Miners welcome: bComm Association offers perks to members

Miners welcome: bComm Association offers perks to members

Ten years removed from the Bitcoin genesis block, and Bitcoin is thriving in the form of Bitcoin SV (BSV), the only coin out there that realizes the potential of cryptocurrency as first conceived by Satoshi Nakamoto.

BSV is for miners looking for long-term profitability amid next year’s halving of the block reward, and subsequent halvings in the years to come. To stay profitable, Bitcoin has to continue scaling, allowing for larger and larger blocks to be mined.

Jimmy Nguyen, founding president of the bComm Association, has put it this way: “[W]e need much bigger blocks, to fit large numbers of increasingly diverse transactions – not just simple payments, but token, smart contract and a wide array of data transactions. BSV intends to massively scale to gigabyte size and one day, terabyte size blocks. BSV will be the world’s global public ledger, processing billions of transactions a day, and earning miners revenue for years to come.”

To maximize the benefits of mining BSV, miners are encouraged to be a part of the bComm Association. As the BSV community grows, with businesses including wallet providers such as CentBee and HandCash, and content monetization apps such as Keyport TV and Yours.org, members can stay up to date on industry players and remain in the know regarding all things BSV.

As part of the bComm Association, miners can network to optimize their business, connecting with platform developers according to their particular needs.

An added benefit to membership in the bComm Association is being automatically invited to its events, such as last November’s CoinGeek Week, which included a special Miners Day, featuring all the latest developments in the industry, such as the most efficient chips and rigs coming to the market.

In the latest edition of BSV Weekly, published by the bComm Association, Nguyen said that this year “will see a dedicated focus on scaling – working on the tools and improvements to support massive on-chain scaling.”

The association is also for investors, merchants, developers, and exchanges who recognize the future of money and commerce in blockchain, specifically BSV.

Join the bComm Association today. And to stay up to date on Twitter, follow the official bComm Association account.

CoinGeek Conference highlights why Bitcoin Cash is cash

CoinGeek Conference highlights why Bitcoin Cash is cash

For cryptocurrencies to be successful over the long-term, they need to be versatile and fungible. Bitcoin Cash (BCH) has already proven to be both, and will set the bar for how the eCommerce industry accepts digital currency going forward. For anyone in the eCommerce or retail space, the inaugural CoinGeek conference will be the definitive spot to learn why BCH has become so important, as well as to network with other professionals.

Dr. Craig Wright, chief scientist of nChain, one of the influential tech groups leading the development of Bitcoin Cash, expressed it best when he said, “Bitcoin is powerful right now.” The digital currency is quickly becoming a main alternative payment option in the eCommerce realm as more retailers embrace it every day. Wright will be one of many cryptocurrency leaders present for the one-day conference.

Joannes Vermorel, another leading blockchain authority and founder of the blockchain supply chain software company Lokad, will also participate in the conference. As an early adopter of BCH payments, Vermorel will be on hand to discuss how businesses can overcome hurdles with BCH.

Lorien Gamaroff, who founded the popular BCH wallet Centbee, once said, “What I like about BCH is that it’s reminding us that this was always meant to be cash. And cash needs to be able to be spent.”  The CoinGeek Conference is the perfect spot to learn how easy it is to exchange BCH for cash and accept it in any eCommerce environment. Join Gamaroff and the many merchants, visionaries and investors for the one-day event.

The inaugural CoinGeek Conference will be held on May 18 at the Four Seasons hotel in Hong Kong. Registration starts at 8 a.m., followed by a series of seminars on a wide range of important cryptocurrency topics that will help the community to grow and receive greater attention. The presentations are all being designed by the best names in the crypto space, and no single event can provide the wealth of knowledge and vision like the CoinGeek conference will.

Bitcoin.com CEO Roger Ver will be on hand, discussing BCH adoption around the globe. As he so aptly put it in a recent discussion, “BCH is building all the tools to make it useful as cash for the entire world.  And that’s why we are seeing merchant uptake around the world.”

Apart from the impact that BCH has, and will have, on the eCommerce industry, it is part of a movement that has brought about the innovation surrounding FinTech 2.0. Going forward, merchants are going to be the drivers of the entire ecosystem. As BCH continues to attract greater interest, eCommerce could very well soon be called “bCommerce” (Bitcoin Commerce).

Following the conference, there will be an after-party hosted by CoinGeek’s founder and cryptocurrency entrepreneur Calvin Ayre. Only a few weeks remain before the event, and space is limited. Don’t wait to make your reservation—pay today with BCH and get 50% the regular entry price.

