Bitcoin payments processor Bitnet has launched a new tool that allows merchants to mitigate the risk of accepting bitcoin payments without confirmations. The new “Instant Approval” service applies data provided by blockchain web service company BlockCypher to determine if a transaction is safe to accept.
Because of how the Bitcoin network is designed, bitcoin payments cannot be fully trusted until they have been confirmed by miners and included in at least one block, while waiting up to six blocks is advised. But since this can sometimes take more than an hour, it makes Bitcoin a less-than-perfect payments system. Bitnet, therefore, has now introduced its Instant Approval tool to solve this problem to a large extent. Seamus Cushley, VP Product at Bitnet, 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. […] We partnered with BlockCypher to provide key data for our ‘Instant Approval’ service due to their best-in-class metrics and enterprise service.”
Together with BlockCypher, Bitnet analyzes all ongoing transactions on the Bitcoin