Enterprise Bitcoin payments processor, Bitnet has announced their partnership with a blockchain web services company, BlockCypher, with a view of providing a service for the merchants that reduces the risk of accepting bitcoin payments.
In order to counter the volatile nature of the bitcoin market price, payment services provide automatic liquidation of the bitcoins at the price point when payments are processed. But the transaction time could steel prove to be a risk factor. Sometimes it takes almost as long as ten minutes longer than the client’s intended transaction time. So, Bitnet will work with BlockCypher to mitigate this problem through Instant Approval.
What does Instant Approval offer?
First, Instant Approval calculates the probability of a bitcoin transaction being confirmed by the bitcoin network. Bitnet will accept the complete responsibility in case Instant Approval fails to do so, which is highly unlikely.
Instant Approval service will also prevent the merchants from double-spends. Double spending is not a very common mishap in the Bitcoin network since the network already has tactical procedure to prevent double spending. Usually the users are advised to wait for at least six confirmations over the network to avoid any risk. The Instant Approval system uses the double-spend detection from BlockCypher and transaction propagation metrics to determine on originating an instant approval.
VP Product of Bitnet, Seamus Cushley said,
“One of the biggest challenges for merchants wanting to accept bitcoin is how to accommodate the delayed confirmation times into their ‘real-time’ checkout flows and still be assured of being funded.”
According to Cushley, Bitnet wants to test out Instant Approval in the market as an enterprise-level service. And the key data for this evaluation will be provided by this affiliation with BlockCypher. Bitnet can provide the merchants with Instant Approval right away with the help of the subject-matter expertise of the BlockCypher.
Instant Approval to help the current situation
Recently, the bitcoin community has grown tired of the increased time for a bitcoin payment confirmation. Users are left frustrated with eight or nine minutes of confirmation period for six-confirmation over the network. Bitnet authorities believe that Instant Approval can save merchants from this problem.
Because of the longer time for the confirmation a bitcoin payment; users usually lock down the payment after just one confirmation. This might work in small time uses, but when handling thousands of transactions, it is safer to have some protective measures for the merchants.
Instant Approval makes a bitcoin payment to act like a credit card transaction. Now the credit card system is designed to provide Point of Sale service by receiving almost-instant authorization. But with credit card system, you also have to worry about credit related frauds, which is almost impossible with Bitcoin.
So, all in all Bitnet wishes to provide the merchants a top class service of Instant Approval that can provide two advantages at once; a fast and smooth payment service with strong assurance of safe bitcoin transaction. The new service is being offered at no extra charge and as part of Bitnet’s current payment processing solution.
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