Find out how you can integrate blockchain into your business by registering for the CoinGeek.com conference today.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
CoinGeek Conference highlights Bitcoin Cash future in a bCommerce world

CoinGeek Conference highlights Bitcoin Cash future in a bCommerce world

The first ever CoinGeek conference will take place on May 18 at the Four Seasons Hong Kong. The one-day event is this year’s greatest opportunity to mix with the visionaries, experts and merchants in the cryptocurrency sphere to learn how Bitcoin Cash (BCH) is molding tomorrow’s eCommerce market. The industry’s most prominent names, including Bitcoin.com owner Roger Ver, nChain Chief Scientist Dr. Craig Wright and nChain CEO Jimmy Nguyen, will be on hand to provide their insights on the changing eCommerce landscape. The day will be filled with exciting seminars on a variety of topics that will help decision makers create new alliances and broaden their reach to increase integration of BCH across the retail industry.

The eCommerce industry still relies greatly on traditional electronic payment processors such as VISA or MasterCard. The introduction of cryptocurrency has revolutionized the online retail market—heralding the age of bCommerce (Bitcoin commerce). But what merchants need is greater adoption of digital currency payment solutions, preferably Bitcoin BCH, which offers much lower processing fees than paid to credit card issuers. With Bitcoin BCH, payments are confirmed almost immediately on the blockchain and chargebacks are virtually eliminated, thus increasing a merchant’s bottom line.

Bitcoin Cash fulfills the promise of Bitcoin to be the first peer-to-peer electronic cash. Merchants and users enjoy low fees and reliable, fast confirmations. Bitcoin BCH offers easy global adoption, unparalleled innovation, unrestricted growth and truly decentralized development, keeping with the vision of the Satoshi Nakamoto white paper.

The event delves into a variety of subjects, offering seminars led by some of cryptocurrency’s expert minds. Better wallets and payment solutions, merchant use cases, regulations and FinTech advancements are just a few of the topics that will be discussed. Be sure to check out the entire agenda to see why this is such an important event.

The CoinGeek conference, which is also hosting an after-party courtesy of CoinGeek.com owner and entrepreneur Calvin Ayre, is shaping up to be a game changer in merchant adoption and education in the benefits of Bitcoin BCH. Attendees who pay with BCH will receive a 50% discount off the regular price. Time is running out to register and space is limited. Sign up today and join fellow business leaders, entrepreneurs and visionaries at the one cryptocurrency conference that can make a difference.

Find out how you can integrate blockchain into your business by registering for the CoinGeek.com conference today.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
'First of a kind' CoinGeek Conference joins dots between Bitcoin BCH

‘First of a kind’ CoinGeek Conference joins dots between Bitcoin BCH, bCommerce

The date for the inaugural CoinGeek Conference is fast approaching, and Jimmy Nguyen, CEO of the nChain Group—one of the influential tech groups leading the development of Bitcoin Cash (BCH)—will be on hand at the event to kick things off with a discussion why eCommerce is poised to become BCommerce (Bitcoin commerce).

Bitcoin Cash has been making waves since it was introduced in August 2017, and not just as an investment mechanism, but as a legitimate payment option with fast transactions, extremely low fees and reliability. To keep things moving forward, it’s time for the development of better merchant solutions, better cryptocurrency wallets and better technology. These are just some of the topics that will be addressed by the best cryptocurrency minds at the inaugural CoinGeek Conference.

In addition to being a place to learn about the evolving world of BCH and eCommerce, the one-day conference is also the ideal location to network with others in the industry, find new partners and help to drive business. In Nguyen’s words, “the biggest and brightest minds” will be on hand, including Bitcoin.com owner Roger Ver, Bitmain CEO Jihan Wu and nChain Chief Scientist Dr. Craig Wright, along with an extensive list of other crypto and technical experts.

Some of the topics to be discussed include Bitcoin BCH technical visions, how to overcome technical hurdles and the growth of BCH adoption around the world. This is certainly gearing up to be an incredible conference with a lot of fun events, an exceptional after party and the “most fun you will ever have in Bitcoin.”

This inaugural CoinGeek conference will be held at the Four Seasons Hotel in the heart of Hong Kong’s central district. Twelve different sessions are scheduled for the conference, followed by an after-party courtesy of Calvin Ayre, founder and owner of CoinGeek.com, who said “Bitcoin Cash is a movement.” The incredible event will be an eye-opener for merchant adoption and BCH education, and is the one cryptocurrency conference worth attending this year.

