sites.
What Is A Blockchain Casino?
Blockchain technology is essentially a system that allows digital information not to be copied when it is being distributed. This technology originally started out as a method for Bitcoin which is a cryptocurrency and now is present in many online casinos. Blockchain was first invented in 1992 and since then it has come a long way.
A blockchain casino is a safe and secure casino that uses this special technology to pass the information on. There are many new casino sites that are already using blockchain technology but is the number of these still rising?
Why A Blockchain Casino?
You might be wondering about the advantages of blockchain casinos and why many casino operators are making the switch to this technology. The main reason for this is that there are many advantages to using this technology. Firstly, there is more transparency and trust and there is also a reduced risk of fraud.
This is something which is very important to many players at online casinos as they want to make sure that they are not passing their details onto a company that is going to sell it on.
When a casino uses blockchain technology, they can also allow players to make payments with cryptocurrencies like Bitcoin which are becoming even more popular in recent years. Of course, there are many other advantages of using a blockchain casino both for the player and the operator. For this reason, we have seen a rise in the number of blockchain casinos online right now.
Issues With Blockchain
There are some minor issues with blockchain casinos that operators are working hard to resolve as soon as possible. The fact that it is new means that there are some general infrastructure issues and the transactions can go through a lot slower than some players would like. Of course, these issues are set to be resolved sooner rather than later.
The Rise Of Blockchain Casinos
From the research done by companies interested in blockchain casinos, it is clear that these casinos are on the rise. In the first quarter of 2019 alone, there was $1 billion of TRON cryptocurrency gambled online. This is a lot of cash and it shows that players are not afraid to try out this new type of casino when it comes to spending their own cash.
Research also suggests that this income came from over 432,000 users which are a lot more people than it would have been in the past when this technology was first invented.
Of course, it is also important to note that the online casino industry is growing at the same time as the popularity of blockchain casinos. It is expected that the online casino industry will earn more than $50 billion this year which is a lot of cash.
With more people playing online in general and the technology improving so much – it is expected that blockchain casinos will become even more popular as time goes on.
It is clear that blockchain casinos have been on the rise for a while now and they don’t plan on stopping any time soon. As the technology gets more advanced and players can be sure that their details are going to be kept safe, these casinos are set to become even more popular.
On top of this, online casino regulators can rely on technology when it comes to ensuring casino operators are sticking to the regulations. Look out for the rise of blockchain casinos as time goes on and more casino operators start to make the switch to this technology.
We expect more payments being allowed in Bitcoin form as well as the other cryptocurrencies that are gaining a bit of momentum right now.
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