Bitnet Partners with BlockCypher to Preempt Double Spending Attacks

Bitcoin payment processor Bitnet has partnered with Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term web services startup BlockCypher in a bid to get the upper hand on the resurgent threat of double spending attacks.

Most commercial bitcoin transactions are conducted by good actors. Therefore, many merchants are willing to accept them even before the network confirms the availability of funds from the address used, relying on a "zero-confirmation" transaction. In the vast majority of cases, the transactions are eventually confirmed, and accepting them right away is optimal for the customer experience.

Once the first confirmation comes in, the chances of double spending are significantly lowered, though not eliminated. However, the confirmation can take from several minutes to an hour or more. Only after multiple confirmations is it considered probabilistically impossible that fraud is happening, but this can take several hours.

Bitnet processes bitcoin Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term for its merchants, with a focus on large companies. It recently partnered with France-based Limonetik to bring bitcoin payments to its e-commerce clients.

BlockCypher aims to make blockchain data easier to integrate into applications. It will be providing key blockchain data to Bitnet, that will use it in real-time to assess the probability of a fraudulent transaction. This will enable merchants to complete sales instantly; Bitnet calls its service 'Instant Approval'.

Double spending has re-emerged as fraudsters look to exploit the haste of market participants to accept transactions, especially those of the low or no-fee variety that are typically low-priority for miners to process.

Altcoin brokerage ShapeShift.io has encountered a few such incidents. Confirming so on reddit, founder Erik Voorhees said the startup is looking to strike the right balance between customer experience and security using BlockCypher:

"We accept thousands of zero-conf transactions. We don't need it to be impossible to double-spend, we just need to mitigate the risk sufficiently to where it can still make business sense. An occasional double-spend against us is worth the cost for the improved user experience. We utilize Blockcypher's confidence system plus some of our own technology to detect likely double-spends and we require a conf on those. Clearly we need to tweak the system further... it's an ongoing process."

Like the block size issue, debate has erupted over how to best approach the issue directly with Bitcoin software.