Space for the exclusive event is limited and advanced ticket purchase is required. Don’t wait—find out how you can integrate blockchain into your business by registering for the CoinGeek.com Conference today.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Bitcoin Cash ‘dream team’ to hash out road to bComm future at CoinGeek Conference

Bitcoin Cash ‘dream team’ to hash out road to bComm future at CoinGeek Conference

The biggest minds in Bitcoin  are all set to take on the challenge of revolutionizing transactions not just for today, but for the future.

At the inaugural CoinGeek.com Conference, which will take place at the Four Seasons Hotel in Hong Kong on May 18, the so-called Bitcoin Cash “dream team”—Bitcoin.com CEO Roger Ver, nChain Chief Scientist Dr. Craig Wright, and Bitmain CEO Jihan Wu—will be sitting down at the Industry Leaders Panel to discuss “The Road to bComm’s Future.”

Currently, the eCommerce sector remains heavily reliant on traditional card payment processors like Mastercard and VISA. But what merchants really need is cryptocurrency, preferably Bitcoin Cash (BCH), which will allow them to pay far lower processing fees than on today’s payment card systems, and with instant payment confirmations on the blockchain, chargebacks will create significantly less financial exposure.

To explain more the keys to moving eCommerce to Bitcoin Commerce (bCommerce), the CoinGeek.com conference will be focusing specifically on merchant adoption of the best micropayment solution with the lowest fees not just for the vendors, but also for the buyers.

Jimmy Nguyen, CEO of the nChain Group, will open the conference with a presentation of “A bComm World,” discussing how Bitcoin Cash will power the future of bCommerce. Bitcoin ABC leader developer Amaury Sechet will then explain Bitcoin BCH’s technical vision for a global payment system, while Lokad founder Joannes Vermorel will talk about overcoming eCommerce hurdles with Bitcoin Cash.

Before the afternoon’s Industry Leaders Panel, Ver will give the audience a glimpse of Bitcoin BCH adoption around the world, while Wright will discuss how tokenization and atomic swaps will transform digital commerce. Another panel will discuss new products, opportunities, and challenges for using Bitcoin—this time featuring HandCash co-founder Alex Agut, CoinText.io CTO Vin Armani, nCrypt COO Angela Holowaychuck, Centbee CEO Lorien Gamaroff, VGM Holdings Manager of Global Poker Jonas Odman, and Expedia Global Payments legal director Michael Wood.

Also speaking at the event are Yours.org co-founder and CEO Ryan X. Charles, who will talk about how to bring Bitcoin Cash to more mainstream users; SBI Crypto Chief Strategy Officer Jerry Chan, who will explain the “new crypto world” with a roadmap from FinTech 1.5 to FinTech 2.0; and Quione CEO Mike Kayamori, who will talk about the state or regulation and commercial adoption of Bitcoin in Japan.

The event, which is also hosting an after-party courtesy of CoinGeek.com owner Calvin Ayre, is shaping up to be a landmark in merchant adoption and education in the benefits of Bitcoin BCH.  With its bigger blocks, faster speed, and lower transaction fees, Bitcoin BCH represents the truer vision of Bitcoin as a peer-to-peer electronic cash system.

Registration for the conference is now open with a 50% discount for those paying in BCH, but credit card payments are also welcome.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

How to move eCommerce to bCommerce

More consumers are going to the web for most of their shopping. That’s a wakeup call for retailers, who need to find fast, reliable, and low-fee payment systems to meet the demands of their customers. Today’s e-commerce sector relies heavily on traditional card payment systems such as Mastercard and VISA, but what merchants really need is cryptocurrency—preferably Bitcoin Cash, which offers bigger blocks for more transactions, faster speed, and lower transaction fees.

 

How to move eCommerce to bCommerce
Click infographic to enlarge.

Other versions of the infographic are available below:

 

How to move eCommerce to bCommerce
PDF Version

How to move eCommerce to bCommerce
PDF Version

Embed codes:

Image 1: <a href=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-1.jpg”><img style=”width: 100%;” src=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-1.jpg” /></a>

Image 2: <a href=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-2.jpg”><img style=”width: 100%;” src=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-2.jpg” /></a>

Image 3: <a href=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-3.jpg”><img style=”width: 100%;” src=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-3.jpg” /></a>

 

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

How to move eCommerce to bCommerce

More consumers are going to the web for most of their shopping. That’s a wakeup call for retailers, who need to find fast, reliable, and low-fee payment systems to meet the demands of their customers. Today’s e-commerce sector relies heavily on traditional card payment systems such as Mastercard and VISA, but what merchants really need is cryptocurrency—preferably Bitcoin Cash, which offers bigger blocks for more transactions, faster speed, and lower transaction fees.

