Bitnet Launches Bitcoin "Instant Transaction" Service to Speed ​​Up Merchant Transactions

Bitcoin payment processor Bitnet has launched an 'instant transaction' service to reduce the time merchants have to wait for Bitcoin transactions.

With "instant transactions", merchants working with Bitnet no longer need to wait for 2 to 6 confirmations, and Bitcoin transactions can be completed in just a few seconds.

So how does the service do this? It does this by calculating the probability that a Bitcoin transaction will eventually be confirmed by the blockchain.

Although it has partnered with Blockcypher, a bitcoin technology company that provides blockchain optimization and upgrade services, Bitnet will also implement its own risk reduction procedures, including investigating whether consumers add transaction fees to their transactions and observing how transactions are propagated through the bitcoin network.

Akif Khan, Bitnet’s chief business officer, said that if no transaction fee or miner fee is added to a transaction, then it is impossible for the transaction to be confirmed by the blockchain because there is no incentive for miners to verify it.

Akif acknowledged that network transmission makes Bitnet vulnerable to the risk of double-spending attacks, but said that such risks would be reduced if transactions could be completed quickly through the network.

Akif added:

“Most Bitcoins propagate across the network at a predictable rate, and if this is not the case, then it means that the transaction is being rejected by some peers or nodes. This rejection is usually caused by miners believing that the transaction is irregular.”

He continued: “Whatever the reason, when transactions propagate very slowly, the chances of double spends becoming a problem become much greater. And double spends can reach miners before the slow-propagating original transaction reaches them.”

Akif noted that Bitnet will not reject transactions from merchants. “We will notify the merchant based on the circumstances and cover the cost of that transaction.”

“Even if a transaction has a low probability of being confirmed by the blockchain, we will not reject the transaction. We will fall back and wait until the transaction is confirmed and the merchant is notified, thereby maximizing the merchant’s chance of completing the transaction.”

Akif revealed that the company will also consider another risk factor, but he declined to disclose the specific details because it involves company confidentiality.

Commercialization

This new service is available at no additional charge and is part of Bitnet's current payment processing solution.

When asked about commercialization, Akif pointed out that new customers will be attracted by the new service because it can meet their requirements for fast Bitcoin transactions, which will greatly increase the revenue of the Bitnet exchange platform.