- Cryptocurrencies gain in acceptance, but…
- High transaction fees and lengthy processing times delay implementation
- Bit4Sure cuts bitcoin transaction times
Now that some marquee names – Microsoft, Expedia, Overstock – have begun accepting bitcoin, it looks as if cryptocurrencies have entered the mainstream of commerce. Notice from Japanese retailer Rakuten appears to confirm that. The ecommerce giant, which has been called Japan’s Amazon, has announced plans to launch its own “Rakuten Coin” in the near future (http://nnw.fm/PFm8e). Not so fast, however. Ironically, Satoshi Nakamoto’s peer-to-peer payment system, which held out the promise of no intermediaries charging transaction costs, is plagued by high transaction costs. Other frictions also exist, one of which is tardy speed of execution. Nevertheless, getting bitcoin payments up to speed may be just around the corner.
Virtual Crypto Technologies Inc. (OTCQB: VRCP) has launched Bit4Sure, a proprietary cryptocurrency transaction confirmation solution. Virtual Crypto Technologies is a technology company dedicated to making cryptocurrencies accessible to the public, specifically by creating payment solutions for businesses and consumers, which combine application programming interfaces and mobile applications for implementation across ATMs, PCs, tablets and other mobile devices.
As useful as blockchain technology is turning out to be, its employment in payment transactions is running into unanticipated problems that result in high transaction fees and delayed processing. One major issue with blockchain processing is the limit on the number of transactions that can be “confirmed” in each block and the time it may take to “fully” verify a transaction. Authenticating a bitcoin transaction can be quite lengthy because of the confirmation steps involved.
The process begins when a bitcoin payment is made, an event that broadcasts to the bitcoin network that the transaction is now in the “unconfirmed transactions” pool. Bitcoin miners will access this unconfirmed transactions pool and attempt to verify the transactions they find there by solving complex algorithms. If they do, they group the transactions into a “block”, which is set at the end of the existing blockchain, extending it. Every time a new block is verified, the older, existing blocks are re-verified. Thus, older blocks carry more trust than newer ones. However, this going over old ground can drag out transaction time. Moreover, only a limited number of transactions can be confirmed in one block, which means that, typically, a new bitcoin block only appears after about 10 minutes.
Sometimes (especially when the price spikes), bitcoin transactions surge, resulting in increased competition for limited block space; this drives up fees. Bitcoin fees are computed according to system rules that take into account the coins someone plans to spend, their size, their age, and the transaction size. The bitcoin system does not add coins; every coin is kept separately in a wallet. When a payment is made, the wallet will attempt to select coins to match the amount. It’s very similar to paying $0.65 with traditional coins, where a consumer could select two quarters, a dime and a nickel. This increases transaction size and fees. If, instead, a user were making a 0.65-bitcoin payment and happened to have a 0.65 bitcoin, transaction size and fees, and possibly time as well, would be less.
Fortunately, the Virtual Crypto Bit4Sure solution is sure to cut transaction time (http://nnw.fm/5vs2P). It bridges the time gap from when a transaction is published on the bitcoin network to the moment it joins the blockchain, essentially confirming a transaction before it reaches the blockchain for inclusion in a mined block. The Bit4Sure API also provides subscribers with direct access to Virtual Crypto’s proprietary algorithm model, giving them real-time confirmation of cryptocurrency transactions, as well as the ability to monitor the trading market of any cryptocurrency, protecting subscribers from delay, double spending and fraud. Virtual Crypto anticipates that the Bit4Sure API will be particularly attractive to crypto exchanges, payment processors, crypto wallets and other direct participants in the industry. The platform incorporates a mobile app for consumers.
For more information, visit the company’s website at www.Virtual-Crypto.com
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