 

How to move eCommerce to bCommerce
Click infographic to enlarge.

Other versions of the infographic are available below:

 

How to move eCommerce to bCommerce
PDF Version

How to move eCommerce to bCommerce
PDF Version

Embed codes:

Image 1: <a href=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-1.jpg”><img style=”width: 100%;” src=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-1.jpg” /></a>

Image 2: <a href=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-2.jpg”><img style=”width: 100%;” src=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-2.jpg” /></a>

Image 3: <a href=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-3.jpg”><img style=”width: 100%;” src=”https://coingeek.com/app/uploads/2018/01/move-ecommerce-bcommerce-3.jpg” /></a>

 

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

All merchants want for Christmas should be Bitcoin Cash

With Christmas and other winter celebrations wrapping up 2017, merchants are seeing the best holiday shopping season in years.  In particular, holiday e-commerce spending is surging, estimated to break through $100 billion in 2017 in the United States alone, representing a 14% increase from last year.  As more consumer buying is done online, merchants naturally want fast, reliable, low-fee payment systems.   Today, e-commerce relies heavily on card payment systems like VISA and Mastercard.  But as virtual currency becomes the future of money, what merchants want should be a cryptocurrency that offers bigger blocks for more transactions, faster speed, and lower transaction fees.  What merchants really want for Christmas – and every day of the year – should be Bitcoin Cash.

The Bitcoin Scaling Debate

2017 was a breakout year for Bitcoin, the decentralized cryptocurrency which has soared in price over the past twelve months.  But while the “legacy” Bitcoin (traded under the ticker symbol BTC) captured much media attention this year, a newer kid on the blockchain – Bitcoin Cash (ticker symbol BCH) – emerged in August 2017 via a “hard fork” of the original chain.  Since then, it has quietly gained traction and I predict 2018 will be the year of Bitcoin Cash.

What’s the difference between these two coins and why should merchants care?  Bitcoin was born through a 2008 white paper published under the pseudonym Satoshi Nakamoto.  The paper’s title neatly summarizes the vision:  Bitcoin:  A Peer-to-Peer Electronic Cash System.   Bitcoin was designed to be used as daily “electronic cash” by people worldwide.  Its transformative concept was giving you the ability to send money or make payments directly to anyone in the world, without intermediary banks, payment processors or other trusted third parties in the middle.   The transactions are recorded on a distributed ledger known as the blockchain, which is maintained by decentralized mining nodes rather than by a central authority.  To achieve this vision, transactions on the Bitcoin blockchain need to be fast, low-fee, and instantly confirmed.

But due to internal debates within the Bitcoin community, the “legacy” Bitcoin (BTC) chain moved away from that direction.  Its blocks remain capped at only 1MB in size.  A new block is added to the blockchain every 10 minutes; with a 1MB data limit every 10 minutes, the legacy chain can process on average approximately 3 transactions per second (and at its maximum, 7 transactions per second).  By comparison, the global VISA network averages 2,000 transactions per second, and can reach 56,000 transactions per second during peak periods (such as holiday shopping juggernauts Black Friday and Cyber Monday).

To increase the legacy Bitcoin network’s throughput capacity, an easy solution would be to just increase the block size.  There have been efforts to raise the block size to 2MB, but that modest increase hardly solves the problem.  Other proposed solutions are controversial – such as a technical change called “Segregated Witness” or SegWit, which refers to splitting signature data from the transaction data to save space.  (In fact, once SegWit was actually activated in August 2017, the legacy Bitcoin is more appropriately called the “SegWit” chain and some cryptocurrency media sites – such as Bitcoin.com and CoinGeek.com have begun to call it by that name.)

