Stash from Texas demoted the server to a notary. The combination of Bitcoin and Open Transactions will allow any number of transactions, without requiring the user to trust someone. Is the solution to the problem thus blocksize in sight?
Transactions are secure, and partly slow and, above all, not scaled. Because the decentralized Bitcoin network, each node stores the entire database of all previous transactions. If this is too large, it brings the node to the limit of their capacity. Many users are therefore forced to use Transaction Server, which make a larger amount of transactions in their own databases faster: exchanges, service for offchain transactions and more. However, this confidence returns through the back door again – and with it the breaking of trust.
Ideal would be a model that as scalable as a transaction server – but neither dependent on confidence as the Bitcoin. Would it be possible? Yes, says Chris Odom. Odom has launched with Cliff Baltzley, the founder of Hushmail, Stash into life in Texas: the first platform that applies the Open Transactions protocol. They promises to bring the scalability of a transaction server with an essential characteristic of Bitcoins in harmony. Stash should be scalable and fraud-proof, allowing numerous financial instruments, take any desired currency and confirm transactions in real time.
Stash is just over a week gone “live”, but offers no commercial wallets on. It is still in the beta phase, but would like to offer, so Cliff Baltzley, in the fourth quarter commercial products. With several companies one was already in talks, but could not name any names. Finally, it should be each able to use for their own Stash, server internal processing of transactions.
When a user money (bitcoins) pays at Stash that Bitcoins are stored in a so-called multi-sig address. Multi-sig means that the key with which you have to sign a transaction is broken into several parts and requires a certain number of key fractions to sign the transaction later. For example, the key is broken into three parts, two of which are needed to perform a transaction.
With Stash this key fraction is stored in multi-voting pools. These are pools of servers, each of which receives a fraction of the key. Thus, if the user pays the Bitcoins in Stash, it prints the private key, and thus the control of Bitcoins from – but there is no single party which has access to it. Only a consortium of transaction servers that monitor each other, can dismiss the Bitcoins back from Stash network in the Bitcoin block chain.
To move next to the Bitcoin other currencies and goods, supported Stash also colored coins. These are, so to speak inked Bitcoins, representing another asset – gold, euro, stocks, whatever. Such goods need always to a relying party, which it publishes – the promises, for example, so and so much money be kept safe – but they are not to fake in Stash, since they are stored on the block chain.