At the core of this debate is a philosophical divide on what the Bitcoin network should be.  Should the Bitcoin blockchain be just a “settlement layer” – relying on “off chain” or “side chain” solutions to do the fast payment processing on different layers, and periodically settle payment transactions to the blockchain?  Or should it fulfill Satoshi Nakamoto’s vision of Bitcoin as a single “electronic cash” system where all transactions are processed and which is used by people efficiently around the world?   The Bitcoin community thus split into two camps:  “small blockers” and “big blockers.”  While their disagreements continued, the legacy network did not scale bigger and faster; it slowed down with backlogs of unconfirmed transactions which could take hours to confirm and cost high fees to process.  What consumer would use Bitcoin to pay for a $5.00 Starbucks coffee if it cost $10.00 or even as high as $28.00 just to process the transaction?  And why would merchants want to use such a slow and costly payment system?

The Rise of Bitcoin Cash

Weary of waiting for the legacy Bitcoin chain to scale bigger and faster, on August 1, 2017, proponents of big blocks and the original Satoshi vision forked off onto a new chain called Bitcoin Cash (BCH).  Its name emphasizes the goal of Bitcoin acting as electronic cash which is used, sent and spent on a daily basis – a future both consumers and merchants should welcome.

 

All merchants want for Christmas should be Bitcoin Cash

To achieve that vision, Bitcoin Cash (BCH) embraces bigger blocks.  Its chain began with an initial default block size of 8MB – far larger than the SegWit Bitcoin (BTC) chain’s current 1MB or 2MB size; that allows an average 24 transactions per second.   That of course is not enough to rival VISA or Mastercard speed.  So the Bitcoin Cash (BCH) network plans to scale to much bigger blocks and ultimately millions of transactions per second.  Its developer groups have already announced their goal to increase block size up to 32MB and higher in the future.

Through a joint Gigablock Testnet Initiative by Bitcoin Unlimited and our company nChain, blocks of up to 1 gigabyte in size (1000 megabytes!) have been successfully tested.   That would enable throughput capacity of over 10,000 transactions per second, and 864 million transactions per day.

And if 1GB was not enough, 1 terabyte (1 million megabytes!) blocks could be viable.  Joannes Vermorel, founder of Lokad (a quantitative supply chain technology provider in France), recently published “Terabyte Blocks for Bitcoin Cash” explaining how 1 TB blocks are viable on the Bitcoin Cash (BCH) chain.  A single terabyte block (added every 10 minutes) can contain about 4 billion Bitcoin transactions, and provide capacity of 7 million transactions per second.  Vermorel writes:  “Assuming a worldwide population of 10 billion humans, terabyte blocks offer about 50 transactions per human per day (57 actually, but the extra numerical precision is not significant”)” and “50 transactions per day per human appears sufficient to cover all human-driven activities.”  The scale of such a network is mind-boggling; it would enable Bitcoin Cash (BCH) to power not just monetary transactions but machine-to-machine data transactions of many types.  Such a powerful network can power smart contracts, the Internet of Things, and even artificial intelligence.  And as Vermorel explains, this is only possible on the Bitcoin Cash (BCH) network – not the Segwit Bitcoin (BTC) chain with its tiny 1MB blocks.

While the dream of a 1TB block remains in the future, there is no doubt that Bitcoin Cash (BCH) is headed to far bigger blocks.  Its network will have faster speed, so that transactions confirm almost instantly rather than waiting in a backlog queue for hours.  This yields low transaction fees, costing just cents per transaction.  Moreover, the multiple developer groups for Bitcoin Cash (BCH) are coordinating on numerous other features for future protocol upgrades.  This will ensure orderly growth of the network to become a global peer-to-peer electronic cash system.

All merchants want for Christmas should be Bitcoin Cash

Why Merchants Should Want Bitcoin Cash

The growth of Bitcoin Cash (BCH) comes just at the right time.  Not that long ago, merchant adoption of Bitcoin was on the rise.  But a JP Morgan report in 2017 found that retailer acceptance of Bitcoin has recently been declining.  No doubt that was due to rising fees on the legacy chain.  Just in December 2017, online gaming distributor Steam dropped Segwit Bitcoin (BTC) as a payment method due to increased transaction fees going from what was once $.20 to as high as $20.

Let’s examine the financial impact on leading e-commerce retailer Amazon.  On this past Black Friday’s shopping days over Thanksgiving weekend in the U.S., Amazon processed 12.78 million online transactions (on November 23 and 24, 2017).  On those dates, SegWit Bitcoin (BTC) transaction fees averaged $6 but Bitcoin Cash (BCH) transaction fees averaged around only $.20.  If Amazon accepted Segwit Bitcoin (BTC) for its 12.78 million transactions, fees would have totaled $76 million; but with Bitcoin Cash (BCH), transaction fees would only be $2.5 million.  However, most Bitcoin wallets are not yet configured for the cheaper fee structure the Bitcoin Cash (BCH) chain offers; by default, they use the same cost amount – expressed in Satoshis (one hundred millionth of a Bitcoin – the smallest unit) per data byte – that would be necessary on the Segwit Bitcoin (BTC) chain to process a transaction.  Once wallets are properly re-configured for the Bitcoin Cash (BCH) chain, transactions fee could be as low as $0.02 per transaction, which would reduce total transaction fees to only $250,000 for Amazon to do 12.78 million transactions on a Black Friday weekend!

Given this sharp discrepancy in fee impact to merchants, it’s no coincidence that Bitpay, the leading Bitcoin payment solutions provider for merchants, recently decided to accept Bitcoin Cash (BCH) payments.  In making this announcement, Bitpay explained that Bitcoin Cash (BCH) “allows for payments with significantly faster network confirmations and significantly lower miner fee costs.”

In a Bitcoin Cash (BCH) world with a massively-scaled network, merchants will benefit tremendously:

  • Merchants will pay far lower transaction fees than on today’s payment card systems.
  • Foreign currency exchange rates and costs will be minimized.
  • With instant payment confirmations on the blockchain, chargebacks will create significantly less financial exposure to merchants.
  • Auto-renewing payments can be automated on the blockchain with smart contracts. (Our company even has a patent-pending invention about that).

Those are keys to move eCommerce to bCommerce (Bitcoin commerce).

That’s a future we at nChain Group – along with many others around the globe – build towards with our research, development, intellectual property, and investments.  Indeed, there is much work to do before Bitcoin Cash (BCH) fulfills the Satoshi Nakamoto vision of a global peer-to-peer electronic cash system.    We need a massively scaled blockchain, more user-friendly Bitcoin wallets, better merchant point-of-sale applications for accepting Bitcoin, improved security solutions, and reasonable regulatory frameworks.  But when the building blocks come together, Bitcoin Cash (BCH) has the power to make the global money system far more efficient and change how the world operates.   That is why merchants should want Bitcoin Cash (which, one day, I believe will be known just as Bitcoin) – for Christmas, and every other day of the year.

Jimmy Nguyen is CEO of the nChain Group – the global leader in research and development of blockchain technologies. The nChain Group includes four business units: 1) nChain Limited – a blockchain research and development business; 2) nChain Holdings Limited – an intellectual property holding and commercialization company; 3) nChain Reaction – a new investment entity; and 4) nCrypt – a Bitcoin wallet and exchange in Canada. (nCrypt is currently known as nTrust, but will be re-branding in early 2018 to reflect its move to focus on Bitcoin.) The group of companies has grown to a team of over 60 world-class scientific research, engineering and business professionals primarily based in London, United Kingdom and Vancouver, Canada.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

All merchants want for Christmas should be Bitcoin Cash

With Christmas and other winter celebrations wrapping up 2017, merchants are seeing the best holiday shopping season in years.  In particular, holiday e-commerce spending is surging, estimated to break through $100 billion in 2017 in the United States alone, representing a 14% increase from last year.  As more consumer buying is done online, merchants naturally want fast, reliable, low-fee payment systems.   Today, e-commerce relies heavily on card payment systems like VISA and Mastercard.  But as virtual currency becomes the future of money, what merchants want should be a cryptocurrency that offers bigger blocks for more transactions, faster speed, and lower transaction fees.  What merchants really want for Christmas – and every day of the year – should be Bitcoin Cash.

The Bitcoin Scaling Debate

2017 was a breakout year for Bitcoin, the decentralized cryptocurrency which has soared in price over the past twelve months.  But while the “legacy” Bitcoin (traded under the ticker symbol BTC) captured much media attention this year, a newer kid on the blockchain – Bitcoin Cash (ticker symbol BCH) – emerged in August 2017 via a “hard fork” of the original chain.  Since then, it has quietly gained traction and I predict 2018 will be the year of Bitcoin Cash.

What’s the difference between these two coins and why should merchants care?  Bitcoin was born through a 2008 white paper published under the pseudonym Satoshi Nakamoto.  The paper’s title neatly summarizes the vision:  Bitcoin:  A Peer-to-Peer Electronic Cash System.   Bitcoin was designed to be used as daily “electronic cash” by people worldwide.  Its transformative concept was giving you the ability to send money or make payments directly to anyone in the world, without intermediary banks, payment processors or other trusted third parties in the middle.   The transactions are recorded on a distributed ledger known as the blockchain, which is maintained by decentralized mining nodes rather than by a central authority.  To achieve this vision, transactions on the Bitcoin blockchain need to be fast, low-fee, and instantly confirmed.

But due to internal debates within the Bitcoin community, the “legacy” Bitcoin (BTC) chain moved away from that direction.  Its blocks remain capped at only 1MB in size.  A new block is added to the blockchain every 10 minutes; with a 1MB data limit every 10 minutes, the legacy chain can process on average approximately 3 transactions per second (and at its maximum, 7 transactions per second).  By comparison, the global VISA network averages 2,000 transactions per second, and can reach 56,000 transactions per second during peak periods (such as holiday shopping juggernauts Black Friday and Cyber Monday).

To increase the legacy Bitcoin network’s throughput capacity, an easy solution would be to just increase the block size.  There have been efforts to raise the block size to 2MB, but that modest increase hardly solves the problem.  Other proposed solutions are controversial – such as a technical change called “Segregated Witness” or SegWit, which refers to splitting signature data from the transaction data to save space.  (In fact, once SegWit was actually activated in August 2017, the legacy Bitcoin is more appropriately called the “SegWit” chain and some cryptocurrency media sites – such as Bitcoin.com and CoinGeek.com have begun to call it by that name.)

At the core of this debate is a philosophical divide on what the Bitcoin network should be.  Should the Bitcoin blockchain be just a “settlement layer” – relying on “off chain” or “side chain” solutions to do the fast payment processing on different layers, and periodically settle payment transactions to the blockchain?  Or should it fulfill Satoshi Nakamoto’s vision of Bitcoin as a single “electronic cash” system where all transactions are processed and which is used by people efficiently around the world?   The Bitcoin community thus split into two camps:  “small blockers” and “big blockers.”  While their disagreements continued, the legacy network did not scale bigger and faster; it slowed down with backlogs of unconfirmed transactions which could take hours to confirm and cost high fees to process.  What consumer would use Bitcoin to pay for a $5.00 Starbucks coffee if it cost $10.00 or even as high as $28.00 just to process the transaction?  And why would merchants want to use such a slow and costly payment system?

The Rise of Bitcoin Cash

Weary of waiting for the legacy Bitcoin chain to scale bigger and faster, on August 1, 2017, proponents of big blocks and the original Satoshi vision forked off onto a new chain called Bitcoin Cash (BCH).  Its name emphasizes the goal of Bitcoin acting as electronic cash which is used, sent and spent on a daily basis – a future both consumers and merchants should welcome.

 

All merchants want for Christmas should be Bitcoin Cash

To achieve that vision, Bitcoin Cash (BCH) embraces bigger blocks.  Its chain began with an initial default block size of 8MB – far larger than the SegWit Bitcoin (BTC) chain’s current 1MB or 2MB size; that allows an average 24 transactions per second.   That of course is not enough to rival VISA or Mastercard speed.  So the Bitcoin Cash (BCH) network plans to scale to much bigger blocks and ultimately millions of transactions per second.  Its developer groups have already announced their goal to increase block size up to 32MB and higher in the future.

Through a joint Gigablock Testnet Initiative by Bitcoin Unlimited and our company nChain, blocks of up to 1 gigabyte in size (1000 megabytes!) have been successfully tested.   That would enable throughput capacity of over 10,000 transactions per second, and 864 million transactions per day.

And if 1GB was not enough, 1 terabyte (1 million megabytes!) blocks could be viable.  Joannes Vermorel, founder of Lokad (a quantitative supply chain technology provider in France), recently published “Terabyte Blocks for Bitcoin Cash” explaining how 1 TB blocks are viable on the Bitcoin Cash (BCH) chain.  A single terabyte block (added every 10 minutes) can contain about 4 billion Bitcoin transactions, and provide capacity of 7 million transactions per second.  Vermorel writes:  “Assuming a worldwide population of 10 billion humans, terabyte blocks offer about 50 transactions per human per day (57 actually, but the extra numerical precision is not significant”)” and “50 transactions per day per human appears sufficient to cover all human-driven activities.”  The scale of such a network is mind-boggling; it would enable Bitcoin Cash (BCH) to power not just monetary transactions but machine-to-machine data transactions of many types.  Such a powerful network can power smart contracts, the Internet of Things, and even artificial intelligence.  And as Vermorel explains, this is only possible on the Bitcoin Cash (BCH) network – not the Segwit Bitcoin (BTC) chain with its tiny 1MB blocks.

While the dream of a 1TB block remains in the future, there is no doubt that Bitcoin Cash (BCH) is headed to far bigger blocks.  Its network will have faster speed, so that transactions confirm almost instantly rather than waiting in a backlog queue for hours.  This yields low transaction fees, costing just cents per transaction.  Moreover, the multiple developer groups for Bitcoin Cash (BCH) are coordinating on numerous other features for future protocol upgrades.  This will ensure orderly growth of the network to become a global peer-to-peer electronic cash system.

All merchants want for Christmas should be Bitcoin Cash

Why Merchants Should Want Bitcoin Cash

The growth of Bitcoin Cash (BCH) comes just at the right time.  Not that long ago, merchant adoption of Bitcoin was on the rise.  But a JP Morgan report in 2017 found that retailer acceptance of Bitcoin has recently been declining.  No doubt that was due to rising fees on the legacy chain.  Just in December 2017, online gaming distributor Steam dropped Segwit Bitcoin (BTC) as a payment method due to increased transaction fees going from what was once $.20 to as high as $20.

Let’s examine the financial impact on leading e-commerce retailer Amazon.  On this past Black Friday’s shopping days over Thanksgiving weekend in the U.S., Amazon processed 12.78 million online transactions (on November 23 and 24, 2017).  On those dates, SegWit Bitcoin (BTC) transaction fees averaged $6 but Bitcoin Cash (BCH) transaction fees averaged around only $.20.  If Amazon accepted Segwit Bitcoin (BTC) for its 12.78 million transactions, fees would have totaled $76 million; but with Bitcoin Cash (BCH), transaction fees would only be $2.5 million.  However, most Bitcoin wallets are not yet configured for the cheaper fee structure the Bitcoin Cash (BCH) chain offers; by default, they use the same cost amount – expressed in Satoshis (one hundred millionth of a Bitcoin – the smallest unit) per data byte – that would be necessary on the Segwit Bitcoin (BTC) chain to process a transaction.  Once wallets are properly re-configured for the Bitcoin Cash (BCH) chain, transactions fee could be as low as $0.02 per transaction, which would reduce total transaction fees to only $250,000 for Amazon to do 12.78 million transactions on a Black Friday weekend!

Given this sharp discrepancy in fee impact to merchants, it’s no coincidence that Bitpay, the leading Bitcoin payment solutions provider for merchants, recently decided to accept Bitcoin Cash (BCH) payments.  In making this announcement, Bitpay explained that Bitcoin Cash (BCH) “allows for payments with significantly faster network confirmations and significantly lower miner fee costs.”

In a Bitcoin Cash (BCH) world with a massively-scaled network, merchants will benefit tremendously:

  • Merchants will pay far lower transaction fees than on today’s payment card systems.
  • Foreign currency exchange rates and costs will be minimized.
  • With instant payment confirmations on the blockchain, chargebacks will create significantly less financial exposure to merchants.
  • Auto-renewing payments can be automated on the blockchain with smart contracts. (Our company even has a patent-pending invention about that).

Those are keys to move eCommerce to bCommerce (Bitcoin commerce).

That’s a future we at nChain Group – along with many others around the globe – build towards with our research, development, intellectual property, and investments.  Indeed, there is much work to do before Bitcoin Cash (BCH) fulfills the Satoshi Nakamoto vision of a global peer-to-peer electronic cash system.    We need a massively scaled blockchain, more user-friendly Bitcoin wallets, better merchant point-of-sale applications for accepting Bitcoin, improved security solutions, and reasonable regulatory frameworks.  But when the building blocks come together, Bitcoin Cash (BCH) has the power to make the global money system far more efficient and change how the world operates.   That is why merchants should want Bitcoin Cash (which, one day, I believe will be known just as Bitcoin) – for Christmas, and every other day of the year.

Jimmy Nguyen is CEO of the nChain Group – the global leader in research and development of blockchain technologies. The nChain Group includes four business units: 1) nChain Limited – a blockchain research and development business; 2) nChain Holdings Limited – an intellectual property holding and commercialization company; 3) nChain Reaction – a new investment entity; and 4) nCrypt – a Bitcoin wallet and exchange in Canada. (nCrypt is currently known as nTrust, but will be re-branding in early 2018 to reflect its move to focus on Bitcoin.) The group of companies has grown to a team of over 60 world-class scientific research, engineering and business professionals primarily based in London, United Kingdom and Vancouver, Canada.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.